Growth in the share of health-care expenditures covered by third parties (for example, insurance or government programs) will
a. place downward pressure on the prices of health-care services.
b. reduce the incentive of suppliers to provide consumers with health-care services at a low cost.
c. make consumers more sensitive to the price of health-care services.
d. make it easier to control the growth of health-care expenditures.
B
You might also like to view...
Suppose the equilibrium price in a perfectly competitive industry is $10 and a firm in the industry charges $12. Which of the following will happen?
A) The firm will sell more output than its competitors. B) The firm will not sell any output. C) The firm's revenue will increase. D) The firm's profits will increase.
______ is the difference between net income of foreigners and GDP.
a. NI b. PI c. GNP d. NNP
If the price of a car in the United States is $26,000, and the exchange rate between the dollar and the British pound rises from $1.50 to $2.00 per pound, then the price of the American car in Britain will
A. rise. B. remain the same. C. fall. D. be irrelevant, because the British government will impose restrictions on imports from the United States.
If featherbedding raises the price of output produced by the union workers, it
a. increases employment at the firm and in the industry b. decreases employment at the firm and in the industry c. increases employment at the firm but may decrease it in the industry d. decreases employment at the firm and increases it in the industry e. increases employment at the firm but reduces the number of firms so that there is no net effect on industry employment