When Cody went to the physician with a sore elbow, after hearing Cody's symptoms and examining the elbow manually, Cody's physician had two options: (1) prescribe an anti-inflammatory drug and advise Cody to abstain from vigorous physical activity for a period; or (2) advise Cody to undergo a magnetic resonance imaging (MRI) exam, a costly diagnostic procedure. Which of the following physicians is more likely to recommend option 1?
A. A physician who is not concerned about the marginal cost of an MRI.
B. A physician who is part of an HMO.
C. All physicians would recommend option 1.
D. A physician who is compensated under a conventional health insurance plan.
Answer: B
You might also like to view...
Which of the following happens during a recession?
A) Labor demand increases. B) The equilibrium wage rate rises. C) Labor supply falls. D) The equilibrium wage rate falls.
If the opportunity cost of producing more of one good increases as more of that good is produced, then the production method is inefficient
Indicate whether the statement is true or false
Opportunity costs differ among nations primarily because
a. nations employ different currencies. b. nations have different amounts of land, labor skills, capital, and technology. c. nations have different religious, political, and economic institutions. d. the work-leisure preferences of people vary considerably from one nation to another.
When money wages rise, the most significant effect on the aggregate supply curve is that it
A. shifts outward. B. shifts inward. C. becomes flatter. D. becomes steeper.