Under the Current Structure of Medicare, Economic Theory Indicates That

question 15

Multiple Choice

Under the current structure of Medicare, economic theory indicates that the movement of the baby boom generation into the retirement phase of life will

• A) reduce the share of healthcare services paid for by a third party.
• B) push both healthcare prices and expenditures upward.
• C) increase the incentive of suppliers to provide healthcare services at a low cost.
• D) increase the incentive of consumers to economize on their use of healthcare.

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Definitions:

Circular-flow Diagram

A visual model in economics that shows how money, goods, and services flow through the economy between households and firms.

Factors Of Production

The assets utilized in creating goods and services, encompassing land, work, money, and business initiative.

Income Paid

The total earnings received by individuals or entities for their labor, investment, or property use.

Markets For Goods And Services

Venues where buyers and sellers exchange goods and services, including physical marketplaces and online platforms.