The financing of health care through insurance has
A) decreased absolute total expenditures on health care.
B) resulted in consumers directly paying less than the full price of health care.
C) increased the marginal utility of health care services.
D) made no change in health care consumption.

Question

Quizplus · Accepted Answer

The financing of health care through insurance has resulted in consumers directly paying less than the full price of health care. As a result, individuals may consume more health care services than they would otherwise, leading to increased overall expenditures on health care. This means that B is the correct choice, and A, C, and D are incorrect.

The Financing of Health Care Through Insurance Has