Adam and Jon Are the Only Players Playing in a Local

question 26

Multiple Choice

Adam and Jon are the only players playing in a local golf tournament.They can either practice for 5 hours or not practice at all.Practice has both direct monetary costs and opportunity costs.Their scores for an 18-hole round of golf with and without practice are shown in the table.Total prize money is $12,000.Two possible reward structures exist.In Plan A,the low score wins $10,000,second place wins $2000,and a tie results in $6000 each.Plan B requires a player to score 71,or less,for first place,72 to 80 is considered second place.The $10,000 will be split between those with a 71 or lower score,with a guaranteed minimum of $2000.The $2000 for second will be split between those with a score between 72 and 80.
-Refer to the information above.Under the reward structure of Plan B,

• A) a positional arms race will develop.
• B) a positional externality exist.
• C) the prisoner's dilemma is eliminated.
• D) a positional arms race might develop.
• E) the quality of play,as measured by scores,is improved.

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Definitions:

Quantitative Glucose Test

A diagnostic test that measures the precise amount of glucose in a person's blood.

Fraudulent Coding

Involves incorrect or deceptive medical coding practices intended to unjustly increase reimbursement from healthcare payers.

Code Linkage

Analysis of the connection between diagnostic and procedural information in order to evaluate the medical necessity of the reported charges. This analysis is performed by insurance company representatives.

Diagnostic

Pertaining to the identification of the nature or cause of a health problem through examination, testing, and analysis.