In a Single Payer Model of Healthcare, the Government Pays

question 42

Multiple Choice

In a single payer model of healthcare, the government pays for all healthcare. Because patients access healthcare at a zero or low cost, the quantity of healthcare services demanded exceeds the quantity provided.

• A) Both sentences are false.
• B) The first sentence is false; the second sentence is correct.
• C) The first sentence is correct; the second sentence is false.
• D) Both sentences are correct.

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Definitions:

Investment Required

The amount of capital needed to undertake a project, purchase assets, or start a business to generate future returns.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment appraisal.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window.