Which of the Following Would Encourage Consumers to Economize on Their

question 314

Multiple Choice

Which of the following would encourage consumers to economize on their use of healthcare and producers to provide it more efficiently?

• A) a reduction in out-of-pocket healthcare expenditures
• B) government subsidies that encourage people to purchase health insurance policies with first-dollar coverage and small co-payments
• C) Medicare reform that at least partially substituted defined benefits (funds that could be used to pay for healthcare or the purchase of insurance) for the present cost reimbursement system
• D) all of the above

---

Definitions:

MR=MC

MR=MC is an economic principle stating that optimal production quantity is reached when marginal revenue equals marginal cost.

Theme Parks

Large outdoor entertainment venues designed around a specific theme, featuring rides, shows, and attractions for visitors.

Maximum Price

The highest legal price a seller can charge for a product or service, often set by government regulations.

Unlimited Rides

Refers to the purchase of a pass or ticket that allows the holder to take an unlimited number of rides within a set period, often used in amusement parks or public transportation systems.