Economic Theory Indicates That the Growth of Subsidies to Healthcare

question 64

Multiple Choice

Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will

• A) place downward pressure on the prices of healthcare services.
• B) lead to higher healthcare prices.
• C) increase the incentive of consumers to economize on their purchases of healthcare services.
• D) increase the incentive of healthcare providers to provide their services at economical prices.

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Definitions:

Liability Limitation

A provision or agreement that limits the amount of compensation that can be claimed in the event of damage or loss.

Business Organizations

Business organizations are entities set up for the purpose of carrying out commercial enterprise, encompassing various forms like corporations, partnerships, and sole proprietorships.

Dissolution Agreement

A legal contract that outlines the terms under which a partnership or corporation formally ends its business operations and distributes its assets.

Board of Directors

A group of individuals elected by shareholders to govern and make major decisions for a corporation.