An Empirical Researcher Wants to Identify the Effect of HMO

question 13

Multiple Choice

An empirical researcher wants to identify the effect of HMO membership on health care costs and does so by comparing costs with membership across the states.This approach is best characterized as:

• A) time series analysis.
• B) cross-sectional regression analysis.
• C) a quasi-experiment.
• D) a random trial.

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Definitions:

Utility

In economics, the satisfaction or benefit derived by consuming a product, thus the preference for one product over another.

Market Baskets

A collection of goods and services used to track price changes and economic inflation over time, representing a fixed set of consumer products and services.

Completeness

A principle in consumer theory stating that consumers can rank all possible bundles of goods in terms of preference.

Transitivity

In preferences, it's the principle that if option A is preferred to B, and B is preferred to C, then A should be preferred to C.