Finkelstein and McKnight (2008) provide an empirical estimate of the benefits to seniors of the 1965 introduction of Medicare. Which of the following statements is true concerning the results of this study?
a. There is evidence of a significant reduction in mortality from specific causes (e.g., cardiovascular disease) and the mortality rates of certain vulnerable population groups (e.g., non-whites).
b. The introduction of Medicare in 1965 played an essential role in the decline in mortality rates for the elderly over the following decade.
c. The real impact of the introduction of Medicare was on the reduction in out-of-pocket health care spending for households faced with catastrophic events (those in the top 25 percent of spenders).
d. The long-run benefits of Medicare may be due to encouraging the use of preventive care to control chronic illnesses.
c. The real impact of the introduction of Medicare was on the reduction in out-of-pocket health care spending for households faced with catastrophic events (those in the top 25 percent of spenders).
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Endogenous growth theory attempts to
A) replace the Solow model with a model in which money growth plays a key role. B) explain how societies can more easily reach the "Golden Rule." C) show how population growth reduces capital and output. D) explain why productivity changes.
Refer to the accompanying table. ________ has the comparative advantage in making pizza, and ________ has the comparative advantage in delivering pizza. Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015
A. Corey; Corey B. Pat; Corey C. Pat; Pat D. Corey; Pat
If a monopolist is operating at an output level where marginal revenue is positive, the firm:
A. could raise revenues by raising prices. B. can always increase profits by lowering its price. C. is operating on the elastic portion of its demand curve. D. has maximized total revenues.
Suppose a firm wanted to go out of business. The firm sells all its assets and pays off everything it owes to creditors. The stockholders would receive
A) nothing. B) their annual dividend payment. C) one half of the funds; the other half of the funds goes to bondholders. D) the rest of the funds, after everyone who has a claim against the firm is paid.