Match the Term with the Appropriate Definition or Description

question 23

Multiple Choice

Match the term with the appropriate definition or description:
-Results in higher production costs for the provider of services; may stem from new technology, increased wages of health care personnel, duplication of medical services, unionization or threat of unionization, and inappropriate use of medical care such as defensive medicine and inexperienced providers using services inefficiently

• A)cost-push inflation
• B)demand-pull inflation
• C)diagnosis related groups (DRGs)
• D)Final Report of the Committee on the Costs of Medical Care
• E)gross domestic product (GDP)
• F)health maintenance organization (HMO)
• G)medical malpractice
• H)national debt
• I)Organization for Economic Cooperation and Development (OECD)
• J)"pain and suffering"
• K)quality improvement (QI) initiatives
• L)regional variation in health care costs
• M)Roemer's law
• N)yearly deficit

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Definitions:

Isoquant

A curve illustrating all possible combinations of inputs that yield the same quantity of output, demonstrating how firms can substitute between different factors of production to maintain output levels.

MRTS

The Marginal Rate of Technical Substitution, depicting the rate at which one input can be substituted for another in the production process while keeping output constant.

Fixed-Proportion

A production situation where input factors must be combined in rigidly specified quantities, without the flexibility to substitute one input for another.

Production Function

A mathematical representation that shows the relationship between input factors and the output of a product or service.