Which of the Following Would Help Control the Future Growth

question 27

Multiple Choice

Which of the following would help control the future growth of healthcare prices and expenditures?

• A) An increase in the share of healthcare costs paid for either directly or from personal medical savings accounts.
• B) The substitution of catastrophic (high deductibility) health insurance for low co-payment plans.
• C) More reliance on expansion in the supply of medical services rather than stimulation of demand.
• D) All of the above.

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Definitions:

Purely Competitive

A market structure characterized by a large number of small firms, homogenous products, and easy entry and exit, leading to firms being price takers.

Resource Demand Curve

A graphical representation showing the relationship between the price of a resource and the quantity of the resource demanded by employers.

Marginal Product

The additional output that results from using one more unit of a specific input, holding all other inputs constant.

Product Price

The monetary value assigned to a good or service that is to be sold in the marketplace.