Medicare Has Been the Focus of Many Proposed Reforms Over

question 127

Multiple Choice

Medicare has been the focus of many proposed reforms over the last several years because

• A) health care costs have risen more rapidly than the cost of other goods and services produced in the economy.
• B) nationalized health care systems are more efficient than private health care systems.
• C) cures for many major diseases are likely to be found in the next few years.
• D) government health care research has found that limiting access to doctors will increase the general health of the population.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers from conditions that could make commodities prohibitively expensive.

Price Floor

A government-imposed minimum price that can be charged for goods or services, intended to prevent prices from falling too low.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service.

Equilibrium Price

The market price at which the quantity demanded of a good equals the quantity supplied, resulting in no surplus or shortage in the market.