A Major Benefit of a Health Savings Account Is That

question 37

Multiple Choice

A major benefit of a health savings account is that it

• A) combats moral hazard.
• B) means more health care services will be demanded.
• C) eliminates rising health care costs.
• D) creates the incentive to see a doctor regularly.

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Definitions:

Downward-sloping

A descriptor often used for demand curves, indicating that as the price of a good or service decreases, the quantity demanded increases.

Law of Demand

The principle that there is an inverse relationship between the price of a good and the quantity demanded, holding other factors constant.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level.

Other Things Equal

A concept that assumes all other variables are kept constant except the ones being studied.