Suppose That a Central Planner in a Country Determines How

question 132

Multiple Choice

Suppose that a central planner in a country determines how much a physician is paid based on the value of inputs to his or her service.So,a specialist such as an oncologist would be paid more than a primary care physician.Which of the following best describes an incentive problem created by this method of payment determination?

• A) It is difficult for a central planner to know the value of inputs.
• B) It is difficult to coordinate the care provided by a specialist and a primary care doctor.
• C) All else being equal, patients would rather see specialists even for minor problems.
• D) All else being equal, oncologists would adopt a new treatment if it is more expensive.

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Definitions:

Longitudinal Study

Research that follows the same subjects over a period of time, often many years, to observe changes and developments.

Measuring Personality

The process or methods used to quantify individuals' traits, characteristics, or behaviors that make up their personality.

California Schoolchildren

Pupils attending school in the state of California; this term may be used in studies focusing on demographics, education, or health within this specific group.

Longitudinal Study

A research design that involves repeated observations of the same variables over short or long periods of time to detect changes, patterns, or developments.