Use the Following to Answer Question(s): Third-Party Payers

question 41

Multiple Choice

Use the following to answer question(s) : Third-Party Payers

-(Exhibit: Third-Party Payers) When the price of $20 per visit becomes available to the consumer because of insurance:

• A) health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance.
• B) health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance.
• C) the new quantity of physician office visits is 1 million visits per week.
• D) both A and C are true.

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Definitions:

Fixed Rate Coupon

A bond feature that pays the holder a fixed interest rate over the life of the bond, leading to predictable interest income.

Common Shares

Equity securities that represent ownership interest in a company, giving shareholders voting rights and a share in the company's profits through dividends.

Predetermined Period

A predetermined period refers to a specific span of time that has been set in advance for a particular purpose or event.

Income Bonds

Bonds that pay interest only when the issuer has earned sufficient profits.