Recall the Application About the Possibility of Increases in Health-Care

question 67

Multiple Choice

Recall the Application about the possibility of increases in health-care expenditures crowding out consumption or investment spending to answer the following question(s) . In 1950, health-care expenditures in the United States were 5.2 percent of GDP; by 2000, this share had risen to 15.4 percent. Driving these increases were several factors: increasing relative prices of health care compared to other goods, a larger population of the elderly, and increased longevity. Since 1950, the average life span has increased by 1.7 years per decade.
-According to the Application, increases in health-care expenditures will have to crowd out some other component of GDP. The preferred outcome stated in the Application is that increased spending on health-care would come at the expense of

• A) investment spending.
• B) spending on consumer durables or larger houses.
• C) spending on non-durables such as food and clothing.
• D) spending on services such as higher education.

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Definitions:

Dim Light

A level of illumination that is lower than what is considered bright, often creating a subdued or intimate atmosphere.

Human Retina

The light-sensitive layer at the back of the eye that contains cells (rods and cones) which convert light into neural signals for vision.

Wavelength

The distance between successive peaks of a wave, often used to describe the physical property of light, sound, and other waves.

Dark Adaptation

The process by which the eyes become more sensitive to light in low illumination, improving the ability to see in darkness.