Originally Health Insurance Only Covered Major Medical Expenses

question 12

Multiple Choice

Originally health insurance only covered major medical expenses.What effect did this type of coverage have on the medical system?

• A)It helped contain costs.
• B)It encouraged patients to improve their lifestyle choices to prevent disease.
• C)It encouraged doctors to provide more medical procedures for patients.
• D)It discouraged hospitals from investing in expensive medical equipment and facilities.

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Definitions:

Marginal Propensity

Marginal propensity refers to the proportion of an additional income that an individual consumes rather than saves.

Additional Income

Income that is received in addition to the primary source of income, such as earnings from side jobs or investments.

Permanent Increase

A long-term or indefinite rise in the level or amount of something, such as income, output, or investments.

Federal Budget Deficits

Occurs when a government's total expenditures exceed the revenue that it generates, excluding debt from previous years.