BUSI 429 Healthcare Economics LATEST FINALS REVIEW QUESTIONS & ANSWERS

BUSI 429 Healthcare Economics LATEST FINALS REVIEW QUESTIONS & ANSWERS
1. Which of the following is a primary goal of healthcare
economics?
 - a) Maximization of clinical trials
 - b) Allocation of limited resources effectively
 - c) Expansion of hospital networks
 - d) Promotion of alternative medicine practices
 ANS: b) Allocation of limited resources effectively
 Rationale: Healthcare economics aims to allocate scarce
resources efficiently to improve population health outcomes.
2. Which payment model is known to incentivize providers for
better quality care rather than the volume of services?
 - a) Fee-for-service
 - b) Capitation
 - c) Pay-for-performance
 - d) Out-of-pocket payment
 ANS: c) Pay-for-performance
 Rationale: Pay-for-performance programs reward healthcare
providers for meeting specific quality and efficiency benchmarks.