Health Policy and Economics
Question Bank
Course Introduction
Health Policy and Economics explores the fundamental principles and frameworks that govern healthcare systems, focusing on how economic theories and policies influence the accessibility, quality, and cost of health services. The course examines the roles of public and private sectors, insurance mechanisms, and regulatory environments, as well as global health challenges and reform strategies. Students will analyze the impact of policy decisions on population health outcomes, evaluate methods of health care financing, and consider ethical dimensions of resource allocation, preparing them to critically assess and contribute to effective health policy solutions.
Recommended Textbook
Health Economics and Policy 5th Edition by James W. Henderson
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14 Chapters
193 Verified Questions
193 Flashcards
Source URL: https://quizplus.com/study-set/3136
Page 2
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) Which of the following is not a characteristic that makes medical care different from other commodities?
A)Demand for medical care is irregular.
B)Sellers have more information than buyers.
C)Third-party payers abound.
D)For-profit providers play a major role in delivering medical care.
E)The transaction itself if filled with uncertainty.
Answer: D
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3
Chapter 2: Using E Conomics to Study Health Care Issues
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18 Verified Questions
18 Flashcards
Source URL: https://quizplus.com/quiz/62115
Sample Questions
Q1) Which of the following will not change the demand for office visits to the physician?
A)unusually cold and damp weather during the winter.
B)a change in the price of an office visit.
C)layoffs at the local plant causing a decrease in the number of people with health insurance in the community.
D)television advertising by drug manufacturers to promote a new over-the-counter influenza treatment.
E)they all change the demand for office visits.
Answer: B
Q2) The price of services at St.Elsewhere falls by 10 percent.What happens to the quantity of services demanded at Urban General?
A)Quantity demanded rises by 35.0 percent.
B)Quantity demanded falls by 3.5 percent.
C)Quantity demanded falls by 1.5 percent.
D)Quantity demanded rises by 5.0 percent.
E)Quantity demanded stays the same.
Answer: B
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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) Between 1960 and 1999, out-of-pocket spending on health care changed from almost _____ percent of total spending to less than _____ percent of total spending.
A)10, 30.
B)20, 15.
C)30, 10.
D)50, 15.
E)60, 25.
Answer: D
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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) The first country to require standardized cost-effectiveness analysis before a pharmaceutical drug would be approved for distribution and reimbursement was A)the UK
B)France
C)Sweden
D)Norway
E)Australia
Q2) 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
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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) If health care spending is already on the flat-of-the-curve, it may not be possible to buy improved health status by increasing spending.In this situation, the best way to improve health status may be to
A)increase the availability of government health insurance.
B)invest in biotechnology to determine the genetic factors that improve health.
C)improve life-style decisions by reducing smoking, alcohol consumption, and drug use.
D)improve access to medical care.
E)improve overall educational attainment so people can better follow the advice from the medical community.
Q2) 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) Mid-1960s amendments to the Social Security Act created
A)managed care.
B)Medicare and Medicaid.
C)major medical insurance.
D)Blue Cross and Blue Shield.
E)tax exemptions for health insurance as an employee benefit.
Q2) 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.
Q3) Insurance works best in situations where there is
A)a high probability of a small loss.
B)a low probability of a small loss.
C)a high probability of a large loss.
D)a low probability of a large loss.
E)the level of probability and the size of the loss are irrelevant.
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Chapter 7: Managed Care
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13 Verified Questions
13 Flashcards
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Sample Questions
Q1) Some analysts are skeptical about managed care's long-term ability to control costs.What works for individuals may not work systemwide.This proposition is called
A)stare decisis.
B)a priori reasoning.
C)the Peter Principle.
D)the ceteris paribus condition.
E)the fallacy of composition.
Q2) Which of the following statements is not true about managed care?
A)Empirical evidence suggests that managed care can reduce health care spending.
B)Most of managed care's savings can be traced to reduced hospitalization.
C)There is more emphasis on preventive care in managed care.
D)There is no credible evidence to suggest lower quality of care for any group of patients in managed care arrangements.
Q3) Managed care
A)establishes a system of retrospective payment determined ex ante.
B)combines the responsibilities of payer and provider of medical services.
C)attempts to shift a portion of the financial risk onto providers.
D)attempts to shift a portion of the financial risk onto patients.
E)Both b and c are correct.
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Page 9
Chapter 8: The Physicians Servic ES Market
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17 Verified Questions
17 Flashcards
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Sample Questions
Q1) Starting salaries for female OB/GYNs are higher than those of male OB/GYNs.What is the best explanation for this?
A)Female OB/GYNs have more human capital than male OB/GYNs.
B)Female OB/GYNs are smarter than male OB/GYNs.
C)The demand for female OB/GYNs is greater than the demand for male OB/GYNs.
D)The demand for female OB/GYNs is less than the demand for male OB/GYNs.
E)More males are in OB/GYN residency programs than females.
Q2) What is the equilibrium wage and level of employment under monopsony?
A)W<sub>1</sub> and E<sub>1</sub>.
B)W<sub>2</sub> and E<sub>0</sub>.
C)W<sub>0</sub> and E<sub>0</sub>.
D)W<sub>0</sub> and E<sub>1</sub>.
E)W<sub>0</sub> and E<sub>2</sub>.
Q3) What is the most significant cost of attending medical school?
A)Tuition and fees.
B)Books and incidentals.
C)The income foregone.
D)Room and board.
E)Pain and suffering.
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Page 10
Chapter 9: The Hospital Services Market
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14 Verified Questions
14 Flashcards
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Sample Questions
Q1) The merger of two community hospitals located in the same geographic market is called
A)vertical integration.
B)horizontal integration.
C)a leveraged buyout.
D)a conglomerate merger.
E)a real shame since one of the hospitals will likely close.
Q2) The dominant factor affecting medical care delivery and finance in the 1990s was
A)the Hill-Burton Act.
B)prospective payment for hospitals.
C)creation of Medicare and Medicaid.
D)the explosive growth of managed care.
E)ERISA.
Q3) 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.
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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) Rent-seeking behavior results in
A)increased economic activity by promoting efficiency.
B)lower economic activity by diverting resource to less-productive uses.
C)a more equitable distribution of income and wealth.
D)lower prices throughout the economy.
E)greater income and wealth in the private sector.
Q2) What is the most important factor leading to rising health care costs in the United States since 1980?
A)The increased use of expensive medical technology.
B)The aging U.S.population.
C)The increased cost of malpractice insurance for providers.
D)Rising incomes for physicians.
E)The rising cost of pharmaceutical drugs.
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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Chapter 11: Confounding Factors
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22 Verified Questions
22 Flashcards
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Sample Questions
Q1) 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.
Q2) Which of the following is not a true statement concerning infant mortality in the United States?
A)Low birth weight infants have a better chance of survival in the U.S.than either Japan or Norway.
B)International comparisons of infant mortality rates are difficult to interpret due to different definitions of infant death.
C)Teenage pregnancy and illegitimacy are highly correlated with infant mortality.
D)Infant mortality rates are among the lowest in the developed world.
E)A primary cause of infant mortality is low birth weight.
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Chapter 12: Policies That Enha Nce Access
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/62125
Sample Questions
Q1) Empirical research indicates that the expansion of Medicaid has led to a number of unintended consequences including
A)an increase in the incidence of low-birth weight babies among participants.
B)fewer pregnant women seeking prenatal care.
C)an increase in the birthrate among the eligible population.
D)all of the above.
Q2) Possibly, the most serious flaw in the Medicare system is the fact that
A)the deductible is too high for most elders to afford.
B)it provides no real protection against catastrophic losses resulting from unusually long hospital stays.
C)the definition of an episode of illness can lead to patients paying the deductible more than once during the calendar year.
D)coverage for outpatient drugs is poor.
E)elders are required to pay monthly premiums to participate in Part B.
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14
Chapter 13: Policies to Contain Costs
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Tthe top 25 most frequently used DRGs accounted for approximately _______ percent of all discharges under Medicare.
A)20.
B)30.
C)40.
D)50.
E)60.
Q2) Suppose a price ceiling is set below the current market price.If the goal of the price ceiling is to reduce total expenditures, it will be successful
A)if the percentage change is price is greater than the percentage change in quantity.
B)if the percentage change is price is less than the percentage change in quantity.
C)if the percentage change is price is equal to the percentage change in quantity.
D)under all circumstances.Price ceilings always lower total spending.
E)if the markets remains in equilibrium.
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15
Chapter 14: Medical Care Systems Worldwide
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11 Verified Questions
11 Flashcards
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Sample Questions
Q1) 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.
Q2) Which of the following statements is true about the Canadian health care system?
A)Many Canadians travel to the U.S.in order to receive expensive treatments.
B)Canadians have the option of purchasing private health insurance if they can afford it.
C)Canadian physicians are salaries employees of the provincial health plans.
D)Canadian hospitals have significant excess capacity that is used to treat patients from foreign countries.
E)Canadian physicians are allowed to "balance bill" patients for certain high-cost procedures.
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