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Question
Which is an unintended consequence of government caps on Medicare and Medicaid reimbursements?
a. Patients in these programs pay significantly more out-of-pocket than do insurance enrollees.
b. It forces physicians and medical centers to raise prices for other procedures that are not covered by these programs.
c. The price ceiling on medical procedures spills over to patients who are not program participants, enabling them to unconsciously reap the benefits of government price controls.
d. The supply of health care increases, lowering prices for most consumers in the market.
e. Since healthcare demand is very inelastic, the government price ceiling becomes nonbinding.
Answer
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Related questions
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The economic entity most likely to engage in price gouging is
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What will an individual do differently as a buyer in the black market in the long run?
a. He or she will substitute away from the product.
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What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
a. Prices in the legal market in the community with a binding price ceiling will rise.
b. Prices in the legal market in the community with a binding price ceiling will fall.
c. There will be shortages in the community with a binding price ceiling.
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b. The binding price ceiling will discourage patients from obtaining the drugs they need.
c. The binding price ceiling will increase the likelihood that consumers will obtain needed drugs on the black market.
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Q:
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