Health Services Research Exam Solutions
Course Introduction
Health Services Research is an interdisciplinary field that examines how healthcare is accessed, the quality and outcomes of care, and the efficiency and effectiveness of health services delivery. This course explores the methods and tools used to evaluate health policies, healthcare systems, and interventions, with an emphasis on understanding the social, economic, and organizational factors that influence health outcomes. Students will gain skills in designing research studies, collecting and analyzing data, and interpreting findings to inform policy decisions and improve the quality, equity, and value of healthcare services within various populations and settings.
Recommended Textbook Health Economics 6th Edition by Rexford
E. Santerre
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16 Chapters
240 Verified Questions
240 Flashcards
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Page 2
Chapter 1: Introduction
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15 Verified Questions
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Sample Questions
Q1) Opportunity costs only occur when there is government involvement in markets such as health care.
A)True
B)False
Answer: False
Q2) Which of the following is not a basic question that must be answered as a result of scarcity?
A) Who should decide the amount of money spent on medical goods and services?
B) Who should receive the medical goods and services that are produced?
C) What mix of nonmedical and medical goods and services should be produced in the macroeconomy?
D) What specific health care resources should be used to produce the chosen medical goods and services?
E) What mix of medical goods and services should be produced in the health economy? Answer: A
Q3) Physicians are a scarce resource in health care markets.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Health and Medical Care: an Economic Perspective
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Sample Questions
Q1) _______ occurs when more patients are treated by a new medical intervention.
A) Income inequality
B) Treatment substitution
C) Social influence
D) Environmental impact
E) Treatment expansion
Answer: E
Q2) The _______ states that an individual's income relative to some social group average impacts health.
A) absolute income hypothesis
B) relative income hypothesis
C) relative position hypothesis
D) income inequality hypothesis
E) absolute position hypothesis
Answer: B
Q3) The reduction in the number of reported polio cases was due largely to government health programs.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Cost and Benefit Analysis
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Sample Questions
Q1) Economists assume people behave rationally. If this were true, then the U.S. Surgeon General would only make decisions that benefit him/her financially.
A)True
B)False
Answer: False
Q2) Which of the following is a limitation of cost-benefit analysis?
A) Difficulty choosing the correct discount rate
B) Difficulty measuring the value of a human life
C) Difficulty measuring the dollar value of gains / losses in utility
D) Both a and c are correct
E) All of the above
Answer: E
Q3) Cost-utility analysis assumes that life-years added due to a medical intervention are homogeneous.
A)True
B)False
Answer: False
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Chapter 4: Health Care Systems and Institutions
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Sample Questions
Q1) Increased consumer copayment requirements may help to reduce health care expenditures.
A)True
B)False
Q2) Fee-for-service reimbursement systems help reduce health care expenditures.
A)True
B)False
Q3) The two major types of public health insurance in the U.S. are _______,
A) Blue Cross and Blue Shield
B) Blue Shield and Medicaid
C) Blue Cross and Medicare
D) Medicare and Blue Shield
E) Medicare and Medicaid
Q4) Which of the following countries provides universal health insurance coverage?
A) United States
B) Germany
C) Switzerland
D) United Kingdom
E) Canada
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Chapter 5: The Demand for Medical Care
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Sample Questions
Q1) As consumers purchase more medical care, the marginal utility per dollar spent on medical care increases.
A)True
B)False
Q2) The _______ refers to how many more or fewer people buy a product when its price changes.
A) intensive margin
B) extensive margin
C) nominal demand
D) effective demand
E) fuzzy demand
Q3) Larger deductible requirements decrease the risk of moral hazard.
A)True
B)False
Q4) Since the demand for medical care is derived from the demand for good health, an increase in income will decrease the demand for medical care.
A)True
B)False
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Chapter 6: The Demand for Medical Insurance: Traditional and Managed Care Coverage
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Sample Questions
Q1) According to John Nyman, the reduction in utility due to the payment of an insurance premium when healthy is less than the increase in utility from an equal income transfer when ill. Which of the following best explains why this is true?
A) As incomes increase, people gain greater utility from additional income.
B) When sick, people no longer behave rationally.
C) As incomes decrease, people gain greater utility from additional income.
D) When healthy, people are able to get more enjoyment from their income.
E) John Nyman is incorrect.
Q2) Consumer-driven healthcare attempts to _______ moral hazard costs by _______ out-of-pocket expenditures faced by consumers.
A) increase; decreasing B) decrease; decreasing C) increase; increasing D) decrease; increasing E) None of the above
Q3) Estimates of the income elasticity of demand for health insurance have found it to be an inferior good.
A)True
B)False
Page 8
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Chapter 7: Medical Care Production and Costs
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Sample Questions
Q1) The _______ of nurses is represented as the change in medical services provided by an additional unit of nurse-labor.
A) marginal product
B) marginal cost
C) average product
D) opportunity cost
E) none of the above
Q2) If a hospital is experiencing diseconomies of scale, it can reduce the average total cost of production by producing a greater quantity of medical services.
A)True
B)False
Q3) Previously paid sunk costs do not factor into most decisions since they can't be recouped.
A)True
B)False
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9
Chapter 8: Structure, Conduct, Performance, and Market Analysis
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Sample Questions
Q1) Product differentiation may stem from which of the following?
A) Location
B) Quality
C) Advertising
D) All of the above
E) None of the above
Q2) The net benefit received through the purchase and consumption of medical care is referred to as _______.
A) economic surplus
B) deadweight loss
C) consumer surplus
D) producer surplus
E) None of the above
Q3) Barriers to entry are not present in which type of industry?
A) Perfect Competition
B) Monopolistic Competition
C) Oligopolies
D) Monopolies
E) None of the above
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Chapter 9: Government, Health, and Medical Care
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Sample Questions
Q1) Suppose a manufacturer of artificial hips required any medical care provider to purchase a specific set of surgical tools along with each artificial hip. This would be an example of a _______.
A) exclusive dealing contract
B) most favored nation clause
C) tying contract
D) price ceiling
E) both a and b
Q2) Suppose a hospital agrees not to charge an insurer a higher price than any other insurer. This would be an example of a _______.
A) exclusive dealing contract
B) most favored nation clause
C) tying contract
D) price ceiling
E) both a and b
Q3) Medicare and Medicaid are both demand-side subsidies.
A)True
B)False
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11
Chapter 10: Government As Health Insurer
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Sample Questions
Q1) _______ Medicaid reimbursement rates will _______ the opportunity cost of treating privately insured patients.
A) Decreasing; increase
B) Increasing; not affect
C) Increasing; decrease
D) Decreasing; decrease
E) Decreasing; not affect
Q2) Increasing access to medical care for low income individuals and households through the expansion of Medicaid eligibility requirements could decrease the quality of medical care received by current Medicaid beneficiaries.
A)True
B)False
Q3) _______ is the principal catalyst for the provision of government intervention in the market for health insurance.
A) Uncertainty
B) Population growth
C) Disease prevalence
D) Imperfect information
E) Health expenditure growth
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Page 12
Chapter 11: The Private Health Insurance Industry
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Sample Questions
Q1) Which of the following reasons might explain why managed care organizations might be able to lower healthcare costs with premiums similar to fee-for-service plans?
A) The lower health care costs of managed care plans may be offset by higher administrative costs.
B) Managed care organizations may set their premiums just below that of their competitors.
C) Managed care organizations may compete with one another based on service offerings rather than price.
D) Both a and c
E) All of the above
Q2) _______ occurs when insurance companies structure plans that provide an incentive for healthier consumers to enroll while discouraging enrollment of higher-risk individuals.
A) Moral Hazard
B) Asymmetric Information
C) Cherry-picking
D) Guaranteed renewability
E) Adverse Selection
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Chapter 12: The Physician Services Industry
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Sample Questions
Q1) An increase in the use of physician extenders would decrease costs of providing medical care.
A)True
B)False
Q2) The _______ suggests that per capita variations in the use of medical care are due to variations in physician preference for particular medical procedures.
A) physician practice hypothesis
B) supplier-induced demand hypothesis
C) enthusiasm hypothesis
D) principal-agent hypothesis
E) small area variation hypothesis
Q3) The _______ suggests that per capita variations in the use of medical care are due to variations in clinical opinions regarding the appropriate amount and type of medical care.
A) physician practice hypothesis
B) supplier-induced demand hypothesis
C) enthusiasm hypothesis
D) principal-agent hypothesis
E) small area variation hypothesis
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Page 14
Chapter 13: The Hospital Services Industry
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Sample Questions
Q1) Which of the following hospital product characteristics has been shown to strongly affect consumer choice?
A) Staff
B) Physical facilities
C) Convenience
D) Experience
E) All of the above
Q2) According to the _______, new technology is most likely to be adopted by research and teaching hospitals first.
A) quantity maximization model
B) quality maximization model
C) managerial expense preference model
D) quality/quantity maximization model
E) utility maximization model
Q3) Demand for hospital services in the U.S. is considered to be _______.
A) inelastic
B) elastic
C) unit elastic
D) income elastic
E) none of the above
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Chapter 14: The Pharmaceutical Industry
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Sample Questions
Q1) The FDA tends to focus more on reducing _______ errors since the victims are _______ identifiable than those from _______ errors.
A) type 1; less; type 2
B) type 2; more; type 1
C) type 2; less; type 1
D) type 1; more; type 2
E) None of the above
Q2) Which of the following accounts for the largest share of expenditures on prescription drugs?
A) Private insurance
B) Medicare
C) Medicaid
D) Medigap
E) Out-of-pocket
Q3) Unconstrained physicians are more inclined to purchase brand-name instead of generic products because they are unaffected financially by the drug choice.
A)True
B)False
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Chapter 15: The Long-Term Care Industry
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Sample Questions
Q1) According to the Scanlon model, a decrease in Medicaid reimbursement rates will lead to _______.
A) increase in the amount of privately-insured patients served
B) increase in the amount of Medicaid patients served
C) decrease in the price charged to privately-insured patients
D) no changes in the patient mix served
E) increase in the price charged to privately-insured patients
Q2) The market demand for long-term care represents a derived demand. A)True B)False
Q3) Which of the following best describes a typical nursing home?
A) For-profit ownership with 200 beds
B) Non-profit ownership with 50 beds
C) For-profit ownership with 100 beds
D) For-profit ownership with 50 beds
E) Non-profit ownership with 100 beds
Q4) Prospective payment systems raise costs, improve quality, and result in more severe patient case-mixes.
A)True
B)False
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Chapter 16: Health Insurance Reform
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Sample Questions
Q1) A primary benefit of mandated health insurance is that employees don't incur any additional cost.
A)True
B)False
Q2) Which of the generic health plans would best eliminate the problem of moral hazard?
A) Managed competition
B) National health insurance
C) Medical savings accounts
D) Individual mandates
E) Both a and c
Q3) _______ has the highest infant mortality rate amongst developed countries.
A) Canada
B) The United States
C) France
D) Germany
E) Sweden
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Page 18