Related to the Economics in Practice on Page 197

question 8

Multiple Choice

Related to the Economics in Practice on page 197. Which of the following represents a situation in which a school is experiencing economies of scale?

• A) Student enrollment increases by 30 percent and average total cost increases by 50 percent.
• B) Student enrollment increases by 50 percent and average total cost increases by 20 percent.
• C) Student enrollment increases by 25 percent and average total cost decreases by 10 percent.
• D) Student enrollment increases by 30 percent and average total cost does not change.

Distinguish between different forms (CMS-1450, CMS-1500) and their specific uses in the healthcare industry.

Comprehend the fees associated with using a clearinghouse for claims processing.

Familiarize with the terminology related to healthcare payment models, including third-party reimbursement.

Gain knowledge on how to file a third-party claim and the requirements for completing the CMS-1500 form accurately.

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Definitions:

Depreciated Value

The reduced valuation of an asset after accounting for wear and tear, age, or obsolescence.

Market Value

The price at which an asset would trade in a competitive auction setting.

Opportunity Cost

The expense incurred from bypassing the next most favorable choice when a decision is made.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.