If Governments Provide Free Healthcare Services

question 192

Multiple Choice

If governments provide free healthcare services,

• A) this illustrates that governments can provide healthcare more economically than private firms.
• B) output and consumption of other goods will not be sacrificed.
• C) resources with alternative uses are allocated to healthcare and there is an opportunity cost of these resources.
• D) the opportunity cost of the resources used to supply healthcare is zero.

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Definitions:

Appreciates

Describes when the value of an asset increases over time in comparison to its original cost.

Eurobond

A bond that is issued in a foreign currency, different from the currency of the country or market where it is being issued.

Exchange Rate Risk

The potential loss or gain that may arise due to changes in the exchange rate of two currencies.

Euro

The official currency of 19 out of the 27 European Union countries, which forms the Eurozone.