Fran Is Interested in Purchasing a Major Medical Policy That

question 8

Multiple Choice

Fran is interested in purchasing a major medical policy that limits the total out-of-pocket amount that she will have to pay. She should consider a

• A) Copay.
• B) Coinsurance.
• C) Stop-loss provision.
• D) Hospital indemnity policy.
• E) Dread disease policy.

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Definitions:

Price-Discriminating Monopolist

A monopolist that charges different prices to different consumers or groups of consumers for the same product, to maximize profits.

Price Elasticity

The responsiveness of the quantity of a product demanded to a variation in its price, determined by dividing the percentage variation in the quantity demanded by the percentage modification in the product’s price.

Separate Markets

Economic markets that are distinctly separated by geographical boundaries, preferences, or other factors, preventing the mixing of products or services.

Resold

The action of selling an item or asset that has previously been sold or owned by someone else.