Question

1. Which of the following is not a goal of the Resource Based Relative Value Scale (RBRVS)?

A. To increase participation

B. To increase costs to patients

C. To remove inequities for physicians

D. To limit Medicare part B expenditures for Budget reasons

2. Example of a negative externality market failure is...

A. Buying items that has a percentage going towards charities

B. Getting mandatory immunizations from a job

C. Me getting a flu shot which causes the price of flu shots to go up

D. Bees from my honey operation flying next door and stinging my neighbor's pets

Answer 1

1. The correct answer is B. To increase costs to patients. This is because resource based relative value scale is a system used to determine how much money the physicians should be paid so that the inenquities among physicians are removed and due to this, participation in increased. The goal is to rationalise the expenses and not raise the costs for the patients.

2. The correct answer is D. Bees from my honey operqtion flying next door and stinging my neighbour's pets. A negative externality refers to the situation whereby a production or consumption activity of one individual adversely affects the other individual. In this scenario, the fees are adversely affecting the neighnours. Hence, this is a negative externality.