During the 1965-2009 period, the price index of healthcare services
A) declined slightly relative to the overall consumer price index.
B) fell by approximately 50 percent compared to the overall consumer price index.
C) increased at twice the rate of the overall consumer price index.
D) rose during a brief period following the passage of Medicare and Medicaid but has been relatively stable since that time.

Question

Quizplus · Accepted Answer

According to the information provided, the price index of healthcare services increased at twice the rate of the overall consumer price index during the 1965-2009 period. Therefore, choice C is the best option. Option A is incorrect because the price index of healthcare services did not decline during this period. Option B is incorrect because it fell by approximately 50 percent compared to the overall consumer price index. Option D is also incorrect because the price index has not been relatively stable since the passage of Medicare and Medicaid.

During the 1965-2009 Period, the Price Index of Healthcare Services