Which of the Following Reforms Could Potentially Reduce Spending on Health

question 150

Multiple Choice

Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

• A)nationalize health care so that all health services are government funded and operated
• B)give every citizen a fixed amount of money that can only be spent on health care services
• C)reimburse consumers for preventive health care expenditures so as to avoid costly emergency medical treatments in the future
• D)standardize the tax treatment of employer-based health insurance benefits and private spending on health care

---

Definitions:

Fixed Overhead

Regular, unchanging expenses incurred by a company, such as rent, salaries, and insurance, that do not vary with production volume.

Cost Per Unit

The cost incurred in producing, manufacturing, or acquiring a single unit of a product or service.

Ending Inventory

The value of goods available for sale at the end of an accounting period, not yet sold.

Manufacturing Costs

The total expense involved in manufacturing a product, including direct materials, direct labor, and overhead costs.