As a Result of Moral Hazard

question 164

Multiple Choice

As a result of moral hazard

• A) both physicians and hospitals order more procedures.
• B) physicians and hospital administrators have no incentive to raise costs.
• C) patients increasingly have to worry about the expense of operations and other medical procedures.
• D) both physicians and hospitals have a financial interest in trying to keep hospital costs down.

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Definitions:

Creditors

Individuals or organizations to whom a company or person owes money for services or goods provided.

Capital Deficiency

A financial situation where a company's liabilities exceed its assets, indicating potential insolvency.

Income Ratios

Financial metrics comparing various components of a company's income statement to assess performance and profitability.