We Say That Goods Are Substitutes When They

question 28

Multiple Choice

We say that goods are substitutes when they:

• A) serve similar-enough purposes that a consumer might purchase one in place of the other.
• B) are consumed together, so that purchasing one will make a consumer more likely to purchase the other.
• C) can replace something consumers typically purchase at a significantly lower price.
• D) change a consumer's preferences for a good or service.

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Definitions:

Third-Party Payers

Entities (other than the patient or healthcare provider) responsible for paying for medical services, such as insurance companies and government programs.

Economics

The social science that studies how individuals, businesses, governments, and societies make choices about allocating resources to satisfy their wants and needs.

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Medicaid

A health care program that assists low-income families or individuals in paying for long-term medical and custodial care costs.