Health Services Research
Textbook Exam Questions
Course Introduction
Health Services Research is a multidisciplinary field that examines how people access healthcare, the costs involved, and the outcomes delivered by health systems. This course explores the methods and approaches used to evaluate healthcare delivery, analyze the effectiveness and efficiency of health services, and inform policy decisions aimed at improving population health. Students will learn about research design, data collection, and analysis techniques specific to health services, as well as the social, economic, and organizational factors influencing healthcare systems. Through case studies and real-world examples, the course highlights strategies for improving quality, accessibility, and equity in healthcare.
Recommended Textbook Health Economics 6th Edition by
Rexford E. Santerre
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240 Verified Questions
240 Flashcards
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Chapter 1: Introduction
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Sample Questions
Q1) Which of the following best describes productive efficiency?
A) Producing a medical service at the lowest possible cost.
B) Constructing a new medical facility to exactly offset a market shortage of such services.
C) Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her.
D) None of the above.
E) More than one of the above statements is true.
Answer: A
Q2) Which of the following accounts for the greatest amount of health care spending?
A) Public health
B) Physician services
C) Prescription drugs
D) Nursing home care
E) Hospital services
Answer: E
Q3) Physicians are a scarce resource in health care markets.
A)True
B)False
Answer: True
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Chapter 2: Health and Medical Care: an Economic Perspective
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Q1) The concept of _______ helps explain why some people choose not to visit their primary care physician every day.
A) inseparability
B) human capital
C) diminishing marginal utility
D) process quality
E) absolute income hypothesis
Answer: C
Q2) Which of the following is not a characteristic of medical care that distinguishes it from other goods?
A) Investment
B) Inventory
C) Intangibility
D) Inconsistency
E) Inseparability
Answer: A
Q3) Better macroeconomic conditions have a positive overall impact on health.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Cost and Benefit Analysis
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Q1) Failure to achieve the maximum total net societal benefit (TNSB) results in some amount of _______.
A) deadweight loss
B) negative TNSB
C) increasing opportunity costs
D) unnecessary direct costs
E) diminishing marginal productivity
Answer: A
Q2) Rationality implies that people will always make the correct choice.
A)True
B)False
Answer: False
Q3) The _______ equates the value of a life to the market value of the output produced by an individual during his / her expected lifetime.
A) willingness-to-pay approach
B) cost-benefit approach
C) cost-effectiveness approach
D) human capital approach
E) cost-utility approach
Answer: D
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Chapter 4: Health Care Systems and Institutions
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Q1) Germany's health care system can be best described as _______.
A) national health insurance
B) socialized health insurance
C) managed competition
D) public contracting
E) pluralistic
Q2) Switzerland's health care system can be best described as _______.
A) national health insurance
B) socialized health insurance
C) managed competition
D) public contracting
E) pluralistic
Q3) The purchase of insurance eliminates the risk of financial loss for all parties.
A)True
B)False
Q4) Fee-for-service reimbursement systems help reduce health care expenditures.
A)True
B)False
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Chapter 5: The Demand for Medical Care
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Q1) The _______ refers to how much more or less of a product consumers buy when its price changes.
A) intensive margin
B) extensive margin
C) nominal demand
D) effective demand
E) fuzzy demand
Q2) As consumers purchase more medical care, the marginal utility per dollar spent on medical care increases.
A)True
B)False
Q3) Insurance _______ the price for medical care, thereby _______ the demand for it.
A) increases; decreases
B) decreases; decreases
C) increases; increases
D) decreases; increases
E) None of the above
Q4) Demand for most medical services in the U.S. has been found to be inelastic.
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) Individuals with higher annual incomes possess a greater incentive to purchase more comprehensive health insurance coverage.
A)True
B)False
Q2) If Sarah has an income of $50,000 when healthy, and faces a probability of 0.15 of losing $10,000 of this due to an illness, what is her expected income?
A) $17,500
B) $40,000
C) $48,500
D) $44,000
E) $16,000
Q3) Insurance premiums determined by a _______ are based on the risk characteristics of the entire membership.
A) loading charge
B) experience rating
C) staff model
D) group model
E) community rating
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Chapter 7: Medical Care Production and Costs
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Q1) Short-run average variable costs decrease initially, but then begin to rise due to diminishing marginal productivity of labor.
A)True
B)False
Q2) _______ reflect the alternatives given up by using resources to produce medical services.
A) Marginal costs
B) Fixed costs
C) Explicit costs
D) Implicit costs
E) Variable costs
Q3) 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
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Chapter 8: Structure, Conduct, Performance, and Market Analysis
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Sample Questions
Q1) 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
Q2) A decrease in the demand for medical care will cause the real hourly wage of physicians to increase.
A)True
B)False
Q3) If the market price is greater than the marginal cost, a profit-maximizing firm will choose to produce less.
A)True
B)False
Q4) An increase in consumer income will lead to an increase in the quantity of medical care supplied.
A)True
B)False
10
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Chapter 9: Government, Health, and Medical Care
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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) Penalties levied on consumers for the purchase of "Cadillac" health insurance plans are meant to correct for the positive externalities associated with these plans.
A)True
B)False
Q3) Industrial pollution is an example of _______.
A) positive demand-side externality
B) negative supply-side externality
C) no externality
D) negative demand-side externality
E) positive supply-side externality
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Chapter 10: Government As Health Insurer
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Q1) If a physician is currently operating at full capacity, an increase in Medicare reimbursement rates could lead to decline in access for privately insured patients.
A)True
B)False
Q2) "Crowding out" due to an expansion of Medicaid requirements is best described by which of the following?
A) A family chooses to remain covered under employer-sponsored private health insurance.
B) An uninsured family chooses to enroll in Medicaid due to a low household income.
C) A family newly eligible withdraws from an employer-sponsored private health insurance and enrolls in Medicaid.
D) both b and c
E) none of the above
Q3) The Diagnosis-Related Groups System is a prospective payment system used by Medicare to reimburse physicians for medical care.
A)True B)False
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Page 12
Chapter 11: The Private Health Insurance Industry
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Q1) Health insurance mandates may result in market inefficiencies if the marginal cost of additional coverage exceeds the marginal benefit received.
A)True
B)False
Q2) _______ occurs when high-risk individuals subscribe to an insured group of low-risk individuals.
A) Moral Hazard
B) Asymmetric Information
C) Rationality
D) Scale Economies
E) Adverse Selection
Q3) Scale economies may serve as a barrier to entry in the private health insurance market by mandating a tiered benefit system.
A)True
B)False
Q4) An increased HMO presence in insurance markets will likely increase premiums for consumers.
A)True
B)False
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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) Over the past thirty years, the absolute number of physicians has _______ while the physician-to-population ratio has _______.
A) decreased; decreased
B) decreased; increased
C) increased; remained stable
D) increased; increased
E) increased; decreased
Q3) _______ refers to the exploitation of asymmetric information to increase demand for physician services.
A) Physician inflation rate
B) Supplier-induced demand
C) Fee-for-service
D) Market equilibrium
E) none of the above
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Chapter 13: The Hospital Services Industry
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Sample Questions
Q1) _______ relates to productivity or quality improvements observed over time irrespective of the quantity produced.
A) Sunk costs
B) System affiliation
C) Scale economies
D) Scope economies
E) Learning-by-watching
Q2) The managerial expertise model helps to explain why executives of non-profit hospitals may be overcompensated.
A)True
B)False
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
Q4) Certificates of need promote price competition amongst hospitals.
A)True
B)False
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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) The U.S. government decreases competition within the pharmaceutical industry through the issuing of patents.
A)True
B)False
Q3) Patents award pharmaceutical firms the sole right to produce a product for _______ years and _______ the financial incentive for firms to develop new drugs.
A) 25; increase
B) 18; decrease
C) 20; increase
D) 15; increase
E) 25; decrease
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Chapter 15: The Long-Term Care Industry
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Sample Questions
Q1) Prospective payment systems _______ costs, _______ quality, and result in _______ severe patient case-mixes.
A) raise; diminish; more
B) raise; improve; less
C) decrease; improve; more
D) raise; improve; more
E) decrease; diminish; less
Q2) Which of the following has been shown to discourage competition in the long-term care industry?
A) Certificates of need
B) Sunk costs
C) Scale economies
D) Predominance of Medicaid
E) None of the above
Q3) Which of the following might cause an increase in the demand for long-term care?
A) Aging population
B) Increased prevalence of HIV
C) Advances in medical technology
D) Increased utilization of primary care
E) Increased health
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Chapter 16: Health Insurance Reform
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Sample Questions
Q1) Which of the generic health plans would contain costs through highly competitive insurance markets?
A) Managed competition
B) National health insurance
C) Medical savings accounts
D) Individual mandates
E) Both a and d
Q2) Which of the following is a generic health plan proposed for health reform?
A) Medical savings accounts
B) Third-party payers
C) Resource-based relative value system
D) Diagnosis-related groups
E) Fee-for-service
Q3) A national health insurance plan would provide significant cost advantages through scale economies.
A)True
B)False
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