MHA 710 – Healthcare Economics – Exam 1 |
Newest Questions and Answers | Updated
2026 | Complete Review
• A society faces many decisions, but a household does not. True or False. -✓✓
False
• Public policies aimed at increasing the size of the economic pie also lead to a
higher degree of equality. True or False. -✓✓ False
• You can stay home and study to do well on your exam or you can go to the
movies with your friends, but not both. This example illustrates:
A. Scarcity and tradeoffs
B. Scarcity but not tradeoffs
C. Tradeoffs but not scarcity
D. Neither tradeoffs nor scarcity -✓✓ A. Scarcity and tradeoffs
• Your opportunity cost of going to a Maroon 5 concert during your Spring Break
is:
A. Zero, because Maroon 5 is your favorite
B. The price of the concert ticket
C. The price of the concert ticket plus the cost of any beverages you buy at the
concert
D. The price of the concert ticket, plus the cost of any beverages you buy at the
concert, and the value of your time -✓✓ D. The price of the concert ticket, plus
the cost of any beverages you buy at the concert, and the value of your time
,• Certain employees are eligible for unemployment compensation if they lose
their jobs through no fault of their own. If Jim, a factory worker, will receive
compensation of half his regular pay for 52 weeks while he looks for a job, then:
A. The unemployment compensation most likely raises Jim's incentive to save
while he is working. Unemployment compensation most likely increases Jim's
efforts to find a new job.
B. The unemployment compensation most likely raises Jim's incentive to save
while he is working. Unemployment compensation most likely decreases Jim's
efforts to find a new job.
C. The unemployment compensation most likely lowers Jim's incentive to save
while he is working. Unemployment compensation most likely increases Jim's
efforts to find a new job.
D. The unemployment compensation most likely lowers Jim's incentive to save
while he is working. Unemployment compensation most likely decreases Jim's
efforts -✓✓ D. The unemployment compensation most likely lowers Jim's
incentive to save while he is working. Unemployment compensation most likely
decreases Jim's efforts to find a new job.
• Micah has spent $30 for a taxi ride to attend a Colts game. When he arrives at
the stadium, he discovers that he left his ticket at home. He doesn't have time to
return home to get it. He paid $60 for his ticket, but can buy another one for $80.
In deciding whether he should buy another ticket Micah should compare the
value he places on attending the game to:
A. $30
B. $80
C. $90
D. $170 -✓✓ B. $80
• Trade between countries tends to:
, A. Reduce specialization and make everyone better off
B. Reduce specialization and make everyone worse off
C. Raise specialization and make everyone better off
D. Raise specialization but make everyone worse off -✓✓ C. Raise specialization
and make everyone better off
• Which of the following is the primary determinant of the standard of living?
A. Labor unions
B. Productivity
C. The amount of labor
D. Competition from foreign countries -✓✓ B. Productivity
• As the manager at the local Save-a-lot, you are thinking of adding one more
cashier that would increase sales revenues by $400 per week. What is the most
you can pay this new cashier and why?
A. $200 per week, so the store makes a profit of $200.
B. $400 per week, because that is the marginal benefit of hiring the new cashier.
C. $500 per week, because you are fair and pay more than the minimum wage.
D. I don't have enough information to make this decision. -✓✓ B. $400 per week,
because that is the marginal benefit of hiring the new cashier.
• High inflation is:
A. Not associated with high money supply growth rates. An increase in inflation
temporarily reduces unemployment.
B. Not associated with high money supply growth rates. An increase in inflation
permanently reduces unemployment.
Newest Questions and Answers | Updated
2026 | Complete Review
• A society faces many decisions, but a household does not. True or False. -✓✓
False
• Public policies aimed at increasing the size of the economic pie also lead to a
higher degree of equality. True or False. -✓✓ False
• You can stay home and study to do well on your exam or you can go to the
movies with your friends, but not both. This example illustrates:
A. Scarcity and tradeoffs
B. Scarcity but not tradeoffs
C. Tradeoffs but not scarcity
D. Neither tradeoffs nor scarcity -✓✓ A. Scarcity and tradeoffs
• Your opportunity cost of going to a Maroon 5 concert during your Spring Break
is:
A. Zero, because Maroon 5 is your favorite
B. The price of the concert ticket
C. The price of the concert ticket plus the cost of any beverages you buy at the
concert
D. The price of the concert ticket, plus the cost of any beverages you buy at the
concert, and the value of your time -✓✓ D. The price of the concert ticket, plus
the cost of any beverages you buy at the concert, and the value of your time
,• Certain employees are eligible for unemployment compensation if they lose
their jobs through no fault of their own. If Jim, a factory worker, will receive
compensation of half his regular pay for 52 weeks while he looks for a job, then:
A. The unemployment compensation most likely raises Jim's incentive to save
while he is working. Unemployment compensation most likely increases Jim's
efforts to find a new job.
B. The unemployment compensation most likely raises Jim's incentive to save
while he is working. Unemployment compensation most likely decreases Jim's
efforts to find a new job.
C. The unemployment compensation most likely lowers Jim's incentive to save
while he is working. Unemployment compensation most likely increases Jim's
efforts to find a new job.
D. The unemployment compensation most likely lowers Jim's incentive to save
while he is working. Unemployment compensation most likely decreases Jim's
efforts -✓✓ D. The unemployment compensation most likely lowers Jim's
incentive to save while he is working. Unemployment compensation most likely
decreases Jim's efforts to find a new job.
• Micah has spent $30 for a taxi ride to attend a Colts game. When he arrives at
the stadium, he discovers that he left his ticket at home. He doesn't have time to
return home to get it. He paid $60 for his ticket, but can buy another one for $80.
In deciding whether he should buy another ticket Micah should compare the
value he places on attending the game to:
A. $30
B. $80
C. $90
D. $170 -✓✓ B. $80
• Trade between countries tends to:
, A. Reduce specialization and make everyone better off
B. Reduce specialization and make everyone worse off
C. Raise specialization and make everyone better off
D. Raise specialization but make everyone worse off -✓✓ C. Raise specialization
and make everyone better off
• Which of the following is the primary determinant of the standard of living?
A. Labor unions
B. Productivity
C. The amount of labor
D. Competition from foreign countries -✓✓ B. Productivity
• As the manager at the local Save-a-lot, you are thinking of adding one more
cashier that would increase sales revenues by $400 per week. What is the most
you can pay this new cashier and why?
A. $200 per week, so the store makes a profit of $200.
B. $400 per week, because that is the marginal benefit of hiring the new cashier.
C. $500 per week, because you are fair and pay more than the minimum wage.
D. I don't have enough information to make this decision. -✓✓ B. $400 per week,
because that is the marginal benefit of hiring the new cashier.
• High inflation is:
A. Not associated with high money supply growth rates. An increase in inflation
temporarily reduces unemployment.
B. Not associated with high money supply growth rates. An increase in inflation
permanently reduces unemployment.
