Critics of the Affordable Care Act Argue That It Will

question 87

Multiple Choice

Critics of the Affordable Care Act argue that it will increase moral hazard because:

• A) people who now have insurance will use more health care.
• B) people will not purchase the expensive insurance.
• C) people will not use as much health care.
• D) doctors will not prescribe as many procedures.

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Definitions:

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy relative to a base year.

Equilibrium Interest Rate

The interest rate at which the quantity of money demanded equals the quantity of money supplied, balancing savings and investments.

Equilibrium Interest Rate

The interest rate at which the quantity of funds demanded equals the quantity of funds supplied.

Price Level

The average of the current prices of goods and services produced in the economy, often used as a measure to track inflation or deflation.