Empirical studies that suggest differences in utilization rates between fee-for-service and managed care plans

a. are unreliable due to statistical biases.
b. conclude that financial incentives are not the reason for differences in the amount of care physician provide.
c. show no differences in health status among patient groups.
d. are unable to differentiate between the impacts due to financial incentives and those due to clinical rules.


D

Economics

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Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 while Pushy Sales continues to comply with the collusive agreement, then Quick Buck's economic profit will be ________.

A. $3,000 B. $6,000 C. $4,000 D. $2,000

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The most important thing about higher labor productivity is that it means

A) we can compete well with other nations. B) we are doing better than anyone else is. C) we can achieve a happier population. D) we can have a higher standard of living.

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In the market for reserves, a lower discount rate

A) decreases the supply of reserves. B) increases the supply of reserves. C) lengthens the vertical section of the supply curve of reserves. D) shortens the vertical section of the supply curve of reserves.

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In the long run, exchange rates

a. are determined by business cycle fluctuations b. are determined by movements of hot money c. will adjust until the price of a bundle of goods is the same in both countries d. will reflect economic fluctuations in both countries e. are still a mystery to most economists

Economics