LSUS MHA 710 EXAM 1,2,3 AND 4 HEALTHCARE ECONOMICS COMPLETE COURSE NEWEST ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
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LSUS MHA 710 EXAM 1 HEALTHCARE
ECONOMICS NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 100 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
What is “economics”? – ANSWER- A Map for decision making.
Economics analyzes the allocation of scarce resources.
What are some of the specific challenges faced by managers in
healthcare? – ANSWER- 1. The central roles of risk and uncertainty
- The complexities created by insurance
- The perils produced by information asymmetries
- The problems posed by not-for-profit organizations
- The rapid and confusing course of technical and institutional change
What does asymmetric information mean? Can you give an example? –
ANSWER- When one party in a transaction has less information than
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the other party. For example, physicians and other healthcare providers
usually understand patients’ medical options better than patients do.
Unaware of their choices, patients may accept recommendations for
therapies that are not cost-effective or, recognizing their vulnerability to
physicians’ self-serving advice, may resist recommendations made in
their best interest.
What is adverse selection? – ANSWER- A situation that occurs when
buyers have better information than sellers. For example, high-risk
consumers are willing to pay more for insurance than low-risk
consumers are. (Organizations that have difficulty distinguishing highrisk from low-risk consumers are unlikely to be profitable.)
What is the problem of scarcity? – ANSWER- Demand for a good or
service is greater than the availability
What does it mean to say people are assumed to make choices
rationally? – ANSWER- focuses on individuals’ efforts to best realize
their goals, given their resources.
What does it mean to says resources are scarce? – ANSWER- Anything
useful in consumption or production that has alternative uses.
What is opportunity cost? – ANSWER- Potential loss from a missed
opportunity. Passing up the next best choice.
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What does “marginal” refer to? – ANSWER- The examination of the
costs and benefits through a small change in the production of goods
What does efficiency refer to? – ANSWER- No way to rearrange
production of goods in a way that makes one person more better off
without making somebody else worse off. How well an economy uses
scare resources to meet the needs/wants of their customers
How do positive economic statements differ from normative economic
statements? – ANSWER- Positive economics is objective while
normative economics is subjective. Facts/ What is vs What should be
How can economics be applied to the health sector? – ANSWERDescribe, Explain, Evaluate, Plan
As we progress through the chapters, think about the special
characteristics that apply to the health sector that might limit the
applicability of traditional economic models. – ANSWER- Social
determinants of health, few insurance companies that providers rely on,
not a perfectly competitive market
How are healthcare products both outputs and inputs? Can you give an
example? – ANSWER- Products (goods and services are considered
products) are commonly both inputs and outputs. For example, a
surgical tool is an input into a surgery and an output of a surgical tool
company. Similarly, the surgery itself can be considered an output of the
surgical team or an input into the health of the patient.
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LSUS MHA 710 EXAM 2 HEALTHCARE
ECONOMICS NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 100 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Which of the following would likely lead to the greatest
improvement in the health status of the population in the United
States? – ANSWER- Improved lifestyles changes
The accompanying diagram depicts the relationship between
health status and medical care spending for a particular country.
Assume the current spending level is S1 on TP1. All of the
statements below are true? – ANSWER- S1 levels of spending
are often described as spending on the flat of the curve
When measuring the effectiveness of a treatment, surrogate
measures reflect clinical efficacy and include: – ANSWERbone-mass density (BMD)
The direct costs in an economic evaluation include all of the
following except: – ANSWER- reduced productivity at work
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Under which of the following circumstances is the principalagent relationship likely to be most problematic? – ANSWERBetween surgeons and patients
Kindig and Stoddart (2003) defined population health as “health
outcomes of an entire population, including the distribution of
such outcomes within a group of individuals.” – ANSWER- True
Which of the following is not the World Health Organization
(WHO) index to measure health system performance? –
ANSWER- Morbidity
Which of the following is not part of the three dimensions of
health care delivery known as the “triple aim”? – ANSWERExpanding health insurance
Mortality rate and morbidity are the most popular metrics used
to evaluate population-based health outcomes – ANSWER- True
From 2001 to 2011, life expectancy for the total U.S population
increased from: – ANSWER- 77.2 to 78.7 years
Whites have experienced an increase in life expectancy that is
more than twice that of Blacks – ANSWER- False
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Which ethnic group has the highest life expectancy in the United
States? – ANSWER- Hispanics
People with higher income are less likely to have better health
outcomes and have a higher mortality rate – ANSWER- False
The rate at which members of a group are newly diagnosed with
a disease is called – ANSWER- morbidity rate
Teen pregnancy is a concern among public health officials and
policy makers because of the follow associated problems except
for – ANSWER- poverty
Obesity prevalence in the United States is the highest in the
developed world and has worsened since the 1960s – ANSWERTrue
The United States has the highest rate of low-birth-weight
infants than other developed countries – ANSWER- False
Perinatal mortality is defined as late fetal death plus deaths in
the first __ days after birth – ANSWER- 30
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LSUS MHA 710 EXAM 3 HEALTHCARE
ECONOMICS NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 100 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Which of the following would increase the supply of physicians?
a. Increasing the cost of attending medical school
b. More scholarships and grants to cover medical school tuition
c. Increasing the medical school entrance requirements to include 15
hours of economics
d. Making it easier for plaintiffs to prove medical malpractice claims
e. Paying medical schools to eliminate residency opportunities in some
specialties – ANSWER- b. More scholarships and grants to cover
medical school tuition
Which of the following statements about the distribution of physicians
among specialties is true in the United States?
a. The majority of physicians specialize in general/family practice.
b. There are twice as many generalists as there are specialists.
c. There are twice as many specialists as there are generalists.
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d. The specialty distribution in the United States is similar to that of the
rest of the world.
e. None of the above. – ANSWER- c. There are twice as many
specialists as there are generalists.
According to surveys by the Medical Group Management Association,
the average primary care physician earned approximately _ in
2010.
a. $125,000
b. $150,000
c. $185,000
d. $200,000
e. $225,000. – ANSWER- d. $200,000
Surgical specialists earn more than general/family practice physicians.
Which of the following statements is not true regarding this income
differential?
a. Surgeons earn more because their practice costs, including medical
malpractice insurance is higher.
b. Surgeons earn more to compensate them for the extra years spent as
residents.
c. Physicians’ incomes are determined to a large extent by supply and
demand conditions with respect to each specialty.
d. Surgeons will always earn more than general practitioners because
they are smarter than general practitioners.
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e. Surgeons earn more than general practitioners because cutting into
people is messy. – ANSWER- d. Surgeons will always earn more than
general practitioners because they are smarter than general practitioners.
The rate of return on an investment in medical education
a. is inversely related to the length of time spent in formal schooling.
b. is inversely related to income.
c. will increase with an increase in the availability of student loans.
d. is much higher than the rate of return on an undergraduate business
degree.
e. is inversely related to the number of years in the profession. –
ANSWER- e. is inversely related to the number of years in the
profession.
Physicians who own their own diagnostic testing facilities tend to order
more tests, charge higher fees for them, and have higher total bills to
patients. This practice of self-referral is an example of
a. moral hazard.
b. adverse selection.
c. res ipsa loquitur.
d. physician-induced demand.
e. cognitive dissonance. – ANSWER- d. physician-induced demand.
The observed variations in practice patterns in different regions of the
country are difficult to eliminate
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a. because of the many alternative treatment options available for most
ailments.
b. due to the localized nature of most medical practice.
c. because it is difficult to change the preferences of physicians and
patients.
d. the observed variations are so minor that they are of little concern to
policy makers.
e. a, b, and c are true. – ANSWER- e. a, b, and c are true.
To address the shortage of physicians on the horizon, it will be necessary
to
a. build more medical schools.
b. provide more grants and scholarships for medical education.
c. allow the admission of more foreign-educated physicians.
d. all of the above. – ANSWER- d. all of the above.
In 2010, the medical specialty that earned the highest rate of return on
investment was
a. general primary care.
b. Internal medicine.
c. Pediatrics.
d. orthopedic surgery.
e. none of the above. – ANSWER- d. orthopedic surgery.
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LSUS MHA 710 EXAM 4 HEALTHCARE
ECONOMICS NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 100 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
The standard cut-off for cost per quality-adjusted life year
(QALY) used by most governmental decision makers is set in
terms of multiple of national per capita income. The value of the
threshold is usually what percent of national per capita income?
- ANSWER- 100
Suppose your assignment is to use the standard time trade-off
approach to measure quality of life . You are given the following
information: An individual is faced with living the remaining 10
years of their life suffering from severe osteoporosis. The
individual reveals that they 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 a chronic health state relative to perfect
health? – ANSWER- 0.6
According to Grossman (1972), how is the demand for medical
care determined? – ANSWER- It is derived from the demand for
health.
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The concept of quality-adjusted life year (QALY): – ANSWERis used extensively to evaluate medical care resource allocation
within government-run programs on fixed budgets, especially in
Europe.
Which is of the following measures of effectiveness is an
intermediate measure? – ANSWER- Hip Fracture
When measuring the effectiveness of a treatment, surrogate
measures reflect clinical efficacy and include: – ANSWERbone-mass density (BMD)
Which of the following is least responsible for the reduction in
mortality rates in Europe and North America? – ANSWERMore effective medical interventions.
A physician’s ability to induce demand is greatly enhanced
when: – ANSWER- patients have difficulty gathering and
processing information.
Which of the following would likely lead to the greatest
improvement in the health status of the population in the United
States? – ANSWER- Improved lifestyles changes
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The direct costs in an economic evaluation include all of the
following except: – ANSWER- reduced productivity at work.
There are substantial difference in medial care use by
demographic characteristics such as age, sex, and marital status.
Which of the following statements is true? – ANSWER- Adult
women spend more money on medical care than men do.
Many economists consider medical care a superior good. Which
of the following statements is true regarding a superior good? –
ANSWER- As consumer income increases, consumers spend
more on superior goods.
Researchers estimate QALY in a number of different ways. One
popular approach is called the : – ANSWER- standard gamble.
Cost effectiveness considerations are more formally integrated
into health policymaking in: – ANSWER- Australia, Europe, and
Canada.
Steps in performing a cost effectiveness analysis include all of
these EXCEPT: – ANSWER- ** prioritizing the alternative
treatment options
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