Once the National Health Care Program Goes into Effect, We

question 94

Multiple Choice

Once the national health care program goes into effect, we can expect

• A) total expenditures on health care will decrease.
• B) more individuals will have more incentives to make decisions that promote better health.
• C) total expenditures on health care will increase.
• D) moral hazard will decrease.

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Definitions:

Price-Taker Market

A market in which sellers have no ability to influence the price of the goods or services they sell; price is determined by supply and demand.

Marginal Cost

The expense associated with manufacturing an extra unit of a product.

Marginal Revenue

The additional income received from selling one more unit of a good or service.

Expected Cost

The predicted amount of money that will be spent on a project or activity, taking into account various factors and possible changes.