HCM320 Healthcare Economics Midterms (Qns & Ans) 2026

HCM320 Healthcare Economics Midterms (Qns & Ans) 2026

1. Which of the following best describes the concept of valuebased health care?
 - A) Minimizing costs at all levels of care
 - B) Maximizing patient volume
 - C) Improving patient outcomes relative to the cost of
delivering care
 - D) Implementing high-tech equipment in all health facilities
 ANS: C
 Rationale: Value-based health care focuses on optimizing
outcomes for patients relative to the costs incurred, aiming for
high-quality care.
2. What is the primary economic justification for imposing sin
taxes on unhealthy commodities?
 - A) To increase government revenue
 - B) To reduce the consumption of these goods
 - C) To subsidize healthcare costs directly
 - D) To promote international trade
 ANS: B
 Rationale: Sin taxes are used as a deterrent to decrease
consumption of unhealthy goods, improving public health