A Goal of Market-Based Reforms of the Health Care System

question 160

Multiple Choice

A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services.This would tend to ________ economic efficiency by ________ the costs of medical services

• A)increase; increasing
• B)increase; decreasing
• C)decrease; increasing
• D)decrease; decreasing

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Definitions:

Statement of Functional Expenses

A financial report that shows how a nonprofit organization has spent its money on various functions, such as programs, administration, and fundraising.

Program Services Expenses

Costs directly related to the operational activities of a nonprofit organization, including expenses for its principal services offered to the community.

Supporting Services Expenses

Costs incurred by an organization, particularly in the nonprofit sector, that are necessary to support its main operational activities, including management, administrative, and fundraising expenses.

Statement of Activities

A financial report primarily used by non-profits, showing revenue and expenses over a period to reflect changes in net assets.