Question

1. In the United States:
   1. the share of health services financed by government has been rising since the 1960s, and is approximately fifty percent.
   2. the share of health services financed by government has been rising since the 1960s, and is approximately seventy-five percent.
   3. the share of health services financed by government has been falling steadily since the 1960s because of managed care programs, but is still more than half.
   4. the share of health services financed by government has been quite stable since the 1960s at approximately eighteen percent.
   5. the share of health services financed by government has been quite stable since the introduction of Medicare and Medicaid at approximately two-thirds (67%).

2. University of Miami Hospital opens a cancer center in an adjacent abandoned building. Since it was an abandoned building, there are no opportunity costs of this decision.

True

False

3. Economics is often described as:

1. sustainability of “Perfectly Competitive Markets”
2. the “Theory of Choice”
3. decisions made by poor individuals in the face of scarcity (rich don’t face scarcity)
4. creation of equitable, efficient markets
5. a physical science

Answer 1

Correct option:
(A) the share of health services financed by government has been rising since the 1960s, and is approximately fifty percent.

Reason: The healthcare services in US have been financed by the government and their share have been showing an increasing trend since 1960s. With more medical aid services being offered, the share of financing in US is one of the highest in the world. Currently, it stands at more than 50%.

2. False

Reason: There still exists an opportunity cost because the building could have been rented and money could have been made

3. The theory of choice

Reason: Economics is the study of making choices under the given circumstances. It is the study of having scarce resources under unlimited wants.