A Buying Situation Can Involve Comparing the Costs and Benefits

question 218

Multiple Choice

A buying situation can involve comparing the costs and benefits of substitute items - such as real sugar to the sugar substitute Equal which,although more expensive than sugar,is purchased by many consumers because it contains no calories.This situation involves the consumer considering:

• A)a marginal analysis.
• B)a profit equation.
• C)a break-even analysis.
• D)a reference value.

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Definitions:

Health Risks

Potential factors or behaviors that can lead to disease, injury, or other health problems.

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the risk because another party will incur the cost.

U.S. Population

The total number of residents living in the United States, as measured by census and population estimates.

Defensive Medicine

The practice by healthcare providers of ordering tests, treatments, or procedures primarily to protect themselves from litigation, rather than to benefit the patient's health.