The Total Amount That the U

question 63

Multiple Choice

The total amount that the U.S. government spends to support a covered type of health care service under the Medicare system equals

• A) the per-unit subsidy provided to producers of that service times the quantity of the service demanded by consumers at a below-equilibrium out-of-pocket price of the service.
• B) the per-unit subsidy provided to producers of that service times the equilibrium quantity of the service demanded at the market clearing price that would arise in the absence of Medicare.
• C) the below-equilibrium, out-of-pocket price that consumers pay for the service times the quantity of the service provided by producers at that out-of-pocket price.
• D) the below-equilibrium, out-of-pocket price that consumers pay for the service times the quantity of the service demanded by consumers at that out-of-pocket price.

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Definitions:

Business Factors

include the various elements that influence the operation and success of a company, such as market trends, competition, and internal capabilities.

Number

A mathematical object used to count, measure, and label; fundamental in mathematics.

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.

Creativity

The use of imagination or original ideas to create something; inventiveness.