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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Definitions:

Fixed Factory Overhead Volume Variance

This calculates the difference between the budgeted and actual volume of production, affecting the fixed overhead costs allocated to each unit of production.

Variable Factory Overhead Controllable Variance

The difference between the actual variable overhead costs and the budgeted costs controllable by management.

Variances

Differences between planned and actual performance in budgeting or costing.

Standard Costs

Predetermined or estimated expenses that are often used to measure the performance of manufacturing departments or operations.