In the United States, the bulk of health care spending is paid by health insurance companies
Such a system is also called a third-party payer system where consumers of health care pay a nominal fee and the rest are paid by the health insurance provider. Why might such a system lead to an inefficient outcome?
A) Consumers fearing that excessive use of health care services may lead to a rise in insurance premiums tend to under-consume health care services.
B) Health insurance companies have an incentive to control cost and therefore tend to deny consumers many cutting edge medical treatments.
C) Consumers have an incentive to over-consume health care services because they pay prices well below the cost of providing these services.
D) Physicians concerned that insurance companies may not approve payments tend not to order expensive tests for their patients.
C
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An increase in the expected profit from new capital brings about a
A) movement down along the demand for loanable funds curve. B) movement up along the demand for loanable funds curve. C) rightward shift of the demand for loanable funds curve. D) leftward shift of the demand for loanable funds curve. E) rightward shift of the supply of loanable funds curve.
Total utility increases if one more unit of a product is purchased and marginal utility is positive.
Answer the following statement true (T) or false (F)
Improvements in labor productivity
A) affect the level of wages, but do not affect the rate of economic growth. B) affect the level of profit, but do not affect the rate of economic growth. C) hinder economic growth, because they cause unemployment. D) contribute to economic growth.
Ownership of a single corporation is represented by what investment?
A. Stock. B. Bonds. C. Mutual funds. D. Commercial paper.