What Effect Have Medicare Subsidies Had on the Consumption of Medical

question 153

Multiple Choice

What effect have Medicare subsidies had on the consumption of medical services?

• A) The consumption of medical services has been unaffected, because people don't consider the financial cost when seeking services related to their health.
• B) The consumption of medical services has been unaffected, because government restrictions have prevented patients from seeking a level of care above and beyond what they would choose if they had to pay for medical treatment out of pocket.
• C) The consumption of medical services has increased because Medicare subsidies give people the incentive to seek more care than they would otherwise.
• D) The effect cannot be measured because it is difficult to quantify the amount of resources devoted to our health care system.

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