Economic Theory Suggests That Controlling Health-Care Costs Through Rules and Regulations

question 93

Multiple Choice

Economic theory suggests that controlling health-care costs through rules and regulations imposed by the government or another third party is generally

• A) more effective than using competition and the choices of consumers spending their own money to control costs.
• B) less effective than using competition and the choices of consumers spending their own money to control costs.
• C) only workable if the entire health-care sector is socialized (operated by the government).
• D) possible to implement successfully because these rules and regulations tend to be in harmony with the interests of both consumers and health-care providers.

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Definitions:

Two-Way Classification Design

A research design that involves two factors (independent variables), with each factor usually having multiple levels, for the purpose of analyzing how they interact with each other in influencing a response variable.

Non-Directional Dependent Samples Z-Test

A statistical test used when comparing the means of two related samples to determine if there is a significant difference without predicting the direction of the difference.

Randomized Block Design

An experimental design that divides subjects into blocks based on a characteristic before randomly assigning treatments within these blocks to reduce variation and increase the accuracy of the results.

Degrees of Freedom

The amount of separate parameters or data points that can be attributed to a statistical distribution.