What is the DRG system?
What will be an ideal response?
The diagnosis-related group (DRG) system has been used to classify treatments and fix fees in an effort to reduce the costs of Medicare payments. In this system, a hospital receives a fixed payment for treating each patient and the payment is based on one of the categories in a detailed analysis of several hundred diagnostic categories. One of the problems with the DRG, however, is that it gives hospitals an incentive to reduce resources used for treating patients.
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The concept of inferior goods can be used to show that
A) lower prices signal poorer quality. B) indifference curves can have positive slopes. C) being able to consume more of all goods does not mean that a person will consume more of every good. D) consumers will always buy more of all products if their incomes increase.
If the U.S. demand for German goods increases, then
A. the U.S. current account deficit with Germany will improve. B. Germany will experience currency devaluation. C. the euro will appreciate in value against the U.S. dollar. D. the euro will depreciate in value against the U.S. dollar.
Government policies are coercive, whereas markets are not. This implies that
a. government activity will always be less efficient than market activity b. households cannot maximize utility if they consume any government goods and services c. market transactions result in an equal number of gainers and losers d. self-interest and public interest are always in conflict e. government can provide some goods and services when private markets fail to do so
When President Harry Truman said that he wanted to find a one-armed economist because his economic advisors always said, "On the one hand... and on the other hand... " he recognized that the advice of economists is often open to more than one interpretation. Why is this? a. Economists cannot make up their minds on policy matters
b. Economists agree with each other on all policy issues. c. Economists are aware that tradeoffs are involved in most policy questions. d. Economists are often unable to identify the critical questions involved in policy issues.