MHA 707 CH 6 Exam Questions and Answers
Question 1
____ is like no other sector of the economy.
Correct Answer
healthcare
Question 2
Even after a millennium of observation and study, our knowledge about the human body, disease, and medicine is very
much ____.
Correct Answer
incomplete
Question 3
In arrows explanation, the special economic problems of medical care can be explained by adaptations to ____.
Correct Answer
uncertainty in the incidence of disease and in the efficacy of treatment
Page 1 of 39
,Question 4
The physician nearly always has more medical knowledge, patients generally know more about their own history, so there
is usually a significant ___.
Correct Answer
information asymmetry between patient and provider
Question 5
Economists refer to situations in which an individual's behavior changes when he or she is able to shift the risks of
decisions to others as ____.
Correct Answer
moral hazard
Question 6
If an accident costs a person $2,000 but insurance pays $1,500 the insured person has less incentive to avoid the accident
than if the insurance paid only $500. This is an example of:
Correct Answer
moral hazard
Page 2 of 39
,Question 7
because the United States lacks a ____, how the money is paid to the providers of health care has become very complicated
a situation that health care reform policies have not reduced.
Correct Answer
single national health care payment system
Question 8
what is asymmetry information?
Correct Answer
occurs when one party to an economic transaction possesses greater material knowledge than the other part
Question 9
The risks that are inherent in medicine and medical practice are really nonmarketable in that ___.
Correct Answer
you can't put a price on it and you can't get paid back creating a lot of issues
Question 10
___ is behaving differently when you know someone else is taking the risk (induced demand). ex. people don't stop
smoking even though they know it leads to cancer bc they know the health insurance will pay for it.
Correct Answer
moral hazard
Page 3 of 39
, Question 11
____ is the idea that sicker people likely want more insurance (the healthier, want less insurance).
Correct Answer
adverse selection
Question 12
___ is the idea that sharing risk proportionately among many is a basic insurance concept.
Correct Answer
pooling of risk
Question 13
In response to this, financing health care in the United States is a complex matter of ____.
Correct Answer
workarounds, redundancies, and contradictions
Question 14
Since 1964, the U.S. Department of Health and Human Services (DHHS) has published data annually on total health
expenditures for the United States, called the ____.
Correct Answer
National Health Expenditure Accounts (NHEA)
Page 4 of 39
Question 1
____ is like no other sector of the economy.
Correct Answer
healthcare
Question 2
Even after a millennium of observation and study, our knowledge about the human body, disease, and medicine is very
much ____.
Correct Answer
incomplete
Question 3
In arrows explanation, the special economic problems of medical care can be explained by adaptations to ____.
Correct Answer
uncertainty in the incidence of disease and in the efficacy of treatment
Page 1 of 39
,Question 4
The physician nearly always has more medical knowledge, patients generally know more about their own history, so there
is usually a significant ___.
Correct Answer
information asymmetry between patient and provider
Question 5
Economists refer to situations in which an individual's behavior changes when he or she is able to shift the risks of
decisions to others as ____.
Correct Answer
moral hazard
Question 6
If an accident costs a person $2,000 but insurance pays $1,500 the insured person has less incentive to avoid the accident
than if the insurance paid only $500. This is an example of:
Correct Answer
moral hazard
Page 2 of 39
,Question 7
because the United States lacks a ____, how the money is paid to the providers of health care has become very complicated
a situation that health care reform policies have not reduced.
Correct Answer
single national health care payment system
Question 8
what is asymmetry information?
Correct Answer
occurs when one party to an economic transaction possesses greater material knowledge than the other part
Question 9
The risks that are inherent in medicine and medical practice are really nonmarketable in that ___.
Correct Answer
you can't put a price on it and you can't get paid back creating a lot of issues
Question 10
___ is behaving differently when you know someone else is taking the risk (induced demand). ex. people don't stop
smoking even though they know it leads to cancer bc they know the health insurance will pay for it.
Correct Answer
moral hazard
Page 3 of 39
, Question 11
____ is the idea that sicker people likely want more insurance (the healthier, want less insurance).
Correct Answer
adverse selection
Question 12
___ is the idea that sharing risk proportionately among many is a basic insurance concept.
Correct Answer
pooling of risk
Question 13
In response to this, financing health care in the United States is a complex matter of ____.
Correct Answer
workarounds, redundancies, and contradictions
Question 14
Since 1964, the U.S. Department of Health and Human Services (DHHS) has published data annually on total health
expenditures for the United States, called the ____.
Correct Answer
National Health Expenditure Accounts (NHEA)
Page 4 of 39
