Most Empirical Studies Show That the Cost-Savings Provided by Managed

question 2

Multiple Choice

Most empirical studies show that the cost-savings provided by managed care are accomplished by

• A) better preventive care.
• B) reducing the rate of hospitalization.
• C) denying access to costly specialty care.
• D) switching to generic drugs.
• E) all of the above.

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Definitions:

Marginal Benefit

The enhancement in satisfaction or utility achieved by consuming an additional unit of a product or service.

Consumption

The use of goods and services by households, referring to the final purchase of products for direct use or ownership.

Externalities

Costs or benefits that affect parties who did not choose to incur that cost or benefit.

Produced

Refers to goods or services that have been created as a result of a manufacturing or production process.