(I) the Medicare Program Is Financed by General Tax Revenue

question 591

Multiple Choice

(I) The Medicare program is financed by general tax revenue and provides low-income families with access to health care either free or at a low cost. (II) The Medicaid program covers the bulk of the health-care costs of the elderly and is financed mostly through a tax on the wages and salaries of current workers.

• A) I is true; II is false.
• B) I is false; II is true.
• C) Both I and II are true.
• D) Both I and II are false.

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Definitions:

Short Run

A period in economics during which at least one input or resource is fixed, limiting immediate capacity adjustments.

Zero Economic Profit

A condition in which a firm's total revenue equals its total costs, implying normal profit but no excess profit over what is considered normal in the industry.

Long Run

A period in economics where all factors of production and costs are variable, and firms can adjust all inputs as needed.

Marginal Revenue

The additional income that is generated by selling one more unit of a product or service.