Suppose that a central planner in a country determines how much a physician is paid based on the value of inputs to his or her service.So,a specialist such as an oncologist would be paid more than a primary care physician.Which of the following best describes an incentive problem created by this method of payment determination?
A) It is difficult for a central planner to know the value of inputs.
B) It is difficult to coordinate the care provided by a specialist and a primary care doctor.
C) All else being equal, patients would rather see specialists even for minor problems.
D) All else being equal, oncologists would adopt a new treatment if it is more expensive.

Question

Quizplus · Accepted Answer

The Answer of Suppose that a central planner in a country determines how much a physician is paid based on the value of inputs to his or her service.So,a specialist such as an oncologist would be paid more than a primary care physician.Which of the following best describes an incentive problem created by this method of payment determination?
A) It is difficult for a central planner to know the value of inputs.
B) It is difficult to coordinate the care provided by a specialist and a primary care doctor.
C) All else being equal, patients would rather see specialists even for minor problems.
D) All else being equal, oncologists would adopt a new treatment if it is more expensive.

Suppose That a Central Planner in a Country Determines How