A Recent Study of the Canadian Health Care System Estimates

question 1

Multiple Choice

A recent study of the Canadian health care system estimates that 20 percent of the difference between health care spending in the U.S.and Canada is due to age differences between the two populations.Other reasons for the differences include

• A)less access to medical technology in Canada.
• B)the hub-and-spoke hospital system in Canada.
• C)the monopsony power of the Canadian provincial health plans in negotiating fees with physicians' associations.
• D)the fact that there is no large inner-city population in Canada to drive up costs.
• E)all of the above.

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Definitions:

Units of Output

The amount of product that a company produces in a given period.

Workers

Individuals engaged in any form of economic activity to earn a wage or salary, including both skilled and unskilled labor.

Total Cost

The complete cost of production that includes both variable and fixed costs.

Economics

The social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants.