In the Author's View, What Is the Best Method of Cost

question 2

Multiple Choice

In the author's view, what is the best method of cost control?

• A)fees set by the government or a cartel of payers negotiating with all providers
• B)fees arising from many different payers negotiating with different groups of providers
• C)high enough co-pays to reduce the volume and expense of care sought
• D)a fee schedule determined annually by the government

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Definitions:

Net Investment

The total amount spent on capital assets, like buildings and machinery, minus depreciation. It reflects the increase in the value of physical assets.

Depreciation

The gradual decrease in the economic value of the capital assets of a firm or nation due to wear and tear, obsolescence, or age, often accounted for in financial statements through depreciation expense.

Disposable Income

Income available to an individual or family after taxes, which can be spent or saved.

Disposable Income

The capital households have left for spending and saving after paying income taxes.