The Second Largest Proportion of Health Care Expenditures in Canada

question 25

Multiple Choice

The second largest proportion of health care expenditures in Canada is related to physician remuneration. From the four models below, identify the predominant remuneration model that exists for physicians in Canada today.

• A) salary model
• B) blended payment model
• C) fee-for-service model
• D) capitation model

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Definitions:

Price-taker Industry

An industry in which individual firms have no control over the price of their product and must accept the market price set by the forces of supply and demand.

Price-taker Industry

An industry in which individual firms have no control over the price of their product; they "take" the market price as given.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and firms no longer have any incentives to enter or exit the market, resulting in an optimal allocation of resources.