-The Above Figure Supports All of the Following Statements Regarding

question 77

Multiple Choice

-The above figure supports all of the following statements regarding health care EXCEPT

• A) the demand for health care is insensitive to price changes; as the price goes up, so does the quantity demanded.
• B) if all medical expenses were paid for by third parties, the quantity demanded would increase tremendously.
• C) due to third party payments, patients demand a higher quantity of health care services per year.
• D) the lower the deductible, the greater is the quantity demanded of health care services per year.

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Definitions:

Current Account

A country's trade balance, plus net income and direct payments, representing the difference between a nation's savings and its investment.

Tourist Expenditures

Amount of money spent by visitors in a country on accommodation, food, transportation, entertainment, and other services and goods.

Unilateral Transfers

Financial flows from one country to another that do not require repayment, such as foreign aid or remittances.

Balance of Payments

A record of all economic transactions between the residents of a country and the rest of the world within a certain period.