Data on the Income Elasticity of Demand for Health Care

question 222

Multiple Choice

Data on the income elasticity of demand for health care suggest that health care is a(n)

• A)inelastic good.
• B)private good.
• C)public good.
• D)normal good.

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Definitions:

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen; the value of the next best choice.

Financial Investment

The purchase of a financial asset (such as a stock, bond, or mutual fund) or real asset (such as a house, land, or factories) in the expectation of financial gain.

Bank Certificate

A document issued by a bank certifying the deposit of money or financial instruments with a certain value.