MHA 710 TEST 4 2026 EXAMINATION TEST
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Insurance works best in situations where: Answer: there is a low
probability of a large loss.
◉ Moral hazard and adverse selection are both examples of: Answer:
asymmetric information.
◉ The U.S. perinatal mortality rate (late fetal deaths plus deaths in
the neonatal period) was 5.9 in 2018, lower than those found in:
Answer: France, Switzerland, and the United Kingdom.
◉ A prepaid hospital plan created by Baylor Hospital for a group of
Dallas public school teachers in 1929 is considered by many to be
the forerunner of: Answer: Blue Cross.
◉ The economic argument for legalizing drugs: Answer: is based on
the assumption that for most non-users, the demand is relatively
price elastic.
, ◉ Eliminating health disparities across various population groups
requires that we: Answer: address the source of disparities in
behavioral, socioeconomic, and environmental factors.
◉ The goal of health insurance is to: Answer: collect sufficient
premiums to cover all possible losses.
◉ A ______ percentage of the French population is obese; they
consume _______ fat than Americans do. Answer: small; less
◉ The nature of health care delivery will be different in the future
due to: Answer: a rising percentage of elderly in the total population.
◉ Suppose a group of 100 people seeks out an insurance company
to underwrite health insurance for its members. The expected
medical spending for the group is $150,000. If an additional 10
people who have expected medical spending of $5,000 per person
on average join the group, the new premium will be approximately:
Answer: $2,139.
The premium calculation is [(150,000 + 50,000)/110/(1 - 0.15)].
◉ In 2001, life expectancy at birth in the United States was 77.2
years, increasing to 78.7 years in 2018. However, there remains a
racial gap between Blacks and Whites. White life expectancy in 2018
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Insurance works best in situations where: Answer: there is a low
probability of a large loss.
◉ Moral hazard and adverse selection are both examples of: Answer:
asymmetric information.
◉ The U.S. perinatal mortality rate (late fetal deaths plus deaths in
the neonatal period) was 5.9 in 2018, lower than those found in:
Answer: France, Switzerland, and the United Kingdom.
◉ A prepaid hospital plan created by Baylor Hospital for a group of
Dallas public school teachers in 1929 is considered by many to be
the forerunner of: Answer: Blue Cross.
◉ The economic argument for legalizing drugs: Answer: is based on
the assumption that for most non-users, the demand is relatively
price elastic.
, ◉ Eliminating health disparities across various population groups
requires that we: Answer: address the source of disparities in
behavioral, socioeconomic, and environmental factors.
◉ The goal of health insurance is to: Answer: collect sufficient
premiums to cover all possible losses.
◉ A ______ percentage of the French population is obese; they
consume _______ fat than Americans do. Answer: small; less
◉ The nature of health care delivery will be different in the future
due to: Answer: a rising percentage of elderly in the total population.
◉ Suppose a group of 100 people seeks out an insurance company
to underwrite health insurance for its members. The expected
medical spending for the group is $150,000. If an additional 10
people who have expected medical spending of $5,000 per person
on average join the group, the new premium will be approximately:
Answer: $2,139.
The premium calculation is [(150,000 + 50,000)/110/(1 - 0.15)].
◉ In 2001, life expectancy at birth in the United States was 77.2
years, increasing to 78.7 years in 2018. However, there remains a
racial gap between Blacks and Whites. White life expectancy in 2018
