Why Did the Established Programs Financing (EPF) Mechanism of Funding

question 9

Multiple Choice

Why did the Established Programs Financing (EPF) mechanism of funding become inadequate for health care?

• A)The government imposed many corporate tax cuts.
• B)Health care spending increased dramatically, causing provincial and territorial overspending.
• C)The cost of education took up more dollars than had been anticipated.
• D)The population of Canada increased much faster than was anticipated.

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Definitions:

Giffen Good

A product that people consume more of as the price rises, violating the basic law of demand in economics.

Prices Change

A variation in the market price of goods and services over time, influenced by factors such as supply and demand, inflation, or government policy.

Bananas

Bananas are a type of edible fruit, botanically a berry, produced by several kinds of large herbaceous flowering plants in the genus Musa.

Preferences

Economic term referring to the subjective tastes and desires that influence consumer choices and priorities.