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

question 74

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, economists Charles I. Jones and Robert E. Hall suggest that normal economic growth will cause health-care expenditures to be approximately what percent of GDP by the mid-century?

• A) 18
• B) 30
• C) 62
• D) 78

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired together; an unconditioned stimulus and a conditioned stimulus.

Fear Response

The physiological and psychological reaction to perceived threats, activating the body's fight or flight response.

Conditioned Stimulus

A stimulus that initially has no effect but, after being paired with an unconditioned stimulus, eventually elicits a conditioned response.

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, thought to be the basis of empathy and understanding others' actions.