HSA 4430 Health Economics LATEST MIDTERMS REVIEW QUESTIONS & ANSWERS

HSA 4430 Health Economics LATEST MIDTERMS REVIEW QUESTIONS & ANSWERS

1. Which of the following best describes the concept of 'moral
hazard' in health economics?
 - A) The risk of investing in new healthcare technologies.
 - B) The tendency of insured individuals to consume more
healthcare services.
 - C) The increased cost of healthcare due to provider
monopolies.
 - D) The ethical dilemma faced by pharmaceutical companies.
 Answer: B
 Rationale: Moral hazard refers to the phenomenon where
individuals with insurance coverage may consume more
healthcare services than they would if they were less insured, due
to reduced financial responsibility.
2. In cost-effectiveness analysis (CEA), what is the primary
measure used to compare the economic value of different health
interventions?
 - A) Net Present Value (NPV)
 - B) Quality-Adjusted Life Year (QALY)
 - C) Health Utility Index (HUI)
 - D) Return on Investment (ROI)

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