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Economists Seem to Favor Which One of the Listed Below

Question 14

Multiple Choice

Economists seem to favor which one of the listed below theories of hospital behavior as the most accurate?


A) Mark Pauly's model of a hospital as a physician workshop.
B) Joseph Newhouse's theory about hospitals being run for the benefit of their managers.
C) Traditional model of the firm/hospital as a profit maximizing entity.
D) AMA definition that asserts that hospitals exist to maximize community benefits.
E) There is no universally "correct" theory, as each of the theories listed above can explain the behavior of at least some of the hospitals quite well, while not necessarily being applicable to absolutely all the hospitals in the U.S.

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