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LSUS MHA 710 Economics Exam 1 Questions
and Answers (100% Correct Answers) Already
Graded A+
Which of the following represents the largest category of health care
spending in the United States? Ans: Hospital Care
The direct effect of a shortage of hospital beds in a hospital services
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market is: Ans: Upward pressure on the price of a hospital stay.
All of the following will cause a shift in the medical care supply curve,
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except: Ans: A change in the percentage of the population with health
insurance.
Assuming providers will accommodate patient desires, what effect
would a binding price ceiling have on the health care market? Ans:
Price will decrease to adhere to the price ceiling & quantity will increase.
Suppose the U.S. Food & Drug Administration restricts the amount of
prescription opiates produced & sold in the U.S. market. What is the likely
effect on the market for drugs used to control chronic pain the United
States? Ans: The price of prescription opiates will increase & the quantity
consumed will decrease.
The following graph depicts the market for CT scanners in the United
States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per
machine. If the government places a $100,000 excise tax on each new
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scanner sold, the new equilibrium price will be: Ans: less than $1.30
million.
Suppose robotic technology improves the results of abdominal surgery—
less time to perform the surgery, faster recovery times, and fewer
mistakes. What is the impact on the market for abdominal surgery using
this new technology? Ans: Demand for robot-assisted surgery will
increase, & prices will rise.
If a hospital is experiencing economies of scale: Ans: Its average cost
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curve is negatively sloped as output increases.
Which of the following does NOT contribute to wasteful spending in
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medical care? Ans: Price transparency.
Which of the following statements is based on positive analysis? Ans:
High health care prices are one of the primary reasons that the United
States spends more on medical care than other countries.
Which of the following is NOT considered to be a factor in the recent
slowing of health care spending? Ans: Growing U.S. gross domestic
product (GDP).
If two women receive the same hip replacement procedure at a
hospital, but are charged differently, it is an example of: Ans: Price
discrimination.
Which of the following is NOT a personal health expenditure? Ans:
Program administration.
1
LSUS MHA 710 Economics Exam 1 Questions
and Answers (100% Correct Answers) Already
Graded A+
Which of the following represents the largest category of health care
spending in the United States? Ans: Hospital Care
The direct effect of a shortage of hospital beds in a hospital services
© 2026 Assignment Expert
market is: Ans: Upward pressure on the price of a hospital stay.
All of the following will cause a shift in the medical care supply curve,
Guru01 - Stuvia
except: Ans: A change in the percentage of the population with health
insurance.
Assuming providers will accommodate patient desires, what effect
would a binding price ceiling have on the health care market? Ans:
Price will decrease to adhere to the price ceiling & quantity will increase.
Suppose the U.S. Food & Drug Administration restricts the amount of
prescription opiates produced & sold in the U.S. market. What is the likely
effect on the market for drugs used to control chronic pain the United
States? Ans: The price of prescription opiates will increase & the quantity
consumed will decrease.
The following graph depicts the market for CT scanners in the United
States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per
machine. If the government places a $100,000 excise tax on each new
, For Expert help and assignment handling,
2
scanner sold, the new equilibrium price will be: Ans: less than $1.30
million.
Suppose robotic technology improves the results of abdominal surgery—
less time to perform the surgery, faster recovery times, and fewer
mistakes. What is the impact on the market for abdominal surgery using
this new technology? Ans: Demand for robot-assisted surgery will
increase, & prices will rise.
If a hospital is experiencing economies of scale: Ans: Its average cost
© 2026 Assignment Expert
curve is negatively sloped as output increases.
Which of the following does NOT contribute to wasteful spending in
Guru01 - Stuvia
medical care? Ans: Price transparency.
Which of the following statements is based on positive analysis? Ans:
High health care prices are one of the primary reasons that the United
States spends more on medical care than other countries.
Which of the following is NOT considered to be a factor in the recent
slowing of health care spending? Ans: Growing U.S. gross domestic
product (GDP).
If two women receive the same hip replacement procedure at a
hospital, but are charged differently, it is an example of: Ans: Price
discrimination.
Which of the following is NOT a personal health expenditure? Ans:
Program administration.
