Under the current structure of Medicare, economic theory indicates that the movement of the baby boom generation into the retirement phase of life will
A) reduce the share of healthcare services paid for by a third party.
B) push both healthcare prices and expenditures upward.
C) increase the incentive of suppliers to provide healthcare services at a low cost.
D) increase the incentive of consumers to economize on their use of healthcare.

Question

Quizplus · Accepted Answer

As the baby boom generation retires, the demand for healthcare services increases, leading to higher healthcare prices and expenditures due to the increased consumption and limited supply.

Under the Current Structure of Medicare, Economic Theory Indicates That