Introduction to Health Policy Exam Practice Tests
Course Introduction
Introduction to Health Policy explores the fundamental principles, frameworks, and processes involved in the creation, implementation, and evaluation of health policies at local, national, and global levels. The course examines the roles of governmental and non-governmental organizations, political and economic factors shaping health policy decisions, and key contemporary issues such as healthcare reform, access, quality, and cost control. Students analyze policy-making models, stakeholder involvement, and ethical considerations, gaining a deeper understanding of how health policies impact population health, health disparities, and healthcare systems.
Recommended Textbook Health Care Economics 7th Edition by
Paul J. Feldstein
Available Study Resources on Quizplus
18 Chapters
357 Verified Questions
357 Flashcards
Source URL: https://quizplus.com/study-set/1434
Page 2
Chapter 1: An Introduction to the Economics of Medical Care
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28481
Sample Questions
Q1) In the graph above,point D is
A)Attainable
B)Efficient
C)Both attainable and efficient
D)Neither attainable nor efficient
Answer: A
Q2) Demand curves are downward sloping because of
A)Increasing marginal cost
B)Diminishing marginal cost
C)Increasing marginal benefit
D)Diminishing marginal benefit
Answer: D
Q3) In the graph above,the equilibrium price is regulated to equal P*.This price is a
A)Price ceiling and the market will have a shortage.
B)Price floor and the market will have a shortage.
C)Price ceiling and the market will have a surplus.
D)Price floor and the market will have a surplus.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The Role of Government in Health and Medical Care
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28482
Sample Questions
Q1) A "natural monopoly" is the result of
A)Government regulation
B)Constant average cost
C)Increasing average cost
D)Decreasing average cost
Answer: D
Q2) Which of the following is an example of an externality in the cigarette market?
A)firsthand smoke
B)secondhand smoke
C)Increase in the price of tobacco
D)Increase in the price of a competitors' cigarettes
Answer: B
Q3) The private market cannot eliminate externalities when
A)Marginal cost is high
B)Marginal cost is low
C)Transaction costs are high
D)Transaction costs are low
Answer: C
Q4) Graph the Marginal Private Cost (MPC)and the Marginal Private Benefit.
Answer: 11ea48be_8914_81ef_b057_a5da371a5ee7_TB2105_00
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Health Policy and the Legislative Marketplace
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28483
Sample Questions
Q1) Which of the following organizations would not support a bill expanding the supply of nurses to hospitals?
A)AMA
B)ANA
C)AHA
D)AAMC
Answer: B
Q2) The AMA would support an
A)Expansion in the number of nurses
B)Expansion in the types of procedures a nurse can perform
C)Both a and b
D)Neither a nor b
Answer: A
Q3) If nurses can perform the same activities as a physician assistant,then these two professions
A)Are substitutes
B)Are compliments
C)Are both supported by the ANA
D)Are both supported by the AMA
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: The Production of Health: the Impact of Medical
Services on Health
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28484
Sample Questions
Q1) The QALYs (quality adjusted life years)measure of health captures the idea that people may be willing to accept
A)Longer life with better health.
B)Shorter life with better health.
C)Longer life with worse health.
D)Shorter life with worse health.
Q2) To allocate resources efficiently,one should consider
A)The relative size of each program
B)The marginal product of each program
C)The average product of each program
D)The level of need in each program
Q3) In the alcohol study by Carpenter and Dobkin,the increase in mortality caused by the 21-year-old age restriction on alcohol consumption primarily affects
A)Only new drinkers
B)Only experienced drinkers
C)Only heavy drinkers
D)Both a and b
E)Both a and c
Q4) Compare cost-utility analysis to cost-effective analysis.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: An Overview of the Medical Care Sector
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28485
Sample Questions
Q1) Which one is in the correct order?
A)The demand for treatment demand for institutions demand for manpower
B)The demand for manpower demand for treatment demand for institutions
C)Demand for institutions demand for manpower demand for treatment
D)The demand for treatment demand for manpower demand for institutions
Q2) Currently,the federal government subsidizes medical education in the form of reimbursement for direct medical education (DME)and indirect medical education (IME)expenditures.These expenditures are reimbursed via Medicaid and Medicare.How would the three markets react to an elimination of this federal subsidy?
Q3) In an effort to control the size of hospitals,the government imposes a legal limit on the number of hospital beds that may be active.This policy will cause some hospitals to reduce the number of beds available.Explain how this policy change affects the three markets in the medical sector.
Q4) What are the prices and quantities in each of the three markets of the medical sector?
Q5) If the government would like to expand access to care,is it better to use a demand policy or a supply policy? Pay particular attention to the elasticity of each curve.
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: The Demand for Medical Care
Available Study Resources on Quizplus for this Chatper
19 Verified Questions
19 Flashcards
Source URL: https://quizplus.com/quiz/28486
Sample Questions
Q1) Education is believed to
A)Increase the demand for health because higher educated people also have higher wages
B)Decrease the demand for health because higher educated people experience a greater return to their health investments.
C)Have no effect on the demand for health
Q2) When studying the demand for health,using expenditures on health to measure utilization is
A)Completely acceptable
B)Is acceptable when price data are present as well
C)Does not capture differences in quality
D)All of the above
E)None of the above
Q3) Discuss the role of physicians on patients' demand for medical services.
Q4) Which of the following items will not increase demand for medical services today?
A)Age
B)Income
C)Education
D)Wealth
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: The Demand for Health Insurance
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28487
Sample Questions
Q1) Insurance coverage is sold at
A)The actuarially fair price
B)The pure premium
C)The loading fee
D)The actuarially fair price + the loading fee
Q2) Calculate the expected return (or expected winnings)in a game where a person wins $1 with the probability of 1/3 ,$5 with the probability of1/6 ,and $0 with the probability of 1/2 .
A)0
B)$1 1 / 6
C)$2 1 / 6
D)$3
Q3) Which of the following types of reimbursement would hospitals support?
A)Indemnity benefit
B)Service-benefit
C)Both a and b
D)Neither a nor b
Q4) Suppose the inverse demand for physician office visits is P = 1000 - 20Q.Now suppose an insurance policy provides a co-insurance rate of 50%.Graph the new demand function with health insurance.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: The Supply of Medical Care: an Overview
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28488
Sample Questions
Q1) Economies of scale
A)Might be more easily realized in an emergency room rather than a physician's office.
B)Depend on the spreading of minimal fixed costs over a number of procedures.
C)Depend on the spreading of high variable costs over a number of procedures.
D)Depend on the spreading of high marginal costs over a number of procedures.
E)Depend on the spreading of high fixed costs over a number of procedures.
Q2) Hospitals compete mainly in a _________ market.
A)Product market
B)Quality market
C)Geographic market
D)Price market
Q3) The marginal cost curve is upward sloping because
A)Total productivity is rising with production
B)Total productivity is falling with production
C)Marginal productivity is rising with production
D)Marginal productivity is falling with production
Q4) Assume that the marginal productivity of an RN is 10 patients and the marginal productivity of an LPN is 2.5 patients.The wage of an LPN is $20 per hour.Find the equilibrium wage for RNs.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Market Competition in Medical Care
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28489
Sample Questions
Q1) Which of the following is not true about health insurance?
A)Has driven up the cost of health care.
B)Creates a moral hazard problem for many people.
C)Makes demand for health care more elastic.
D)Is a means of dealing with the uncertainty that surrounds health care.
Q2) ________ enrollees are the _______ price-sensitive,and they continue to purchase plans with the ______ premiums
A)FFS;most;highest B)FFS;least;highest
C)HMO;most;highest D)HMO;least;lowest
Q3) What does the RAND HMO experiment conclude about the differences in FFS and HMO hospital admissions?
A)HMOs are more risk selective than FFS
B)HMOs are less risk selective than FFS
C)HMOs provide a better incentive to reduce admission rates than FFS
D)HMOs provide a better incentive to increase admission rates than FFS.
Q4) What does the Rand HMO experiment tell us about the effect of HMOs on hospitalized utilization?
Q5) Describe the advantages and disadvantages of capitation payments.
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: The Market for Health Insurance: Its
Performance and Structure
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28490
Sample Questions
Q1) Firms self-insure to
A)Save money on premiums.
B)Avoid state insurance regulation.
C)Create uniform benefit packages for employees who live in different states.
D)All of the above.
Q2) A risk-averse consumer faces a 0.60 probability of health expenditures equal to $10,000 and zero expenditures otherwise.She can purchase a health insurance policy that will cover all her actual health costs for $6,000.It follows that A)She will definitely not buy the health insurance policy
B)She will possibly buy the health insurance policy
C)She will definitely buy the health insurance policy
Q3) Assume the health insurance market is perfectly competitive.If the benefit/premium ratio is 0.90 and the premium is $1,000,how much are administrative cost?
Q4) A flat premium for all risk types will lead to
A)Adverse selection
B)Moral hazard
C)Both a and b
D)Neither a nor b
Page 12
Q5) Explain why insurance companies may be hesitant to increase relative premiums.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: The Physician Services Market
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28491
Sample Questions
Q1) What are the reasons why both the size of medical groups and their numbers have Explain.
Q2) Physicians who accept assignment on their Medicare patients
A)Bill patients for 80% of the allowable fee
B)Agree to forego balance billing
C)Accept the allowable fee for all services
D)Agree to charge private insurance patients the same fees as Medicare patients
E)Both b and c
Q3) A specific opportunity cost of attending medical school is:
A)The tuition fee
B)The foregone income
C)The sleep deprivation and fatigue during arduous internships
D)All of the above
Q4) On average,the training costs (both money and time)for a physician are felt to explain
A)Virtually not at all the high income of physicians
B)Partially the high income of physicians
C)Completely the high income of physicians
Q5) Define defensive medicine and describe what Baicker,Fisher,and Chandra found as the cost of defensive medicine.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: The Market for Hospital Services
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28492
Sample Questions
Q1) The quality of hospitals used by HMOs is on average
A)Greater than non-HMO hospitals
B)Equal to non-HMO hospitals
C)Less than non-HMO hospitals
Q2) Explain why a hospital can be considered a multiproduct firm.
Q3) Over the last 25 years,the number of for-profit hospitals has
A)Exceeded the number of nonprofit hospitals
B)Has declined relative to nonprofit hospitals
C)Has increased by more than 50%
D)Has increased by less than 50%
Q4) Which of the following models of hospital ownership is most likely to over invest in hospital capacity?
A)For-profit hospital
B)Physician-controlled hospital
C)Utility-maximizing hospital
Q5) Explain how Certificates of Need (CON)may be anticompetitive.
Q6) Over the past 20 years,the ability of hospitals to cost-shift has
A)Increased
B)Decreased
C)Remained unchanged
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: The Pharmaceutical Industry
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28493
Sample Questions
Q1) Research and development (R&D)is considered a _____ because _____:
A)Variable cost;more R&D leads to more quantity produced
B)Variable cost;more R&D leads to higher profits
C)Fixed cost;it does not vary with current output
D)Fixed cost;it is related to advertising
Q2) Most pharmaceutical drug discoveries fail to lead to a marketable drug due to
A)Abandonment before reaching Phase III trials
B)Abandonment due to failure during Phase III trials
C)Abandonment for economic reasons despite success during Phase III trials
Q3) Drug after formularies
A)Help manufacturers determine which drugs are efficacious
B)Help salesmen determine what to sell
C)Determine which drugs will be covered by third-party payers
D)Both b and c
Q4) Drugs that treat a small portion of the population are called
A)Small drugs
B)"Me-too" drugs
C)Unique drugs
D)Orphan drugs
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Health Manpower Shortages and Surpluses:
Definitions, measurement, and Policies
Available Study Resources on Quizplus for this Chatper
18 Verified Questions
18 Flashcards
Source URL: https://quizplus.com/quiz/28494
Sample Questions
Q1) Which of the following will occur if labor demand and supply simultaneously increase?
A)An increase in equilibrium wages and ambiguous change in the equilibrium quantity of labor
B)An ambiguous change in equilibrium wages and equilibrium quantity of labor
C)An ambiguous change in equilibrium wages and an increase in the equilibrium quantity of labor
D)A decrease in equilibrium wages and an increase in the equilibrium quantity of labor
Q2) Jefferson County has 200,000 residents.During any given year,2% of the population will develop a medical condition that requires 10 hours of physician treatment.Assuming the average physician works 2,000 hours per year,how many physicians are needed in Jefferson County?
A)6
B)12
C)14
D)20
Q3) Explain how the current market for residencies is anticompetitive and how market competition would correct the current situation.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: The Market for Physician Manpower
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28495
Sample Questions
Q1) Explain how barriers to entry can cause static shortages of health professionals.
Q2) Education,feedback,and surveillance programs are concerned with:
A)Reducing the amount of inappropriate medical care
B)Increasing patient access to the latest medical technology
C)Retaining a qualified hospital staff
D)The low enrollments in medical school
Q3) The American Medical Association helped to erect barriers to entry into the profession to
A)Protect patients from poor-quality physicians
B)Prevent the overproduction of physicians
C)Increase physician rents under the guise of patient protection
D)All of the above
Q4) Explain why barriers to entry,such as additional education and licensing,are preferred to malpractice lawsuits to prevent negligent or low-quality physicians from doing harm.
Q5) Describe how physicians can use price-discrimination to serve both high- and low-income patients.
Q6) Describe how barriers to entry would decrease the quality of care.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: The Market for Medical Education: Equity and Efficiency
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28496
Sample Questions
Q1) The use of fluorine in public tap water to reduce cavities is an example of a
A)Negative externality
B)Positive externality
C)Public good
D)Private good
Q2) The net effect of the externality on welfare is equal to
A)d + f
B)i
C)h
D)i + d + f + h
Q3) Currently,tuition paid by medical students constitutes
A)Less than 5% of total revenue
B)Less than 10% of total revenue
C)Less than 15% of total revenue
D)Less than 20% of total revenue
Q4) On average,medical school subsidies benefit people from
A)Higher-income families most
B)Middle-income families most
C)Lower-income families most
Q5) How do we determine economic efficiency in the supply of medical schools?
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: The Market for Registered Nurses
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28497
Sample Questions
Q1) What are the benefits and cost of a comparable worth-based wage determination system.
Q2) Explain how the introduction of Medicare resolved the issues of "static shortages" in nursing.
Q3) According to Gruber and Kleiner,in-hospital mortality due to a nurses' strike
A)Increased by 19%
B)Decreased by 19%
C)Increased by 6.5%
D)Decreased by 6.5%
Q4) Explain why the ANA would support educational subsidies to attend nursing school.
Q5) Immigrants constitute ______ of the growth in nurses between 2001 to 2008.
A)1/10
B)1/5
C)1/3
D)1/2
Q6) Explain why prior to 1966,the nursing market was experiencing a static shortage.
Q7) Explain how allowing nurses to unionize can guard against hospitals keeping wages artificially low.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: National Health Insurance: an Approach to the
Redistribution of Medical Care
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/28498
Sample Questions
Q1) Hospital services are covered by
A)Medicare Part A
B)Medicare Part B
C)Medicare Part C
D)Medicare Part D
Q2) What are the problems with an employer health insurance mandate?
Q3) The Children's Health Insurance Plan of 1997 provides insurance for A)Infants
B)Pregnant women
C)Low-income children
D)All of the above
Q4) Explain how a comparative effectiveness board could reduce health care cost.
Q5) Physician services are covered by
A)Medicare Part A
B)Medicare Part B
C)Medicare Part C
D)Medicare Part D
Q6) What are the benefits and costs of an individual health insurance mandate.
Q7) Why is deficit financing politically appealing?
To view all questions and flashcards with answers, click on the resource link above. Page 20