A problem with cost-benefit analysis is thatnbspthe role of


1. A problem with Cost-Benefit Analysis is that 

a. sometimes subtle distinctions in the alternatives considered as opportunity costs may overstate the benefits of a treatment.

b. the use of expected values employs the statistical law of large numbers and this is not acceptable for individual decision making analysis.

c. the perspective of the one benefitting from the medical service must be included.

d. opportunity cost is measured as the value of the next best alternative foregone.

e. scientists observe people’s behavior to calculate how much individuals are willing to pay for a particular treatment.

2. The role of the government as a provider of health care is

a. unheard of in the U.S.

b. always an improvement on private provision.

c. very common in the U.S.

d. only seen in the Medicare system in the U.S.

e. only seen in the Veterans Affairs health system in the U.S.

3. Two events that were most effective in bringing about licensure of physicians were

a. increases in the number of hospitals and development of effective anesthesia.

b. increases in sepsis and increases in the number of physician assistants.

c. influx of foreign physicians and increase in medical school enrollees.

d. increases in demand for physicians and increases in the number of nurses.

e. development of effective anesthesia and antiseptics.

4. The age-adjusted rate of hospitalization (per 10,000 person years) for chronic lung disease varies much more than the rate of hospitalization for inguinal hernia repair. A good explanation for this variation might be:

a. scientific evidence must be greater for treatment of chronic lung disease than for treatment of inguinal hernia.

b.very few alternatives except surgery and hospitalization exist for inguinal hernia repair compared with alternative treatments for chronic lung disease.

c. physicians must prefer hospitalization for treatment of chronic lung disease.

d. physicians must prefer hospitalization for inguinal hernia treatment.

e. chronic lung disease affects more people than inguinal hernia does.

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Business Economics: A problem with cost-benefit analysis is thatnbspthe role of
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