Once the National Health Care Program Goes into Effect and More

question 256

Multiple Choice

Once the national health care program goes into effect and more people will pay fewer of their health care expenses out of their own pockets than they did previously, we can expect

• A) the quantity of health care services demanded will increase.
• B) the quantity of health care services demanded will decrease.
• C) the quantity of health care services supplied will increase.
• D) the quantity of health care services supplied will decrease.

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Definitions:

Convex Preferences

A representation in economics of a consumer preference structure where a mix or combination of two goods is preferred over either of the two goods alone, indicating a desire for diversification.

Indifference Curves

A graphical representation of different bundles of goods between which a consumer is indifferent, showing the same level of satisfaction or utility for each point on the curve.

Downward Sloping

A characteristic of a graph or curve that shows a decrease in one variable as the other variable increases, often related to demand curves in economics.

Nonconvex Preferences

Preferences where an individual values mixtures of goods or services less than pure bundles, violating the convexity assumption in utility theory.