Author Question: Prospective payment in the hospital sector a. resulted in the hospital keeping any surplus payment. ... (Read 74 times)

nmorano1

  • Hero Member
  • *****
  • Posts: 598
Prospective payment in the hospital sector
 a. resulted in the hospital keeping any surplus payment.
  b. resulted in the hospital absorbing any loss from the payment.
  c. changed the incentive structure completely.
  d. all of these are true.

Question 2

What tradeoffs are present in the moral-hazard-in-insurance problem?
 a. Full insurance benefits the risk-averse customer but gives him excessive incentives to take care to avoid harm.
  b. Full insurance benefits the risk-averse customer but provides him with no incentive to take care to avoid harm.
  c. Full insurance benefits the risk-averse consumers but does not allow the insurer to extract as much surplus from all types.
  d. Full insurance is beneficial for all consumers, but if sold at an actuarially fair price for the population will draw only the riskiest types.



angrybirds13579

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

D

Answer to Question 2

b



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

For a complete list of videos, visit our video library