Which of the Following Grew Rapidly During the Years Following

question 272

Multiple Choice

Which of the following grew rapidly during the years following the passage of the Medicare and Medicaid programs?

• A) the share of healthcare expenditures financed by third parties
• B) the prices of healthcare relative to the prices of other goods and services
• C) expenditures on healthcare as a share of the economy
• D) all of the above

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Definitions:

Market Equilibrium

is the state in which market supply equals market demand, resulting in stable prices where the quantity of goods supplied equals the quantity of goods demanded.

Excess Supply

A market condition where the quantity of a good or service offered for sale by producers exceeds the quantity demanded by consumers, typically leading to a drop in prices.

Excess Demand

A market condition where the quantity demanded of a good or service exceeds the quantity supplied at a given price, leading to shortages.

Good Increases

Refers to a situation where the quantity or quality of goods available in a market or economy grows.