Question

When healthcare costs are paid for by

private individuals, the expenses are higher because consumers are more responsive to the prices being charged.

the government through payroll taxes, the employer faces a disincentive to hire more workers.

private insurance companies, the expenses are lower because the insurance company acts like a monopolist.

the government, the expenses are lower because the government acts like a monopolist.

the government, the expenses are higher because the government acts like a monopsonist.

Answer 1

Option D.

Option D. When healthcare costs are paid for by the government, the expenses are generally lower because the government acts like a monopolist which reduces the prices to be paid by the government.