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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
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