Article Summary A Growing Number of U.S. Citizens Are Going to Other

question 224

Multiple Choice

Article Summary
A growing number of U.S. citizens are going to other countries for elective surgery procedures. Improved quality and significant cost savings abroad have attracted an increasing number of what are being referred to as American medical tourists, especially those who either do not have insurance or whose insurance does not cover the desired procedure. As few as five years ago, Americans tended to travel to countries such as Thailand or Mexico for the procedures, but many are now choosing to go to Europe, where governments and hospitals are now publicizing these services. Many of the procedures being done overseas are joint replacement, and partly in response to the number of patients going abroad for these procedures, programs are being developed to reduce the cost of these surgeries in the United States.
Source: Elizabeth Rosenthal, "The Growing Popularity of Having Surgery Overseas," New York Times, August 6, 2013.

-Refer to the Article Summary.If European governments and hospitals continue to publicize their existing services to American medical tourists and more Americans consider joint-replacement surgery to improve their quality of life,what will happen in the market for joint-replacement surgery as a result of these two factors?

• A)Demand will increase,but these two factors will not shift the supply curve.
• B)Supply will increase,but these two factors will not shift the demand curve.
• C)Demand and supply will both increase.
• D)Demand will increase and supply will decrease.

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Definitions:

Inference

The process of drawing conclusions about a population based on a sample.

Parameters

Statistical or mathematical conditions and variables that define the scope and functioning of a model, equation, or procedure.

Level of Significance

A threshold in hypothesis testing that determines the probability at which the null hypothesis is rejected.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive," indicating a test's incorrect indication of a significant effect.