Article Summary An Organisation for Economic Co-Operation and Development (OECD)report States That

question 75

Multiple Choice

Article Summary
An Organisation for Economic Co-operation and Development (OECD) report states that administration costs for health care in the United States are the highest in the developed world,accounting for over 8 percent of spending in the health care sector,compared to a global average of about 3 percent.According to the report,expensive surgeries,high pharmaceutical costs,and corrupt practices increased global health care costs,and poor coordination between health care providers,duplication of tasks,and excessive time spent on paperwork all contributed to higher administrative costs.The report also noted that administrative costs are generally lower under government-managed health care systems than with private insurance,but governments could still significantly cut spending and improve patients' health.
Source: Alanna Petroff,"U.S.health care admin costs are double the average," money.cnn.com,January 11 2017.
-Refer to the Article Summary.The article discusses the high administrative costs of health care in the United States.Even if private insurance companies were more efficient and brought administrative costs down,consumers would ________ the full cost of medical treatment.This would result in the market equilibrium price and quantity of medical services being ________ than the efficient equilibrium price and quantity.

• A)pay less than; less than
• B)pay more than; less than
• C)pay more than; more than
• D)pay less than; more than

---

Definitions:

Profit Streams

Continuous streams of income generated from various business activities or investments over time.

Boeing and Airbus

Two of the world's largest aerospace manufacturers, known for designing, producing, and selling commercial jetliners, military aircraft, satellites, and other space and flight systems.

Nash Equilibria

Situations in a strategic game where no player can benefit by changing strategies while the other players keep theirs unchanged.

Plant Capacity

The maximum output that a manufacturing facility or plant can produce under normal working conditions.