Under the Current Structure of Medicare, Economic Theory Indicates That

question 30

Multiple Choice

Under the current structure of Medicare, economic theory indicates that the movement of the baby boom generation into the retirement phase of life during the years following 2011 will

• A) reduce the share of healthcare services paid for by a third party.
• B) push both healthcare prices and expenditures upward.
• C) increase the incentive of suppliers to provide healthcare services at a low cost.
• D) increase the incentive of consumers to economize on their use of healthcare.

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Definitions:

Current Ratio

An assessment ratio that evaluates how well a company can meet its obligations due within the next year, by dividing its current assets by its current liabilities.

Current Assets

Current Assets are assets that a company expects to convert to cash or use within one year, including cash, inventory, and accounts receivable.

Current Ratio

A financial ratio that measures a company's ability to pay off its short-term liabilities with its short-term assets, providing a snapshot of financial health.

Short-Term Debt Paying Ability

Measures a company's capacity to meet its short-term obligations using its current assets.