The Only Two Options to Control the Growth of Healthcare

question 107

Multiple Choice

The only two options to control the growth of healthcare spending are

• A) price controls and political rationing or competition and market prices.
• B) taxation or political mandates.
• C) subsidizing of healthcare insurance or government provision of healthcare.
• D) free healthcare or subsidized healthcare.

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Definitions:

Overhead Costs

Indirect costs of running a business that are not directly tied to a specific product or service, such as rent, utilities, and insurance.

Product Costing

The method used to assign costs to a product, including direct materials, direct labor, and overhead expenses.

Cost Driver

An activity or factor that incurs costs based on its level of use or consumption, influencing the total cost of production.

Activity Level

A measure of the volume or quantity of production or operations in a business, which can significantly impact costs.