Suppose the recipient of a kidney transplant has stated that she would prefer 5 years of perfect ...

Suppose the recipient of a kidney transplant has stated that she would prefer 5 years of perfect health to the 10 years she expects to live with her transplant. For this person, each of her remaining 10 years of life has a QALY value of
 a. .
  b. 2
  c. 5
  d. 10
  e. 50.

QUESTION 2

If bargaining is costless and an externality exists:
 a. an efficient outcome may be reached depending on which party is assigned property rights.
  b. an efficient outcome will be reached regardless of which party is assigned property rights.
  c. an efficient outcome will not be reached without government intervention.
  d. an efficient outcome can never be reached.

QUESTION 3

The components of a well-run incentive compensation scheme include all of the following EXCEPT
 a. evaluating the identified performance measures
  b. demonstrating that supervisors are friendly outside of the work environment
  c. rewarding workers who for meet performance measures
  d. identifying the relevant measures on which to evaluate employees

QUESTION 4

The concept quality-adjusted life year (QALY)
 a. is a multidisciplinary approach to measuring health status.
  b. has little application to medical decision making.
  c. is used extensively in the U.S. to evaluate health care programs.
  d. is used extensively to evaluate medical care resource allocation within government-run programs on fixed budgets, especially in Europe.
  e. none of the above.

QUESTION 5

Externalities between two firms can be internalized if: I. The two firms merge. II. Bargaining costs are zero. III. The externalities affect each firm equally. IV. Marginal costs for both firms are constant. Which statement(s) correctly complete the sentence?
 a. Only II
  b. All except III
  c. I and II, but not III and IV
  d. I and IV, but not II and III

QUESTION 6

The components of a well-run incentive compensation scheme include all of the following EXCEPT
 a. performing random acts of kindness to employees
  b. avoiding rewards for outcomes that are not included in the performance measures
  c. rewarding workers who for meet performance measures
  d. identifying the relevant measures on which to evaluate employees

QUESTION 7

Health insurance features that tend to reduce moral hazard include
 a. deductibles.
  b. coinsurance
  c. copayments
  d. all of the above