Solved

Which of the Following Is a Correct Description of the Consequence

Question 81

Multiple Choice

Which of the following is a correct description of the consequence of paying for health care in a particular way?

A) When healthcare costs are paid for by private insurance companies, the expenses are lower because the insurance company acts like a monopolist.
B) When healthcare costs are paid for by the government, the expenses are lower because the government acts like a monopolist.
C) When healthcare costs are paid for by the government through taxes, the employer faces a disincentive to hire more workers.
D) When healthcare costs are paid for by the government, the expenses are higher because the government acts like a monopsonist.
E) When healthcare costs are paid for by private individuals, the expenses are higher because consumers are more responsive to the prices being charged.

Correct Answer: