Exam 2: MHA 710 MHA710 Latest Healthcare Economics

Exam 2: MHA 710 / MHA710 (Latest

2025 / 2026) Healthcare Economics | Questions and Verified Answers | 100% Correct | Grade A - LSU

Question:

One result of asymmetric information in health insurance markets is

• an optimal number of insurance policies sold.
• adverse selection.
• externalities in consumption.
• a low marginal benefit of additional information for the buyer of

insurance.

• the principal-agent problem.

Answer:

• adverse selection.

Question:

Moral hazard and adverse selection are both examples of

• the principal-agent problem.
• externalities in consumption.
• efficiency in markets.
• perfect information.
• asymmetric information. 1 / 4

Answer:

• asymmetric information.

Question:

Insurers try to minimize moral hazard by

• only selling policies to individuals with high ethical standards.
• requiring advance payments of premiums.
• charging higher premiums to individuals than to groups.
• charging deductibles and coinsurance.
• refusing to sell insurance to individuals with chronic illnesses.

Answer:

• charging deductibles and coinsurance.

Question:

Insurance works best in situations where

• there is a high probability of a small loss.
• there is a low probability of a small loss.
• there is a high probability of a large loss.
• there is a low probability of a large loss.
• the level of probability and the size of the loss are irrelevant.

Answer:

• there is a low probability of a large loss. 2 / 4

Question:

Analysts cite figures on the number of uninsured in the United States as low as 10 million and as high as 60 million. Which of the following is a true statement?

• The uninsured are all free riders.
• Most of the uninsured have health problems and are not able to get private

health insurance.

• Most of the uninsured have some labor-force connection—either working

or as a dependent of someone who is working.

• The lack of health insurance means that the individual has virtually no

access to medical care.

• Once you lose your health insurance, it is extremely difficult to get

reinsured.

Answer:

• Most of the uninsured have some labor-force connection—either working

or as a dependent of someone who is working.

Question:

The highest incidence of those without health insurance occurs in which age category?

• Under 18 years of age
• 18-34 years of age
• 35-44 years of age
• 45-64 years of age
• Over 65 years of age

Answer:

• 45-64 years of age 3 / 4

Question:

Many individuals without health insurance receive "free" care. What are the sources of most of the care they receive?

• Public hospitals and clinics
• Private, not-for-profit hospitals
• Private, for-profit hospitals
• Multi-specialty physicians' practices
• Solo practitioners and their associates

Answer:

• Public hospitals and clinics

Question:

The percentage of a population that has a specific disease at a point in time.

Answer:

Disease prevalence

Question:

Premature death that could have been avoided with timely access to high- quality health care.

Answer:

Amenable mortality

• / 4