The merger of two community hospitals located in the same geographic market is called

The merger of two community hospitals located in the same geographic market is called
 a. vertical integration.
  b. horizontal integration.
  c. a leveraged buyout.
  d. a conglomerate merger.
  e. a real shame since one of the hospitals will likely close.

QUESTION 2

Two goods, X and Y, are called substitutes if
 a. an increase in PX causes more Y to be bought.
  b. an increase in PX causes less Y to be bought.
  c. an increase in PY causes less Y to be bought.
  d. an increase in income causes more of both X and Y to be bought.

QUESTION 3

The features of the M-Form of firm organization are
 a. divisions have difficulty responding to market changes
  b. it is easier to maintain customer relationships
  c. coordination across divisions is simple and does not take much management time
  d. evaluating employees is easier because managers typically are similarly trained

QUESTION 4

Using the physician-control model to explain hospital behavior leads to which of the following conclusions?
 a. Other medical inputs tend to be over used to maximize physicians' productivity.
  b. The use of operating rooms will be maximized with little excess capacity.
  c. Physicians will strive to utilize the nursing staff efficiently.
  d. All investment decisions will be based on optimal resource use.
  e. All of the above are conclusions of the physician-control model.

QUESTION 5

Consider the two statements: I. X is an inferior good. II. X exhibits Giffen's Paradox. Which of the following is true?
 a. I implies II, but II does not necessarily imply I.
  b. II implies I, but I does not necessarily imply II.
  c. I and II are statements of the same phenomenon.

QUESTION 6

The features of the M-Form of firm organization are
 a. divisions can respond more easily to change
  b. it is difficult to maintain customer relationships
  c. coordination across divisions is simple and does not take much management time
  d. evaluating employees is easier because managers typically are similarly trained

QUESTION 7

The predominate organizational form for U.S. hospitals is not-for-profit. Why?
 a. The profit motive corrupts human behavior.
  b. For-profit hospitals do not provide charity care.
  c. Private not-for-profit hospitals engage in most of the medical research.
  d. The not-for-profit form provides the most benefits to physicians.
  e. All of the above.

QUESTION 8

If an individual buys only two goods and these must be used in a fixed relationship with one another (e.g., coffee and cream for a coffee drinker who never varies the amount of cream used in each cup), then
 a. there is no substitution effect from a change in the price of coffee.
  b. there is no income effect from a change in the price of coffee.
  c. Giffen's Paradox must occur if both coffee and cream are inferior goods.
  d. an increase in income will not affect cream purchases.