After Two Years of Being in Effect by Early 2016

question 217

Multiple Choice

After two years of being in effect by early 2016, one apparent implementation problem that the PPACA faced was that

• A) many young people wanted to participate, but most older people did not.
• B) many older people wanted to participate, but many younger ones did not.
• C) in each state, the pricing structure (health insurance rates) was multitiered and too complex.
• D) the health insurance rates created an implicit wealth transfer from older to younger people.

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Definitions:

Scrap

Material waste or remnants resulting from manufacturing processes, which may have a recoverable value or can sometimes be reused or recycled.

Inventory

The raw materials, work-in-progress products, and finished goods considered to be the portion of a business’s assets that are ready or will be ready for sale.

Irrelevant Costs

Costs that should not be considered in decision-making because they will not be affected by the decision.

Direct Fixed Manufacturing Costs

Costs that are directly attributable to the production process and do not vary with the level of output but remain constant within a specific time period.