Which of the Following Would Encourage Consumers to Economize on Health-Care

question 342

Multiple Choice

Which of the following would encourage consumers to economize on health-care expenditures and producers to supply health-care services more efficiently?

• A) an increase in out-of-pocket expenditures by health-care consumers
• B) decreased reliance on personal Medical Savings Accounts and health-care expenditures from the accounts
• C) decreased reliance on the purchase of catastrophic health insurance coverage and less reliance on insurance with first-dollar coverage and small co-payments
• D) the establishment of a national health-care system that would provide coverage to all people

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Definitions:

Inverse Demand Curve

A graph that shows the relationship between the price of a good and the quantity demanded, plotted with price on the vertical axis and quantity on the horizontal axis.

Equilibrium Price

The rate at which the amount of a good or service sought by consumers is equal to the amount available, achieving a state of market equilibrium.

Substitutes

Products or services that can replace or act as alternatives to another, affecting consumer choices and market dynamics.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded; also known as the market-clearing price.