Under the Current Structure of Medicare, the Movement of the Baby

question 575

Multiple Choice

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

• A) increase the demand for medical services and the share of those services financed by third parties.
• B) push both healthcare prices and expenditures upward.
• C) cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program.
• D) do all of the above.

---

Definitions:

Operating Profit

Earnings before interest and taxes, calculated by subtracting operating expenses from gross profit.

Mark-up

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

Unit Cost

The expense associated with creating, storing, or purchasing a single unit of a product or service.

Retail Prices

The price at which goods and services are sold to the final consumer for personal use.