Which of the Following Situations Is Most Likely to Create

question 36

Multiple Choice

Which of the following situations is most likely to create an incentive for doctors to provide unnecessary procedures?

• A)a fee-for-service health insurance policy
• B)free market health care
• C)a single-payer system
• D)a health maintenance organization

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Definitions:

Debt-Equity Ratio

A ratio detailing the comparative use of borrowed funds and equity by a company to finance its assets.

Flotation Cost

The total costs associated with issuing new securities, including fees for underwriting, legal advice, and registration.

Initial Cash Outlay

The initial funds and costs required to initiate a project, investment, or venture.

Pre-Tax Cost

The expense or cost incurred by an entity before the deduction of taxes.