The growth of medical insurance in general and first-dollar coverage specifically has reduced the marginal cost of treatment to the consumer. Therefore, the current level of medical treatment in the United States is:
A. equal to the efficient level.
B. less than or equal to the efficient level.
C. less than the efficient level.
D. greater than the efficient level.
Answer: D
You might also like to view...
Which of the following statements is true?
A) A buyer who sets a price so that he can purchase any amount of a good he wants at a fixed price, if he has the money to pay for it, is called a price leader. B) All buyers in a perfectly competitive market set prices to compete in their market. C) The relative prices of goods do not affect a consumer's buying decision. D) A consumer in a perfectly competitive market buys only a tiny fraction of the total amount produced.
Refer to Figure 7-3. What is the value of domestic producer surplus without a quota?
A) $5 million B) $15.75 million C) $38.5 million D) $53.5 million
If wages are relatively high, the individual labor supply curve may
A. Become horizontal. B. Bend backward. C. Become vertical. D. Bend outward.
When the price level increases, total planned real expenditures on goods and services falls. All of the following are responsible EXCEPT
A. the real-balance effect. B. the open economy effect. C. the interest rate effect. D. the substitution effect.