Medical care spending escalates as an individual reaches old age. Which of the following statements is true regarding medical care spending and the elderly?
a. Most of the medical care cost explosion is due to the high cost of treating the elderly.
b. The easy way to control end-of-life spending is to limit use of all but the most cost-effective care to those over the age of 65.
c. The real reason for the increase in medical spending among the elderly is the increase in chronic illnesses as we age and the multiplicity of services available to treat those illnesses.
d. The high cost of acute care spending for the elderly is a major contributing factor in the increase in medical spending.
c. The real reason for the increase in medical spending among the elderly is the increase in chronic illnesses as we age and the multiplicity of services available to treat those illnesses.
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Refer to Figure 28-9. A(n) ________ would be depicted as a movement from A to D to C
A) supply shock, such as rising oil prices, B) implementation of contractionary monetary policy C) increase in short-run aggregate supply D) increase in aggregate demand
Describe the fractional reserve banking system
What will be an ideal response?
Suppose that an industry's long-run supply curve is downsloping. This suggests that:
A. it is an increasing-cost industry. B. relevant inputs have become more expensive as the industry has expanded. C. technology has become less efficient as a result of the industry's expansion. D. it is a decreasing-cost industry.
Suppose that lenders believe that the government will provide assistance if too many of the lenders' borrowers do not pay back their loans. If lenders expect government assistance they will:
A. make more loans to borrowers who are less likely to repay them. B. make fewer loans to borrowers who are less likely to repay them. C. increase the interest rates that they charge borrowers who are less likely to repay loans. D. not change their lending policies because this expectation is not reasonable.