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:

Collusive Outcome

A situation where firms in a market or industry agree, often secretly, to set prices or output levels to the detriment of market competition.

Repeated Strategy

A course of action consistently employed in sequential or repeated decision-making contexts, often in game theory.

Prisoners' Dilemma

A scenario in game theory where two individuals acting in their own self-interest do not produce the optimal outcome, illustrating the potential conflict between personal and social interests.

Dominant Strategy

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