It Is Estimated That 20% of U

question 29

True/False

It is estimated that 20% of U.S. healthcare spending is from 1% of patients, those with three or more chronic conditions.

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Definitions:

Marginal Rate

Often referred to as the marginal rate of substitution or the marginal tax rate, indicating the rate at which one can trade off one good for another or the tax rate on the next dollar earned, respectively.

Substitution

Substitution refers to the economic principle where consumers replace more expensive items with less expensive ones or firms replace inputs with cheaper alternatives, in response to changes in price or availability.

Videocassette

A medium for the recording of analog audio and video tapes, now largely obsolete.

Diminishing Marginal Utility

The principle that the satisfaction or utility gained from consuming each additional unit of a good or service decreases as more of it is consumed over a certain period.