One Problem with Third-Party Financing of Health Care Is That

question 113

Multiple Choice

One problem with third-party financing of health care is that

• A) people have more incentive to utilize health care.
• B) demand falls so that suppliers cannot take advantage of economies of scale.
• C) it reduces the quality of health care people receive.
• D) it discourages people from relying on their physicians' advice in making health care decisions.

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Definitions:

Maximum Level

The highest or utmost point, degree, or volume of something that can be achieved or reached.

Total Revenue

Total earnings from business activities such as selling goods or providing services, before removing any operational costs.

Barrier To Entry

Elements that create barriers or obstacles, making it difficult for new entrants to join a particular market or business sector.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases leading to a reduction in average costs.