Economics of Healthcare Test Questions
Course Introduction
Economics of Healthcare explores the fundamental principles and analytical tools applied to the healthcare sector, addressing the allocation of resources, the behavior of healthcare providers and consumers, and the impact of policies on cost, quality, and access. The course examines topics such as insurance markets, healthcare financing, market failures, the role of government, and the evaluation of healthcare reforms. Through economic models and real-world examples, students gain insights into critical issues like rising healthcare costs, efficiency, equity, and the challenges of improving healthcare systems worldwide.
Recommended Textbook
Health Economics and Policy 5th Edition by James
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14 Chapters
193 Verified Questions
193 Flashcards
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Page 2
W. Henderson
Chapter 1: Usmedical Care: A System in Transition
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/62114
Sample Questions
Q1) Economists use the term "marginal" to describe costs and benefits
A)that are minimal and hardly worth noting.
B)that are incremental and thus relevant to decision making.
C)that are noteworthy but not the most important.
D)whose importance can be minimized through hard work.
E)none of the above.
Answer: B
Q2) Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called
A)price discrimination.
B)cost-shifting.
C)categorical costing.
D)reprehensible and unethical.
E)creative accounting.
Answer: B
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Chapter 2: Using E Conomics to Study Health Care Issues
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18 Verified Questions
18 Flashcards
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Sample Questions
Q1) An inferior good
A)has a negative income elasticity.
B)is one where the demand curve shifts to the left when income goes up.
C)exists only in theory.
D)is a low-quality good.
E)Both a and b are true.
Answer: E
Q2) The price of services at Urban General falls by 10 percent.
A)Quantity demanded at Urban General increases by 15.0 percent.
B)Quantity demanded at Urban General increases by 1.5 percent.
C)Quantity demanded at St.Elsewhere rises by 3.5 percent.
D)Quantity demanded at St.Elsewhere falls by 5.0 percent.
E)Quantity demanded at Urban General rises by 5.0 percent.
Answer: B
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4
Chapter 3: Analyzing Medical Care Markets
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18 Verified Questions
18 Flashcards
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Sample Questions
Q1) Approximately what percentage of total health care spending goes toward physicians' services?
A)One-tenth.
B)One-fifth.
C)One-fourth.
D)One-third.
E)One-half.
Answer: B
Q2) The government agency that controls the development and availability of new medical discoveries, including pharmaceutical drugs is
A)the Health Care Financing Administration.
B)the Food and Drug Administration.
C)the Centers for Disease Control.
D)the National Institutes for Health.
E)the Federal Emergency Medical Administration.
Answer: B
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Chapter 4: Economic Evaluation in Health Care
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Suppose you are asked to use the standard time trade-off approach to measuring quality of life and are given the following information.An individual is faced with living the remaining 10 years of her life suffering from severe osteoporosis.She reveals that she would be willing to give up four of those years to live the remaining six in perfect health.What is the utility of one year in the chronic health state relative to perfect health?
A)4
B)6
C)0.4
D)0.6
E)There is not enough information to determine the utility of life in this case
Q2) The standard cut-off for cost per QALY is A)equal to per capita income
B)2 times per capita income
C)3 times per capita income
D)4 times per capita income
E)5 times per capita income
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Chapter 5: The De Mand for Health and Medical Care
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14 Verified Questions
14 Flashcards
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Sample Questions
Q1) Factors affecting medical care demand include
A)health status.
B)demographic characteristics.
C)economic standing.
D)physician factors.
E)all of the above.
Q2) Many economists consider medical care a superior good.Which of the following statements is true regarding a superior good?
A)Consumers want more of a superior good regardless of its price.
B)When the price of a superior good increases, consumers demand more of it.
C)As consumer income increases a larger percentage of that income is spent on superior goods.
D)A superior good has an income elasticity of demand greater than one.
E)Both c and d are true of superior goods.
Q3) The number one cause of death in the United States in 1998 was A)AIDS.
B)heart disease.
C)cancer.
D)stroke.
E)homicide and accidents.
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Chapter 6: The Market for Health Insurance
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19 Verified Questions
19 Flashcards
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Sample Questions
Q1) Insurers try to minimize moral hazard by
A)only selling policies to individuals with high ethical standards.
B)requiring advance payments of premiums.
C)charging higher premiums to individuals than to groups.
D)charging deductibles and coinsurance.
E)refusing to sell insurance to individuals with chronic illnesses.
Q2) A group of 100 people seek out an insurance company to underwrite health insurance for its members.If expected medical spending for the group is $150,000, what will the average premium be if the health insurance company estimates the premium adding net loading costs of 20 percent?
A)$1,200
B)$1,500
C)$1,800
D)$3,000
Q3) Indemnity insurance
A)reimburses for certain types of losses including fire and theft.
B)in the basis for most of the health insurance coverage in the U.S.
C)is often experience-rated with premiums based on expected losses.
D)is sometimes called "casualty insurance."
E)all of the above.
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Chapter 7: Managed Care
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13 Verified Questions
13 Flashcards
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Sample Questions
Q1) Capitation
A)creates pressures to provide fewer services.
B)is a fixed payment determined in advance to pay for all medically-necessary care.
C)is the maximum allowable fee in a fee-for-service system.
D)shifts financial risk onto patients.
E)Both a and b are correct.
Q2) What is the motivation behind the cost-control features of managed care?
A)To ensure access to specialty care through general practitioner gatekeepers.
B)To influence the way physicians practice medicine by changing the financial incentive structure of medical care delivery.
C)to shift the financial risk onto patients.
D)to eliminate all the guesswork from diagnoses by establishing practice guidelines.
E)to create competition by providing patients with a wide range of providers.
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9
Chapter 8: The Physicians Servic ES Market
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17 Verified Questions
17 Flashcards
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Sample Questions
Q1) Input demand is called derived demand because
A)demand for an input is derived from demand for the product or service it produces.
B)demand for an input is derived from its availability in the input market.
C)demand for the output produced is also derived from consumer demand.
D)input demand actually determines how much output is produced.
Q2) Legislation considered by the 104<sup>th</sup> Congress to restrict legal immigration would have
A)improved employment prospects for native-born Americans.
B)allowed more Americans trained abroad to compete for openings in U.S.residency programs.
C)raised the costs of operating many of the nation's rural and inner-city hospitals.
D)had little effect on medical markets since so few physicians practicing medicine in the U.S are foreigners.
E)surprised many policy makers if it had passed since the 104<sup>th</sup> Congress found it difficult to agree on much of anything.
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Chapter 9: The Hospital Services Market
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14 Verified Questions
14 Flashcards
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Sample Questions
Q1) Consolidation activity in the hospital industry
A)has slowed due to government regulations.
B)has created a large number of nationwide for-profit hospital chains.
C)has occurred almost exclusively at the local level.
D)occurs for reasons that are different from those that cause consolidation in other industries.
Q2) Using the physician-control model to explain hospital behavior leads to which of the following conclusions?
A)Other medical inputs tend to be over used to maximize physicians' productivity.
B)The use of operating rooms will be maximized with little excess capacity.
C)Physicians will strive to utilize the nursing staff efficiently.
D)All investment decisions will be based on optimal resource use.
E)All of the above are conclusions of the physician-control model.
Q3) The predominate organizational form for U.S.hospitals is not-for-profit.Why?
A)The profit motive corrupts human behavior.
B)For-profit hospitals do not provide charity care.
C)Private not-for-profit hospitals engage in most of the medical research.
D)The not-for-profit form provides the most benefits to physicians.
E)All of the above.
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Page 11
Chapter 10: The Market for Pharmaceuticals
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7 Verified Questions
7 Flashcards
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Sample Questions
Q1) The best description of the technological imperative is as follows:
A)If the procedure is available, use it.
B)If the procedure is available, use it if it works.
C)If the procedure is available, use it no matter how much it costs.
D)If the procedure is available and used, use it even if the patient can not afford it.
Q2) Of the new drugs introduced in the United States between 1940 and 1990, what percentage were discovered by U.S.firms?
A)15.
B)30.
C)45.
D)60.
E)75.
Q3) The regulatory agency with oversight responsibility for the pharmaceutical industry is the A)IRS.
B)FDA.
C)SEC.
D)ITC.
E)ATT.
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Page 12
Chapter 11: Confounding Factors
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22 Verified Questions
22 Flashcards
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Sample Questions
Q1) The frequency of malpractice claims against physicians
A)is higher for general practitioners than any other specialty.
B)has increased dramatically since the mid-1980s for all specialties.
C)differs little among specialties.
D)is greater for those specialties that practice high-risk invasive procedures.
E)will continue to soar unless tort laws are reformed.
Q2) According to the National Center for Health Statistics
A)smoking prevalence in the U.S.is declining among both males and females.
B)over 500,000 deaths annually may be attributed to alcohol- and smoking-related illnesses.
C)smoking prevalence among 18-24 year olds is rising.
D)over 20 percent of females and 25 percent of males are regular smokers.]
E)all of the above are true.
Q3) An elderly person between the ages of 75 and 79 spends _____ times as much on health care as a person less than age 19.
A)2.
B)4.
C)5.
D)7.
E)10.
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Chapter 12: Policies That Enha Nce Access
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) One of the most serious weaknesses in the Medicare system is that
A)patients are not able to choose their own physicians.
B)the definition of an episode of illness is too restrictive.
C)it provides poor insurance coverage for unusually long hospital stays.
D)patients must pay a deductible every time they enter the hospital.
E)Part B is voluntary.
Q2) Which of the following statements is true about the Medicaid program?
A)Eligibility standards are uniform across states.
B)The program is totally funded by federal tax revenues.
C)Everyone in the poverty-level population is eligible for benefits.
D)Almost three-fourths of total outlays are for nursing home and home health care for the elderly.
E)All of the above are true.
Q3) The most important source of funding for Medicare is
A)the federal income tax.
B)premiums paid by elders and deducted from their monthly Social Security checks.
C)a 2.9 percent payroll tax paid by all workers, regardless of their age.
D)proceeds from the Medicare Trust Fund.
E)a tax on the health insurance premiums pay by all group plans.
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Page 14
Chapter 13: Policies to Contain Costs
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Sample Questions
Q1) The most important aspect of the 1983 changes to Medicare that introduced diagnosis-related groups (DRGs) was
A)defining 483 categories of illness for treatment.
B)switching from retrospective to prospective payment for hospitals.
C)setting up maximum hospital stays for certain procedures.
D)requiring physicians to seek second opinions before certain surgical procedures are approved.
E)all of these were important changes to Medicare.
Q2) Fuchs (1988) static model of cost savings provides little encouragement for the prospects of savings in medical care.He concludes our best chance for controlling costs may be
A)to limit input prices.
B)to improve efficiency in the production of medical care.
C)to reduce medical care utilization.
D)to increase the use of low-priced inputs and reduce the use of high-priced inputs.
E)all of the above are necessary according to Fuchs.
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Chapter 14: Medical Care Systems Worldwide
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11 Verified Questions
11 Flashcards
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Sample Questions
Q1) One lesson that American policy makers can learn from the health care systems of other counties is
A)people must be willing to accept long waiting lists for expensive services.
B)a government-run system ensures equal access across socio-economic groups.
C)the importance of having a safety valve.
D)the mix between general practitioners and specialists is of little importance.
E)private insurance cannot complement government insurance.
Q2) The Japanese health care system most closely resembles the health care system of _______, from which it was copied.
A)the United States.
B)France.
C)Great Britain.
D)Germany.
E)Canada.
Q3) Which of the following is not a practice of Japanese physicians.
A)Performing a unusually large number of surgeries.
B)Seeing a large number of patients daily.
C)Dispensing medicine to their patients.
D)Accepting gifts of appreciation from their patients for special service.
E)Discharging patients from the hospital after relative short average stays.
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