The Purpose of a Performance Indicator Is to Provide an Operating

question 19

True/False

The purpose of a performance indicator is to provide an operating measure for not-for-profit health care organizations that is equivalent to income from continuing operations of for-profit health care organizations.

---

Definitions:

Utility Maximization

The economic principle that consumers attempt to get the greatest satisfaction possible from their purchases and consumption, given their limited resources.

Rational Consumer

An individual who seeks to maximize their utility or satisfaction from consumption under their budget constraints.

Utility Maximization

A principle in economics that suggests individuals or firms seek to allocate their resources in a way that maximizes their satisfaction or utility.

Marginal Utility

The additional satisfaction or benefit a consumer receives from consuming an additional unit of a good or service.