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Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will
A) place downward pressure on the prices of healthcare services.
B) lead to higher healthcare prices.
C) increase the incentive of consumers to economize on their purchases of healthcare services.
D) increase the incentive of healthcare providers to provide their services at economical prices.
Subsidies
Financial support provided by the government to individuals, businesses, or institutions to encourage production or consumption of certain goods or services.
Healthcare Consumers
Individuals who use, are affected by, or are potential users of health care services.
Third-Party Payments
Transactions where a person or entity makes a payment on behalf of another, often seen in healthcare insurance.
- Investigate the relationship between economic theory and third-party payment mechanisms, focusing on their influence on healthcare pricing and spending.
- Investigate the performance of ongoing healthcare policies and initiatives in curbing healthcare expenses.
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Learning Objectives
- Investigate the relationship between economic theory and third-party payment mechanisms, focusing on their influence on healthcare pricing and spending.
- Investigate the performance of ongoing healthcare policies and initiatives in curbing healthcare expenses.
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