Health Economy course Questions

Health Economy course Questions Answer the below questions(MCQ) with explanations: 1.Refers to exploitation of asymmetric in" rel="nofollow">information to in" rel="nofollow">increase demand for physician services. a.    Physician in" rel="nofollow">inflation rate b.    Supplier-in" rel="nofollow">induced demand c.    Fee-for-service d.    Market equilibrium e.    None of the above 2.Which of the followin" rel="nofollow">ing reasons might explain" rel="nofollow">in why expenditures on physician services have in" rel="nofollow">increased? a. Increased utilization b. Increased practice costs c. Increased physician in" rel="nofollow">incomes d. All of the above e. None of the above 3.Which of the followin" rel="nofollow">ing payment mechanisms provides the greatest in" rel="nofollow">incentive to over utilize medical care? a. Fee-for-service b. Fixed Salary c. Capitation d. Pay-for-performance e. Price controls 4.Over the past thirty years, the absolute number of active primary care physicians in" rel="nofollow">in the united states has _______ while the proportion of active primary care physicians has _______. a. decreased; decreased b. decreased; in" rel="nofollow">increased c. in" rel="nofollow">increased; remain" rel="nofollow">ined stable d. in" rel="nofollow">increased; in" rel="nofollow">increased e. in" rel="nofollow">increased; decreased 5.Which of the followin" rel="nofollow">ing exemplifies the prin" rel="nofollow">incipal-agent theory within" rel="nofollow">in medical care? a. The doctor-patient relationship b. The doctor-payer relationship c.The patient-payer relationship d. Both a and c e. All of the above 6.The _______ suggests that per capita variations in" rel="nofollow">in the use of medical care are due to variations in" rel="nofollow">in physician preference for particular medical procedures. a. physician practice hypothesis b. supplier-in" rel="nofollow">induced demand hypothesis c. enthusiasm hypothesis d. prin" rel="nofollow">incipal-agent hypothesis e. small area variation hypothesis 7.The ———— suggests that per capita variations in" rel="nofollow">in the use of medical care are to variations in" rel="nofollow">in clin" rel="nofollow">inical opin" rel="nofollow">inions regardin" rel="nofollow">ing the appropriate amount and type of medical care. a.    physician practice hypothesis. b.    supplier-in" rel="nofollow">induced demand hypothesis. c.    enthusiasm hypothesis. d.    prin" rel="nofollow">inciple-agent hypothesis. e.    small area variation hypothesis. 8.————— relates to productivity or quality improvement observed  over time irrespective of the quantity produced. a.    Sunk costs. b.    System affiliation. c.    Scale economies. d.    Scope economies. e.    Learnin" rel="nofollow">ing-by-watchin" rel="nofollow">ing. 9.Assume that there are 5 equally sized hospitals in" rel="nofollow">in a market area.If two of these hospitals decide to merge,what will be the in" rel="nofollow">increase in" rel="nofollow">in the Herfin" rel="nofollow">indahl-Hirschman in" rel="nofollow">index? a.    2000. b.    800. c.    1600. d.    2800. e.    400. 10.Which of the followin" rel="nofollow">ing hospital product characteristics has been shown to strongly affect consumer choice? a.    Staff. b.    Physical facilities . c.    Experience. d.    All of the above. 11.Which of the followin" rel="nofollow">ing accounts for largest portion of hospital expenditures in" rel="nofollow">in the United States? a.    Private in" rel="nofollow">insurance. b.    Out-of-pocket. c.    Government. d.    Charity care. e.    Other. 12.Accordin" rel="nofollow">ing to the ——————,new technology is most likely to be adopted by research and teachin" rel="nofollow">ing hospitals first. a.    quantity maximization model. b.    quality maximization model. c.    managerial expense prefernce model. d.    qualityquantitymaximization model. e.    utility maximization model. 13.Demand for hospital services in" rel="nofollow">in the U.S. is considered to be —————-. a.    in" rel="nofollow">inelastic. b.    elastic. c.    unit elastic. d.    in" rel="nofollow">income elastic. e.    None of the above. 14.Which of the followin" rel="nofollow">ing reasons might serve as a barrier to entry within" rel="nofollow">in the hospital services in" rel="nofollow">industry? a.    Scale economies. b.    Standardized product. c.    Certificate of need. d.    Both a and c. e.    All of the above. 15.————————- occurs when change to prices charged to payers changes as a compensatin" rel="nofollow">ing response to changes in" rel="nofollow">in admin" rel="nofollow">inistered prices of a different payer. a.Scale economies . b.Sunk cost. c. Cost-shiftin" rel="nofollow">ing. d.Moral hazard. e.Hospital services price in" rel="nofollow">inflation. 16. Which of the followin" rel="nofollow">ing best explain" rel="nofollow">ins why there is little evidence of cost differences between hospital ownership-types in" rel="nofollow">in the United States? a.    Certificates of need. b.    Consolidations. c.    Increasin" rel="nofollow">ing hospital occupancy rates. d.    Physicians seekin" rel="nofollow">ing to maximize their in" rel="nofollow">incomes. e.    All of the above. 17. Which of the followin" rel="nofollow">ing methods has been used by third-party payers in" rel="nofollow">in the U.S to control pharmaceutical cost? a.    Formularies. b.    Drug utilisation review. c.    Generic substitution. d.    Both b and c . e.    All of the above . 18.While pharmaceutical manufacturers compete in" rel="nofollow">in a ——————- concentrated in" rel="nofollow">industry than benefit management  companies ,mergers between the two help to costs. a.    less ; in" rel="nofollow">increase. b.    less ; decrease. c.    more ; in" rel="nofollow">increase. d.    more; decrease. e.    similarly ; decrease. 19.In the U.S ,patents award pharmaceutical firms the sole right to produce a product for ————years and ————the fin" rel="nofollow">inancial in" rel="nofollow">incentive for firms to develop new drugs. a.    25; in" rel="nofollow">increase. b.    18; decrease. c.    20; in" rel="nofollow">increase. d.    15; in" rel="nofollow">increase. e.    25; decrease. 20.Which of the followin" rel="nofollow">ing serves as a barrier to entry in" rel="nofollow">in the pharmaceutical in" rel="nofollow">industry? a.    Government patents. b.    Certificates of need. c.    Brand-loyalty advantage. d.    Both a and c. e.    All of the above. 21.The U.S Food and Drug Admin" rel="nofollow">inistration (FDA)tends to focus more on reducin" rel="nofollow">ing ————-errors sin" rel="nofollow">ince the victims are ————- identifiable than those from —————errors. a.    type 1; less; type 2. b.    type 2; more;type 1. c.    type 2;less;type 1. d.    type 1; more;type 2. e.    Non of the above. 22.Entrance of generic drugs in" rel="nofollow">into the market tends to ————- the price of the brand name drug sin" rel="nofollow">ince the remain" rel="nofollow">inin" rel="nofollow">ing consumers of the brand name drug are typically————— price-sensitive. a.    in" rel="nofollow">increase; more. b.    decrease; more. c.    in" rel="nofollow">increase; less. d.    not affect; equally. e.    decrease; less. 23.Which of the followin" rel="nofollow">ing would explain" rel="nofollow">in why large firms possess greater in" rel="nofollow">incentive to engage in" rel="nofollow">in research and development of new drugs than small firms do a.    Resource capability. b.    Risk absorption . c.    Research economies. d.    All of the above. e.    None of the above. 24.advertisin" rel="nofollow">ing is supported by evidence showin" rel="nofollow">ing that ————— detailed advertisin" rel="nofollow">ing of older products tends to be targeted at younger physicians. a.    Informative; more. b.    Persuasive; less. c.    Informative;less. d.    Persuasive;more. e.    both a and d . 25.Which of the followin" rel="nofollow">ing represents an opportunity cost? a.    Increase in" rel="nofollow">in medical technology. b.    Reduction in" rel="nofollow">in fees for Medicare patients. c.    Additional spendin" rel="nofollow">ing on public health in" rel="nofollow">initiatives. d.    Increase enrollments at medical schools. e.    Forgone geriatric care to provide additional maternity services. 26.Any poin" rel="nofollow">int---------------------------the production possibilities frontier is efficient and attain" rel="nofollow">inable. a. in" rel="nofollow">inside of b. along c. outside of d. both a and b are correct e. both a and c are correct 27.-----------------------------help explain" rel="nofollow">in the law of in" rel="nofollow">increasin" rel="nofollow">ing opportunity costs. a. Differin" rel="nofollow">ing consumer preferences b. the characteristics of a pure market system c. advancements in" rel="nofollow">in technology d. imperfect substitutability of resources e. decreases in" rel="nofollow">in the availability of natural resources 28. of the followin" rel="nofollow">ing is not a basic question that must be answered as a result of scarcity? a. who should decide the amount of money spent on medical goods and services? b. who should receive the medical goods and services that are produced? c. what mix of nonmedical and medical goods and services should be produced in" rel="nofollow">in the macroeconomy? d. what specific health care resources should be used to produce the chosen medical goods and services? e. what mix of medical goods and services should be produced in" rel="nofollow">in the health economy? 29. the concept of ----------------------- helps explain" rel="nofollow">in why some people choose not to visit their primary care physician every day. a. in" rel="nofollow">inseparability b. human capital c. dimin" rel="nofollow">inishin" rel="nofollow">ing margin" rel="nofollow">inal utility. d. process quality. e. absolute in" rel="nofollow">income hypothesis 30. which of the followin" rel="nofollow">ing is not a characteristic of medical care that distin" rel="nofollow">inguishes it from other goods? a. in" rel="nofollow">investment. b. in" rel="nofollow">inventory. c. in" rel="nofollow">intangibility. d. Inconsistency e. in" rel="nofollow">inseparability 31. which of the followin" rel="nofollow">ing is in" rel="nofollow">included in" rel="nofollow">in the health production function? a. age b. state of medical technology c. gender d. in" rel="nofollow">income e. All of the above 32. ------------------------------------are typically the primary source of fundin" rel="nofollow">ing for medical care in" rel="nofollow">insurance provided by a government agency. a. taxes b. premiums c. copayments d. out-of-pocket fees e. none of the above 33. which of the followin" rel="nofollow">ing countries provides universal health in" rel="nofollow">insurance coverage? a. United States b. Germany c. Switzerland d. United Kin" rel="nofollow">ingdom e. Canada 34. Germany’s health care system can be best described as -------------------------------. a. national health in" rel="nofollow">insurance b. socialized health in" rel="nofollow">insurance c. managed competition d. public contractin" rel="nofollow">ing e. pluralistic 35. switzerland’s health care system ca be best described as _____________________. a. national health in" rel="nofollow">insurance b. socialized health in" rel="nofollow">insurance c. managed competition d. public contractin" rel="nofollow">ing e. pluralistic 36. the two major types of public health in" rel="nofollow">insurance in" rel="nofollow">in the U.S are------------------------------. a. blue cross and blue shield b. blue shield and medicaid c. blue cross and medicare d. medicare and blue shield e. medicare and Medicaid 37. medical care providers in" rel="nofollow">in the U.S are reimbursed through the use of a. fixed payment systems b. variable payment systems c. out-of-pocket fees d. all of the above e. both a and c 38. in" rel="nofollow">insurance _______________________ the price for medical care, thereby------------the demand for it. a. in" rel="nofollow">increase, decrease b. decrease, decrease c. in" rel="nofollow">increase, in" rel="nofollow">increase d. decrease, in" rel="nofollow">increase e. none of the above 39. A---------------- represents afixed amount paid by the consumer that is in" rel="nofollow">independent of the market price or actual costs of medical care. a. deductible b. loadin" rel="nofollow">ing charge c. coin" rel="nofollow">insurance rate d. claim e. copayment 40. of the followin" rel="nofollow">ing might occur after acquirin" rel="nofollow">ing health in" rel="nofollow">insurance due to moral hazard? a. a consumer visits a doctor more frequently b. a consumer washes his / her hands more frequently. c. a consumer eats healthier d. all of the above e. none of the above 41. A positive cross-price elasticity estimate between in" rel="nofollow">in-patient and out-patient services at a hospital would implaythat two are---------------. a. normal goods b. in" rel="nofollow">inferior goods c. compliments d. substitutes e. unrelated 42. ifsarah has an in" rel="nofollow">income of 550,000 when healthy, and faces a probability of 0.15 of losin" rel="nofollow">ing $10,000 of this due to an illness, what is her expected in" rel="nofollow">income? a. $17,500 b. $40,000 c. $48,500 d. $44,000 e. $16,000 43. An in" rel="nofollow">individual who is ---------------------- would not choose to purchase health in" rel="nofollow">insurance. a. risk-averse b. self-employed c. unemployed d. risk-neutral e. risk-lovin" rel="nofollow">ing 44. Reduced coin" rel="nofollow">insurance rates are likely to ---------------------moral hazards costs and ---------------the risk exposure of the consumer a. in" rel="nofollow">increase, decrease b. decrease, decrease c. in" rel="nofollow">increase, in" rel="nofollow">increase d. decrease, in" rel="nofollow">increase e. none of the above 45. in" rel="nofollow">insurance premiums determin" rel="nofollow">ined by a ------------------are based on the risk characteristics of the entire membership. a. loadin" rel="nofollow">ing charge b. experience ratin" rel="nofollow">ing c. staff model d. group model e. community ratin" rel="nofollow">ing 46.-----------------------occur when the cost of producin" rel="nofollow">ing a medical service decrease as the quality produced in" rel="nofollow">increase. a. economics of scale b. economics of scope c. diseconomies of scale d. diseconomies of scope e.none of the above 47. Suppose a government decides to subsidize flu vaccin" rel="nofollow">inations in" rel="nofollow">in an attempt to correct a market failure. Without this government in" rel="nofollow">interventions, the flu vaccin" rel="nofollow">ination would most likely be ---------------------due to the presence of ------------. a. over- consumed, negative externalities b. under-consumed, positive externalities c. over-consumed, positive externalities d. under-consumed, negative externalities e. none of the above 48. ----------------is the prin" rel="nofollow">incipal catalyst for the provision of government in" rel="nofollow">intervention in" rel="nofollow">in the market for health in" rel="nofollow">insurance a. uncertain" rel="nofollow">inty b. population growth c. disease prevalence d. imperfect in" rel="nofollow">information e. health expenditure growth 49.--------------------------------- is the situation where in" rel="nofollow">insured in" rel="nofollow">individuals alter their behavior because they are no longer fin" rel="nofollow">inancially responsible for the full cost of their behavior. a. moral hazard b. asymmetric in" rel="nofollow">information c. rationality d. scale economies e. adverse selection 50. which of the followin" rel="nofollow">ing reasons might explain" rel="nofollow">in why health in" rel="nofollow">insurance purchased as a group might be less costly than coverage purchased in" rel="nofollow">individually? a. greater bargain" rel="nofollow">inin" rel="nofollow">ing power b. risk spreadin" rel="nofollow">ing over a larger number of people c. lower marketin" rel="nofollow">ing costs for the provider d. Both a and b e. All of the above