As Third-Party Payments and Government Expenditures on Healthcare Increased Following

question 128

Multiple Choice

As third-party payments and government expenditures on healthcare increased following the passage of Medicare and Medicaid,

• A) total expenditures on healthcare declined.
• B) the incentive of consumers to economize on their use of healthcare services increased.
• C) the incentive of suppliers to provide healthcare services at a low cost increased.
• D) both the prices of healthcare services and total expenditures on those services increased rapidly.

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Definitions:

Quantity Discounts

A pricing strategy where the price per unit of an item decreases as the quantity purchased increases, used to encourage larger orders.

Multi-Echelon

Multi-Echelon describes a supply chain model that involves multiple levels of inventory storage and distribution points, from manufacturers to end-users, to optimize inventory levels and delivery times.

Replenishment Orders

Orders placed to restock inventory to a desired level, ensuring the availability of products for continued sales or production.

Cycle Inventory

The portion of inventory that is planned to be sold in a given cycle, as part of the regular pattern of ordering and selling goods.