The Growth of Third-Party Payments Has Resulted in Higher Prices

question 509

Multiple Choice

The growth of third-party payments has resulted in higher prices for health-care services because

• A) the lower out-of-pocket cost for consumers has increased the demand for health-care services.
• B) consumers have less of an incentive to economize and shop for low-cost services when they pay a lower share of their bill.
• C) producers have less of an incentive to provide health-care services at a low price when consumers are not as cost conscious.
• D) All of the above are true.

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Definitions:

Prefrontal Cortex

The front part of the frontal lobes of the brain, associated with decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Inhibit Impulses

The psychological process of restraining or controlling one's spontaneous desires or behaviors.

Myelination

The process of forming a myelin sheath around the axons of neurons, which speeds up signal transmission.

Pre-frontal Cortex

A region at the front of the brain associated with complex behaviors, decision making, and moderating social conduct.