LSUS MHA 710 ECONOMICS 1 FINAL
TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
◍ Public Option.
Answer: Public health insurance plan comparable to Medicaid, designed to
compete with private insurance.
◍ Uncertainty.
Answer: Multiple outcomes possible but likelihood of any one outcome is
unknown.
◍ Opportunity cost measures.
Answer: -foregone opportunities-value based on the alternative not chosen
◍ Premium.
Answer: Periodic payment required to purchase an insurance policy.
◍ Group Insurance.
Answer: Plan where entire group receives insurance under single policy.
Insurance is issued to plan holder, usually by an employer or association.
◍ Medicare.
Answer: Health insurance for elderly, provided under an amendment to the
Social Security Act.
◍ Medicaid.
Answer: Health insurance for the poor, financed jointly by federal & state
governments.
◍ Flexner Report.
Answer: Report published in 1910, part of a critical review of medical
education in the U.S. The response of the medical establishment led to
, significant changes in the accreditation procedures of medical schools & an
improvement in quality of medical care.
◍ Since 1950, health care spending has grown from an average of 4.5
percentage of GDP to an estimated forecast of_______percent of GDP in
2020..
Answer: 18 percent
◍ The cost to society resulting from taxation to finance government spending
is called.
Answer: deadweight loss
◍ Which of the following does NOT contribute to wasteful spending in
medical care.
Answer: price transparency
◍ Which of the following measurements of health care spending adjusts for
the population size.
Answer: per capita
◍ Suppose you are a consultant advising the
U. S. government on reducing national health care spending. Assuming that
providers will accommodate patient desires, what advice could you offer
concerning the implementation of a price ceiling?.
Answer: Total spending may rise if providers intensify services and create
new technology for the uncontrolled sector
◍ A health insurance arrangement where individuals have access to health care
in exchange for a set premium is called.
Answer: third party payment system
◍ Collective Bargaining.
Answer: Negotiation process where representatives of employers &
employees agree upon terms of a labor contract, including wages & benefits.
◍ Certificate of Need (CON).
Answer: Regulations that attempt to avoid the costly duplication of services
, in the hospital industry. Providers are required to secure a __________
before undertaking a major expansion of facilities or services.
◍ Employee Retirement Income Security Act (ERISA).
Answer: Federal legislation passed in 1974 that sets minimum standards on
employee benefit plans, such as pensions, health insurance, & disability.
Statute protects interests in employees regarding eligibility for benefits. Law
also protects employers from certain state regulations. Example: States are
not allowed to regulate self-insured plans & cannot mandate that employers
provide health insurance to their employees.
◍ Entitlement Programs.
Answer: Gov. assistance programs where eligibility is determined by
specific criteria, such as age, health status, and level of income. These
programs include Social Security, Medicare, Medicaid, Temporary
Assistance for Needy Families (TANF), and many others.
◍ Prospective Payment.
Answer: Payment determined prior to provision of services. A feature of
many managed care organizations that base payment on capitation.
◍ Capitation.
Answer: Payment method providing a fixed, per capita payment to providers
for a specified medical benefits package. Providers are required to treat a
well-defined population for a fixed sum of money, paid in advance, without
regard to the number or nature of services provided to each person.
◍ Diagnosis-related Group.
Answer: Patient classification scheme based on certain demographic,
diagnostic, & therapeutic characteristics developed by Medicare and used to
compensate hospitals.
◍ Relative-value Scale.
Answer: Index assigning weights to various medical services used to
determine relative fees assigned to them.
◍ Since ACA was passed in 2010, there have been many efforts to have the
TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
◍ Public Option.
Answer: Public health insurance plan comparable to Medicaid, designed to
compete with private insurance.
◍ Uncertainty.
Answer: Multiple outcomes possible but likelihood of any one outcome is
unknown.
◍ Opportunity cost measures.
Answer: -foregone opportunities-value based on the alternative not chosen
◍ Premium.
Answer: Periodic payment required to purchase an insurance policy.
◍ Group Insurance.
Answer: Plan where entire group receives insurance under single policy.
Insurance is issued to plan holder, usually by an employer or association.
◍ Medicare.
Answer: Health insurance for elderly, provided under an amendment to the
Social Security Act.
◍ Medicaid.
Answer: Health insurance for the poor, financed jointly by federal & state
governments.
◍ Flexner Report.
Answer: Report published in 1910, part of a critical review of medical
education in the U.S. The response of the medical establishment led to
, significant changes in the accreditation procedures of medical schools & an
improvement in quality of medical care.
◍ Since 1950, health care spending has grown from an average of 4.5
percentage of GDP to an estimated forecast of_______percent of GDP in
2020..
Answer: 18 percent
◍ The cost to society resulting from taxation to finance government spending
is called.
Answer: deadweight loss
◍ Which of the following does NOT contribute to wasteful spending in
medical care.
Answer: price transparency
◍ Which of the following measurements of health care spending adjusts for
the population size.
Answer: per capita
◍ Suppose you are a consultant advising the
U. S. government on reducing national health care spending. Assuming that
providers will accommodate patient desires, what advice could you offer
concerning the implementation of a price ceiling?.
Answer: Total spending may rise if providers intensify services and create
new technology for the uncontrolled sector
◍ A health insurance arrangement where individuals have access to health care
in exchange for a set premium is called.
Answer: third party payment system
◍ Collective Bargaining.
Answer: Negotiation process where representatives of employers &
employees agree upon terms of a labor contract, including wages & benefits.
◍ Certificate of Need (CON).
Answer: Regulations that attempt to avoid the costly duplication of services
, in the hospital industry. Providers are required to secure a __________
before undertaking a major expansion of facilities or services.
◍ Employee Retirement Income Security Act (ERISA).
Answer: Federal legislation passed in 1974 that sets minimum standards on
employee benefit plans, such as pensions, health insurance, & disability.
Statute protects interests in employees regarding eligibility for benefits. Law
also protects employers from certain state regulations. Example: States are
not allowed to regulate self-insured plans & cannot mandate that employers
provide health insurance to their employees.
◍ Entitlement Programs.
Answer: Gov. assistance programs where eligibility is determined by
specific criteria, such as age, health status, and level of income. These
programs include Social Security, Medicare, Medicaid, Temporary
Assistance for Needy Families (TANF), and many others.
◍ Prospective Payment.
Answer: Payment determined prior to provision of services. A feature of
many managed care organizations that base payment on capitation.
◍ Capitation.
Answer: Payment method providing a fixed, per capita payment to providers
for a specified medical benefits package. Providers are required to treat a
well-defined population for a fixed sum of money, paid in advance, without
regard to the number or nature of services provided to each person.
◍ Diagnosis-related Group.
Answer: Patient classification scheme based on certain demographic,
diagnostic, & therapeutic characteristics developed by Medicare and used to
compensate hospitals.
◍ Relative-value Scale.
Answer: Index assigning weights to various medical services used to
determine relative fees assigned to them.
◍ Since ACA was passed in 2010, there have been many efforts to have the
