LSUS MHA 710 EXAM 2 COMPLETE STUDY
GUIDE AND HEALTHCARE ECONOMICS
REVIEW 2026
◉ Suppose your assignment is to use the standard time trade-off
approach to measure quality of life. You are given the following
information: An individual is faced with living the remaining 10
years of their life suffering from severe osteoporosis. The individual
reveals that they would be willing to give up four of those years to
live the remaining six in perfect health. What is the utility of one
year in a chronic health state relative to perfect health?
Answer: 0.6
◉ The concept of quality-adjusted life year (QALY):
Answer: is used extensively to evaluate medical care resource
allocation within government-run programs on fixed budgets,
especially in Europe.
◉ The accompanying diagram depicts the relationship between
health status and medical care spending for a particular country.
Assume the current spending level is S on TP . All of the statements
below are true?
Answer: S1 levels of spending are often described as spending on
the flat of the curve.
, ◉ There are substantial differences in medical care use by
demographic characteristics such as age, sex, and marital status.
Which of the following statements is true?
Answer: Adult women spend more money on medical care than men
do.
◉ A physician's ability to induce demand is greatly enhanced when:
Answer: patients have difficulty gathering and processing
information.
◉ According to Grossman (1972), how is the demand for medical
care determined?
Answer: It is derived from the demand for health.
◉ The intangible costs associated with reduced quality of life
include:
Answer: pain and suffering.
◉ The primary tasks required to conduct a successful cost
effectiveness study are all of the following except:
Answer: identifying the overall cost of a health condition on society.
GUIDE AND HEALTHCARE ECONOMICS
REVIEW 2026
◉ Suppose your assignment is to use the standard time trade-off
approach to measure quality of life. You are given the following
information: An individual is faced with living the remaining 10
years of their life suffering from severe osteoporosis. The individual
reveals that they would be willing to give up four of those years to
live the remaining six in perfect health. What is the utility of one
year in a chronic health state relative to perfect health?
Answer: 0.6
◉ The concept of quality-adjusted life year (QALY):
Answer: is used extensively to evaluate medical care resource
allocation within government-run programs on fixed budgets,
especially in Europe.
◉ The accompanying diagram depicts the relationship between
health status and medical care spending for a particular country.
Assume the current spending level is S on TP . All of the statements
below are true?
Answer: S1 levels of spending are often described as spending on
the flat of the curve.
, ◉ There are substantial differences in medical care use by
demographic characteristics such as age, sex, and marital status.
Which of the following statements is true?
Answer: Adult women spend more money on medical care than men
do.
◉ A physician's ability to induce demand is greatly enhanced when:
Answer: patients have difficulty gathering and processing
information.
◉ According to Grossman (1972), how is the demand for medical
care determined?
Answer: It is derived from the demand for health.
◉ The intangible costs associated with reduced quality of life
include:
Answer: pain and suffering.
◉ The primary tasks required to conduct a successful cost
effectiveness study are all of the following except:
Answer: identifying the overall cost of a health condition on society.
