Economists classify health care as:
A) an inferior good.
B) a normal good.
C) a good with many close substitutes.
D) a good whose quantity changes considerably with a change in price.

Question

Quizplus · Accepted Answer

Health care is considered a normal good because as people's incomes increase, they tend to spend more on health care. This is in contrast to inferior goods, where as income increases, demand for the good decreases. Health care is also not a good with many close substitutes, as there are limited alternative options for medical treatment. While the quantity demanded of health care may vary with changes in price, it is not considered to change considerably.

Economists Classify Health Care As