HCS 552 Health Care Economics Final Exam Review Q & A 2026 (Complete And Verified Study material) (25pages) LEARNEXAMS

1. What is the principle of 'opportunity cost' in healthcare, and how can it affect decision-making for patient care? - A) The cost of the next-best alternative use of money, time, or resources when one choice is made over another. - B) The direct costs incurred in the delivery of healthcare services. - C) The costs associated with healthcare education and training. - D) The costs saved when choosing the most efficient healthcare intervention. Answer: A Rationale: Opportunity cost is a key concept in economics that refers to the value of the best alternative that is given up when a particular decision is made. In healthcare, understanding opportunity cost can help in making informed decisions about resource allocation. 2. How does the elasticity of demand for healthcare services influence patient access? - A) Higher elasticity means patients are more responsive to price changes, affecting their access to services. - B) Elasticity does not affect access as healthcare is a necessity. - C) Lower elasticity indicates that healthcare services are luxury goods. - D) Elasticity is only relevant in the context of healthcare insurance. Answer: A Rationale: The elasticity of demand measures how sensitive the quantity demanded is to a change in price. In healthcare, a higher elasticity could mean that patients will seek less care if prices rise, potentially affecting access to necessary services. 3. What role do 'externalities' play in healthcare economics? - A) They are the private benefits gained from healthcare services. - B) They represent the costs of healthcare education borne by the government. - C) They are the indirect costs or benefits that affect third parties not directly involved in the economic transaction. - D) Externalities refer to the international trade of healthcare services. Answer: C Rationale: Externalities are costs or benefits that affect a party who did not choose to incur that cost or benefit. In healthcare, externalities can