Part A- What impact does insurance (or having more beneficial insurance) have on

Question

Part A-What impact does insurance (or having more beneficial insurance) have on a Cost effectiveness Frontier?

a.nothing

b.shifts the frontier to the right

c.shifts the frontier to the left

d.cannot be determined

Part B- On a Cost Effectiveness Frontier graph, Treatment M is above Treatment N so connecting treatment M to treatment N is a downward-sloping line. What can we conclude?

a.Treatment M dominates Treatment N: obvious domination

b.Treatment N dominates Treatment M: obvious domination

c.Treatment M dominates Treatment N: only marginal domination

d.neither treatment is dominated by the other

e.none of the above

Explanation / Answer

1. Insurance will shift the cost effectiveness frontier to the left. option(C)

2. If treatment M is above treatment N and connecting treatment M to treatment N is a downward sloping line. Treatment N dominates treatment M : obvious domination. Option(B)

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