Economic analysis indicates that the increasing government expenditures and growth of third-party payments accompanying the Medicare and Medicaid programs
A) reduced the demand for healthcare services.
B) reduced the incentive of consumers to economize on their use of healthcare.
C) increased the incentive of consumers to economize on their use of healthcare.
D) placed downward pressure on the prices of healthcare services.

Question

Quizplus · Accepted Answer

The growth of third-party payments through Medicare and Medicaid reduces the direct cost to consumers, thereby decreasing their incentive to economize on healthcare usage.

Economic Analysis Indicates That the Increasing Government Expenditures and Growth