If Consumers Reduce the Purchase of Goods Whose Relative Prices

question 76

True/False

If consumers reduce the purchase of goods whose relative prices rise (substitution bias), the consumer price index (CPI) will tend to have an upward bias over time (overstates inflation).

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Capitated Payment

A payment arrangement in healthcare where a provider is paid a set amount for each enrolled person assigned to them, regardless of the number of services provided.

Medical Provider

An individual or institution that offers healthcare services to patients.

Primary Payer

The insurance policy or program that pays first on a claim for medical care, determining the extent of coverage before any secondary payer contributes.

Employer-provided Insurance

Health insurance coverage provided to employees (and often their families) as part of an employment benefit package.