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

question 393

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) reduce the overall demand for medical services because the elderly will not have to pay for hospitalization in the future.
• B) place downward pressure on healthcare prices.
• C) cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program.
• D) do all of the above.

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Definitions:

Profitability

An indicator of how profitable a company is relative to its total assets, demonstrating the efficiency with which a company can generate profit from its operations.

Receivables Turnover Ratio

A financial metric that measures how efficiently a company collects on the credit it extends to customers by comparing net credit sales to average accounts receivable.

Profit Margin

The percentage of revenue that remains as profit after all expenses are deducted from sales.

Net Income

Net Income is the total earnings of a company after all expenses and taxes have been deducted from total revenue.