Economists Who Support Market-Based Reforms for Health Care Believe That

question 69

Multiple Choice

Economists who support market-based reforms for health care believe that increased competition among providers of health care would

• A)decrease costs but decrease economic efficiency.
• B)decrease costs and increase economic efficiency.
• C)increase costs but increase economic efficiency.
• D)increase costs and decrease economic efficiency.

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Definitions:

Liquidation Value

Liquidation value is the estimated amount of money that an asset or business would fetch if it were to be sold or liquidated immediately, often used in bankruptcy proceedings.

Par Value

The nominal or face value of a stock or bond, set at the time of issue, and often used as an accounting value rather than a measure of market value.

Shares Outstanding

The total number of shares of stock that are currently owned by investors, including restricted shares owned by the company’s officers and insiders.

Contra Stockholders' Equity

Accounts on a company's balance sheet that have a negative balance, reducing the overall equity of stockholders.