LSUS MHA 710 Economics Exam 1 Practice Questions with
well Verified answers 2026 Updates
Which of the following represents the largest category of health care spending in the United States? -
ANSWERS💫✔️-Hospital Care
The direct effect of a shortage of hospital beds in a hospital services market is: - ANSWERS💫✔️-Upward
pressure on the price of a hospital stay.
All of the following will cause a shift in the medical care supply curve, except: - ANSWERS💫✔️-A change
in the percentage of the population with health insurance.
Assuming providers will accommodate patient desires, what effect would a binding price ceiling have
on the health care market? - ANSWERS💫✔️-Price will decrease to adhere to the price ceiling & quantity
will increase.
Suppose the U.S. Food & Drug Administration restricts the amount of prescription opiates produced &
sold in the U.S. market. What is the likely effect on the market for drugs used to control chronic pain
the United States? - ANSWERS💫✔️-The price of prescription opiates will increase & the quantity
consumed will decrease.
The following graph depicts the market for CT scanners in the United States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per machine. If the
government places a $100,000 excise tax on each new scanner sold, the new equilibrium price will be:
- ANSWERS💫✔️-less than $1.30 million.
Suppose robotic technology improves the results of abdominal surgery—less time to perform the
surgery, faster recovery times, and fewer mistakes. What is the impact on the market for abdominal
surgery using this new technology? - ANSWERS💫✔️-Demand for robot-assisted surgery will increase, &
prices will rise.
If a hospital is experiencing economies of scale: - ANSWERS💫✔️-Its average cost curve is negatively
sloped as output increases.
, Which of the following does NOT contribute to wasteful spending in medical care? - ANSWERS💫✔️-Price
transparency.
Which of the following statements is based on positive analysis? - ANSWERS💫✔️-High health care prices
are one of the primary reasons that the United States spends more on medical care than other
countries.
Which of the following is NOT considered to be a factor in the recent slowing of health care spending?
- ANSWERS💫✔️-Growing U.S. gross domestic product (GDP).
If two women receive the same hip replacement procedure at a hospital, but are charged differently,
it is an example of: - ANSWERS💫✔️-Price discrimination.
Which of the following is NOT a personal health expenditure? - ANSWERS💫✔️-Program administration.
Inoculation programs against certain disease such as small pox, polio, & whooping cough create: -
ANSWERS💫✔️-Positive externalities in consumption.
The cost to society resulting from taxation to finance government spending is called: - ANSWERS💫✔️-
deadweight loss.
In the 1960s, individuals paid for the majority of their medical care out of pocket. Increased insurance
coverage, both private & public, displaced out-of-pocket spending as the primary source of payment.
By 2020, what was the forecasted percentage amount of health care spending paid by individuals? -
ANSWERS💫✔️-10.4 percent
Supply curves are positively sloped because of: - ANSWERS💫✔️-The increasing opportunity cost of
resources.
All of the following will change the demand for office visits to a physician, except: - ANSWERS💫✔️-A
change in the price of an office visit.
well Verified answers 2026 Updates
Which of the following represents the largest category of health care spending in the United States? -
ANSWERS💫✔️-Hospital Care
The direct effect of a shortage of hospital beds in a hospital services market is: - ANSWERS💫✔️-Upward
pressure on the price of a hospital stay.
All of the following will cause a shift in the medical care supply curve, except: - ANSWERS💫✔️-A change
in the percentage of the population with health insurance.
Assuming providers will accommodate patient desires, what effect would a binding price ceiling have
on the health care market? - ANSWERS💫✔️-Price will decrease to adhere to the price ceiling & quantity
will increase.
Suppose the U.S. Food & Drug Administration restricts the amount of prescription opiates produced &
sold in the U.S. market. What is the likely effect on the market for drugs used to control chronic pain
the United States? - ANSWERS💫✔️-The price of prescription opiates will increase & the quantity
consumed will decrease.
The following graph depicts the market for CT scanners in the United States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per machine. If the
government places a $100,000 excise tax on each new scanner sold, the new equilibrium price will be:
- ANSWERS💫✔️-less than $1.30 million.
Suppose robotic technology improves the results of abdominal surgery—less time to perform the
surgery, faster recovery times, and fewer mistakes. What is the impact on the market for abdominal
surgery using this new technology? - ANSWERS💫✔️-Demand for robot-assisted surgery will increase, &
prices will rise.
If a hospital is experiencing economies of scale: - ANSWERS💫✔️-Its average cost curve is negatively
sloped as output increases.
, Which of the following does NOT contribute to wasteful spending in medical care? - ANSWERS💫✔️-Price
transparency.
Which of the following statements is based on positive analysis? - ANSWERS💫✔️-High health care prices
are one of the primary reasons that the United States spends more on medical care than other
countries.
Which of the following is NOT considered to be a factor in the recent slowing of health care spending?
- ANSWERS💫✔️-Growing U.S. gross domestic product (GDP).
If two women receive the same hip replacement procedure at a hospital, but are charged differently,
it is an example of: - ANSWERS💫✔️-Price discrimination.
Which of the following is NOT a personal health expenditure? - ANSWERS💫✔️-Program administration.
Inoculation programs against certain disease such as small pox, polio, & whooping cough create: -
ANSWERS💫✔️-Positive externalities in consumption.
The cost to society resulting from taxation to finance government spending is called: - ANSWERS💫✔️-
deadweight loss.
In the 1960s, individuals paid for the majority of their medical care out of pocket. Increased insurance
coverage, both private & public, displaced out-of-pocket spending as the primary source of payment.
By 2020, what was the forecasted percentage amount of health care spending paid by individuals? -
ANSWERS💫✔️-10.4 percent
Supply curves are positively sloped because of: - ANSWERS💫✔️-The increasing opportunity cost of
resources.
All of the following will change the demand for office visits to a physician, except: - ANSWERS💫✔️-A
change in the price of an office visit.
