Economic Theory Indicates That the Growth of Subsidies to Healthcare

question 10

Multiple Choice

Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will

• A) lead to higher healthcare prices.
• B) lead to lower healthcare prices.
• C) reduce the incentive of consumers to economize.
• D) increase the incentive of healthcare providers to provide their services at a low cost.
• E) do both a and c above.

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