Which Regulatory Method Does Not Create a Moral Hazard with Respect

question 11

Multiple Choice

Which regulatory method does not create a moral hazard with respect to cost containment?

• A) average-cost pricing
• B) rate-of-return regulation
• C) price-cap regulation

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Definitions:

Academic stress

The emotional, physical, or psychological strain or tension related to academic demands and pressures.

Aptitude test

An examination designed to measure an individual's ability to develop skills or acquire knowledge in a specific field or discipline.

Basic training

Initial training provided to new military personnel, focusing on physical fitness, basic combat skills, and military discipline.

Placebo

A substance or treatment with no therapeutic effect, often used in clinical trials as a control to test the efficacy of treatments.