The cost of contracting that is associated with determining

The cost of contracting that is associated with determining the specifications of the services needed and the prices of those services is called:

Search costs

Monitoring costs

Enforcement costs

Contract costs

When the patient interacts with a provider, the patient incurs. Select all from the list that applies.

Meal costs

Travel costs

Price of the services

Opportunity cost

Wait costs

The present value of a benefit of $10,000 that occurred in four years, discounted at a rate of 8% is:

$6,824

$9,200

$6,800

$7,353

The demand by one individual for the consumption of medical care by another individual is called:

Internal demand

External demand

Private demand

Community demand

  

According to a study by O\' Neill and O\' Neill, in 2005 how many uninsured women between 40 and 64 had gotten a mammogram over the last 2 years?

25%

10%

49%

80%

The demand for medical of an individual is called:

Private demand

External demand

Community demand

Society demand

The cost of reaching an agreement with the provider as to what services are to be provided is called:

Contract costs

Search costs

Enforcement costs

Monitoring costs

On page 95 in the book under exercises, look at question 4 and select which option will give Mrs. Siegal the best value for her money for part A.

Physiotherapy

Pills

On page 95 in the book under exercises, look at question 4 and select which option will give Mrs. Siegal the best value for her money for part B.

Pills

Physiotherapy

	Search costs
	Monitoring costs

Solution

Q3. Calculating Present Value (PV) -

Future Value (FV) = $10,000

Time (n) = 4 years

Rate of interest (r) = 8% or 0.08

PV = FV/(1+r)ⁿ = $10,000/(1+0.08)⁴ = 10,000/(1.08)⁴ = $7,352.94 or $7,353

The present value of a benefit of $10,000 that occured in four years, discounted at a rate of 8% is $7,353.

Hence, the correct answer is option (4).

Q5. As per the study conducted by O\'Neill and O\'Neill in year 2005

In past two years about 80% women with insurance between age group of 40 and 64 years had received a mammogram. On the other hand, in past two years, only 49% of uninsured women between age group of 40 and 64 years had recived a mammogram.

Hence, the correct answer is option (3).