Question

The fact that most medical care purchases are financed through insurance Group of answer choices has no effect on health care consumption because aggregate costs are the same regardless of payment method. reduces the amount of health care consumed by raising the price of additional units of care. has decreased health care costs and therefore reduced aggregate health care expenditures. increases the amount of health care consumed by reducing the price of additional units of care.

Answer 1

Answer: increases the amount of health care consumed by reducing the price of additional units of care.

Explanation:

When individuals have health insurance, they pay only a certain amount of premiums per period yet when they have a health problem, the insurance company will cover the cost of that problem for the most part.

This means that the insured only have to pay a certain amount for healthcare which reduces their overall cost were they to consume additional units because they would not have to pay for those additional units.