If governments provide free healthcare services,
A) this illustrates that governments can provide healthcare more economically than private firms.
B) output and consumption of other goods will not be sacrificed.
C) resources with alternative uses are allocated to healthcare and there is an opportunity cost of these resources.
D) the opportunity cost of the resources used to supply healthcare is zero.

Question

Quizplus · Accepted Answer

When governments provide free healthcare services, resources that could have been used elsewhere are allocated to healthcare, indicating an opportunity cost.

If Governments Provide Free Healthcare Services