As a result of moving more decision making from the periphery of the organization toward the center, typically
a. the flow of information to the decision maker that is relevant to the decision should be enhanced
b. the flow of information from the decision maker that is relevant to the decision should be enhanced
c. the incentive structure for the decision maker should be strengthened
d. the incentive structure for the decision maker can be eliminated
QUESTION 2Mid-1960s amendments to the Social Security Act created
a. managed care.
b. Medicare and Medicaid.
c. major medical insurance.
d. Blue Cross and Blue Shield.
e. tax exemptions for health insurance as an employee benefit.
QUESTION 3Society's demand curve for a public good:
a. is given by the horizontal summation of individual demand curves.
b. is given by the vertical summation of individual demand curves.
c. cannot be derived from individual demand curves due to the nature of a public good.
d. is given by the average citizen's individual demand curve.
QUESTION 4As a result of moving more decision making from the center toward the periphery of the organization, typically
a. the flow of information to the decision maker that is relevant to the decision should be enhanced
b. the flow of information from the decision maker that is relevant to the decision should be enhanced
c. the incentives to make good decisions should be strengthened
d. the procedures for the flow of information that is relevant to the decision can be relaxed
QUESTION 5A prepaid hospital plan created by BaylorHospital for a group of Dallas public school teachers in 1929 is considered the forerunner of what was later called
a. managed care.
b. Blue Cross.
c. Blue Shield.
d. the health maintenance organization.
e. major medical insurance.
QUESTION 6The free-rider problem of public goods refers to:
a. individuals' refusal to pay taxes.
b. individuals' attempts to hide their preferences for collective goods and to avoid paying for them.
c. individuals' over-use of collective goods.
d. the inelasticity of individuals' demands for public goods.
QUESTION 7As a result of moving more decision making from the center toward the periphery of the organization, typically
a. the flow of information to the decision maker that is relevant to the decision should be enhanced
b. the flow of information from the decision maker that is relevant to the decision should be enhanced
c. the incentives to make good decisions should be strengthened
d. the incentives to make good decisions should be weakened
QUESTION 8Early in U.S. history health insurance was provided to cover
a. income loss due disability or disease.
b. hospital expenses.
c. routine physicians' services.
d. the catastrophic cost of medical care including hospitalization and physicians' services.
e. medical costs due to specific diseases such as tuberculosis and alcoholism.
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