During the Last Four Decades, the Share of Health-Care Expenditures

question 445

Multiple Choice

During the last four decades, the share of health-care expenditures paid for by third parties (either the government or insurance companies)

• A) has remained relatively constant.
• B) fell from approximately 60 percent in 1960 to 30 percent in 2007.
• C) increased from approximately 45 percent in 1960 to over 85 percent in 2007.
• D) declined during the 15 years following the passage of Medicare but has been increasing since 1980.

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Definitions:

Noncontrolling Interest

A portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company, reflecting minority shareholders' claim on assets and earnings.

Markup

The difference between the cost of a good or service and its selling price, represented as a percentage of the cost.

Inventory Transfers

The movement of goods from one location to another, which can involve changes in ownership within the same company or between different entities.

Effective Income Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing total tax expense by taxable income.