Which of the Following Would Increase the Incentive of Healthcare

question 412

Multiple Choice

Which of the following would increase the incentive of healthcare consumers to economize and help reduce the future growth of healthcare prices in the United States?

• A) an increase in the share of healthcare costs paid for either directly or from personal medical savings accounts
• B) subsidies that would encourage consumers to purchase low co-payment insurance plans
• C) a new government program that would cover the cost of prescription drugs purchased by all healthcare consumers
• D) a reduction in the eligibility age for the coverage of Medicare from 65 to 55 years of age

---

Definitions:

Market

An economic concept referring to a mechanism or environment where buyers and sellers interact to exchange goods, services, or information.

Dominant Strategy

In game theory, a strategy that is best for a player in a game regardless of the strategies chosen by the other players.

Economic Profit

The difference between revenue received from the sale of an output and the opportunity cost of the inputs used.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged, representing a state of strategic balance.