"It is difficult to compare over time health care expenditures, costs, and output." Do you agree or disagree? Why?
What will be an ideal response?
Agree. First, expenditures and costs are not the same thing. A system like Britain's has lower expenditures but not necessarily lower costs since people spend more time waiting for services. Years ago, expenditures were much lower, partially because people suffered and died from ailments that now can be cured. Further, as improvements in health care permit longer lives, health care expenditures will increase. The interrelationships between health care, technology, costs, and expenditures are extremely complicated.
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Crowding out refers to a decline in ________ as a result of an increase in ________
A) government purchases; private expenditures B) government purchases; tax rates C) private expenditures; government purchases D) tax revenues; unemployment
Those who are concerned about balanced budget amendments typically argue that balanced budget amendments
A) cause interest rates to be higher than they otherwise would be. B) would make fluctuations in output around the natural level of output greater. C) would increase spending in a recession. D) would reduce national saving.