What two main types of managed-care organizations (or systems) have been used to control health care costs?
What will be an ideal response?
Managed care organizations are being more widely used to control health care costs, and are of two types. Preferred provider organizations (PPOs) offer discounts to insurance companies and consumers who use them. These organizations require hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan. Health maintenance organizations (HMOs) are prepaid health plans. They provide health care for a specific group of enrolls for a set annual fee per enrolled. HMOs closely monitor health care costs because they operate with a fixed budget. In both cases health care is “managed” by closely watching doctor and hospital actions that might affect the cost of health.
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If price is determined as a multiple of costs, then a firm is using
A) cost plus pricing. B) product line extension pricing. C) peak-load pricing. D) marginal cost pricing.
The role of prices in a market economy is to
a. make producers rich at the expense of consumers b. replicate what society produced in the past c. determine the allocation of resources d. enforce what the government chooses e. force consumers to pay for business profits
Explain why most financial instruments are fairly complex, while at the same time quite standardized.
What will be an ideal response?
Refer to the information provided in Figure 33.3 below to answer the question(s) that follow.
Figure 33.3Refer to Figure 33.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. After trade this country will import
A. 100 pairs of shoes. B. 200 pairs of shoes. C. 300 pairs of shoes. D. 1,300 pairs of shoes.