HCAD 770 Exam 1 Question and answers correctly solved 2023(UPDATED)

HCAD 770 Exam 1 Question and answers correctly solved 2023(UPDATED)HCAD 770 Exam 1 Question and answers correctly solved 2023 6 reasons economics is valuable for managers - correct answer - helps them focus on key issues - outlines strategies for realizing goals given the available resources - gives them ground rules for strategic decision making - gives them a framework for making sense of costs - gives them a framework for thinking about value - it sensitizes them to fundamental ideas that affect the operations of every organization cost - correct answer the value of a resource in its next best use marginal or incremental cost - correct answer the cost of producing an additional unit of output synonym for marginal - correct answer additional rational decision making - correct answer choosing the course of action that gives you the best outcomes, given the constraints you face 5 issues healthcare managers face - correct answer - the central roles of risk & uncertainty - the complexities created by insurance - the perils produced by information asymmetries - the problems posed by not for profit organizations - the rapid/confusing course of technical & institutional change information asymmetry - correct answer when one party in a transaction has less information than the other party example of information asymmetry - correct answer Physicians usually understand patients' medical options better than patients do. Unaware of their choices, patients may accept recommendations for therapies that are not cost-effective or, recognizing their vulnerability to physicians' self-serving advice, may resist recommendations made in their best interest. From a manager's perspective, asymmetric information means that - correct answer providers have a great deal of autonomy in recommending therapies adverse selection - correct answer A situation that occurs when buyers have better information than sellers