Medicare is an example of a third-party payment for medical services that
A. causes providers to supply less of medical services than they would without the payment.
B. causes buyers to consume more of medical services than they would without the payment.
C. causes the price of medical services to rise for the consumer once the payment is provided.
D. does not cause any change in the equilibrium position for medical services which existed without the subsidy.
Answer: B
You might also like to view...
The opportunity cost of holding money is the
A) nominal interest rate on assets other than money. B) price of goods and services. C) level of wage and rental income. D) ease with which an asset can be converted into a means of payment.
The construct used to demonstrate efficient use of society's resources is the
a. production possibilities frontier. b. payoff matrix. c. input-output table. d. cost-benefit table.
The largest source of revenue for the federal government comes from
A) corporate income taxes B) estate and gift taxes C) individual income taxes D) Social Security and Medicare taxes (FICA)
Monitoring is often used by firms in an attempt to decrease
A) shirking. B) piece rates. C) adverse selection. D) signaling.