Considering the Fact That Many of the Health Problems of Older

question 101

Multiple Choice

Considering the fact that many of the health problems of older adults are chronic rather than acute, which of the following is likely to be a concern about the medical system?

• A) Medicare does not have special provisions for chronic illnesses.
• B) Costs of prescription drugs are still not subsidized for the elderly.
• C) The medical system is still based on a "cure" rather than a "care" model.
• D) Home visits are not emphasized over hospital stays.

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Definitions:

Unlevered Cost of Capital

The cost of capital for a company that has no debt, reflecting the risk of investing in the company's equity alone.

Firm No Debt

A business that operates without borrowing money or issuing debt instruments.

Business Risk

The exposure a company or investor faces due to uncertainties in profits or dangers in its industry or economy.

Equity Risk

The risk of loss due to a drop in the value of stocks or equity securities.