Health care costs have greatly increased in recent years in the United States. This fact alone does not establish an overallocation of resources to health care because:

A. the benefits of health care have also greatly increased in recent years.
B. rising medical care prices have inflated health care costs.
C. the marginal cost of health care exceeds the average total cost of health care.
D. negative externalities sometimes result from additional health care spending.


Answer: A

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