The Government Uses Various Tools Within the Realm of Two

question 67

Multiple Choice

The government uses various tools within the realm of two broad categories of public policyallocative policies and regulatory policies. In the context of public policy, laws that fall into the category of allocative policy include

• A) The Balanced Budget Act (BBA) of 1997
• B) The Health Insurance Portability and Accountability Act (HIPAA) of 1996
• C) Laws affecting health plan quality oversight
• D) Laws specifying procedures for health plan handling of consumer appeals and grievances

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Definitions:

Marginal Revenue Product Schedule

A schedule or curve that shows the additional revenue produced by one more unit of an input, such as labor or capital.

Marginal Physical Product

The addition to total output due to the employment of one more unit of a factor, other factors held constant.

Marginal Output

The additional quantity of output that is produced as a result of using one more unit of a particular input, assuming all other factors of production remain constant.

Marginal Physical Product

The change in output resulting from employing one more unit of a particular input, all else being constant.