APA Final Exam Questions with all Correct & 100%
Verified Answers |Actual Complete Version 2026 |
Already Graded A+
Health vs. Health care ✔Correct Answer-Well being - physical and mental not just being
disease free; the other is the system that helps ensure this
Scarcity ✔Correct Answer-Dividing resources by using prices; supply and demand; infinite
number of needs and limited resources; in HP goods are more regulated than market driven
The leading insurance companies in the US in the 1920s were against compulsory health
insurance because of the inclusion of a funeral benefit ✔Correct Answer-True
The American Federation of Labor, lead by Samuel Gompers, championed Compulsory health
insurance coverage for all workers ✔Correct Answer-False
The American Medical Association responded to the Great Depression by restricting the supply
of doctors rather than stimulating demand for physicians' services. ✔Correct Answer-True
Increased state and federal funding for medical services of the poor started with the passage of
Medicaid in 1965. ✔Correct Answer-False
Post WW II, veterans were able to win support not only for treatment of their service-related
injuries but for all of their medical care needs, largely because of AMA support. ✔Correct
Answer-False
Blue cross started off as an insurance program that covered hospital costs only ✔Correct
Answer-true
The AMA is legally allowed to collectively bargain with managed care organizations on behalf of
its members over doctor fees. ✔Correct Answer-False
High deductible plans promote adverse selection. ✔Correct Answer-true
Medicare's prospective payment system has increased hospitalization rates. ✔Correct
Answer-False
In America, physicians have always enjoyed an esteemed position in society. ✔Correct
Answer-False
The goal of insurance is to give an individual financial risk protection ✔Correct Answer-True
, market equilibrium occurs when supply is greater than the demand ✔Correct Answer-false
all individuals consider societal welfare when maximizing their own utility ✔Correct Answer-
false
Moral hazard occurs when individuals do not consider opportunity costs ✔Correct Answer-
false
cost sharing in health insurance is a form of supply side tool to control moral hazard ✔Correct
Answer-false
Asymmetry of information can lead to market inefficiencies ✔Correct Answer-True
In the principal-agent relationship, the principal can easily monitor the agent's behavior
✔Correct Answer-False
Adverse selection occurs when insurance plans select low-risk and low-cost enrollees
✔Correct Answer-True
The Opioid Epidemic has negative externalities on society ✔Correct Answer-True
Collective-action problems get better as the group gets larger ✔Correct Answer-False
Pay-for-performance policies are challenging to implement due to the following reasons
✔Correct Answer-a. Evaluating case mix and adjusting for risk are crude methods
b. Measuring outputs of medical interventions is difficult
c. Providers are skeptical about the accuracy of these measures
The following is true about the patient-provider interaction ✔Correct Answer-a. The provider
acts as an agent on behalf of the patient.
b. Patients are not concerned that providers make treatment decisions based on profitability.
Insurers are very supportive of a single payer system ✔Correct Answer-false
1. States do not have the flexibility and are discouraged from experimenting with health
coverage programs like Medicaid ✔Correct Answer-false
1. The certificate of need (CON) increases the arms race among providers ✔Correct Answer-
False
Adverse selection ✔Correct Answer-can lead to a death spiral in the insurance market
usually externalities in the market increase its efficiency ✔Correct Answer-false
Verified Answers |Actual Complete Version 2026 |
Already Graded A+
Health vs. Health care ✔Correct Answer-Well being - physical and mental not just being
disease free; the other is the system that helps ensure this
Scarcity ✔Correct Answer-Dividing resources by using prices; supply and demand; infinite
number of needs and limited resources; in HP goods are more regulated than market driven
The leading insurance companies in the US in the 1920s were against compulsory health
insurance because of the inclusion of a funeral benefit ✔Correct Answer-True
The American Federation of Labor, lead by Samuel Gompers, championed Compulsory health
insurance coverage for all workers ✔Correct Answer-False
The American Medical Association responded to the Great Depression by restricting the supply
of doctors rather than stimulating demand for physicians' services. ✔Correct Answer-True
Increased state and federal funding for medical services of the poor started with the passage of
Medicaid in 1965. ✔Correct Answer-False
Post WW II, veterans were able to win support not only for treatment of their service-related
injuries but for all of their medical care needs, largely because of AMA support. ✔Correct
Answer-False
Blue cross started off as an insurance program that covered hospital costs only ✔Correct
Answer-true
The AMA is legally allowed to collectively bargain with managed care organizations on behalf of
its members over doctor fees. ✔Correct Answer-False
High deductible plans promote adverse selection. ✔Correct Answer-true
Medicare's prospective payment system has increased hospitalization rates. ✔Correct
Answer-False
In America, physicians have always enjoyed an esteemed position in society. ✔Correct
Answer-False
The goal of insurance is to give an individual financial risk protection ✔Correct Answer-True
, market equilibrium occurs when supply is greater than the demand ✔Correct Answer-false
all individuals consider societal welfare when maximizing their own utility ✔Correct Answer-
false
Moral hazard occurs when individuals do not consider opportunity costs ✔Correct Answer-
false
cost sharing in health insurance is a form of supply side tool to control moral hazard ✔Correct
Answer-false
Asymmetry of information can lead to market inefficiencies ✔Correct Answer-True
In the principal-agent relationship, the principal can easily monitor the agent's behavior
✔Correct Answer-False
Adverse selection occurs when insurance plans select low-risk and low-cost enrollees
✔Correct Answer-True
The Opioid Epidemic has negative externalities on society ✔Correct Answer-True
Collective-action problems get better as the group gets larger ✔Correct Answer-False
Pay-for-performance policies are challenging to implement due to the following reasons
✔Correct Answer-a. Evaluating case mix and adjusting for risk are crude methods
b. Measuring outputs of medical interventions is difficult
c. Providers are skeptical about the accuracy of these measures
The following is true about the patient-provider interaction ✔Correct Answer-a. The provider
acts as an agent on behalf of the patient.
b. Patients are not concerned that providers make treatment decisions based on profitability.
Insurers are very supportive of a single payer system ✔Correct Answer-false
1. States do not have the flexibility and are discouraged from experimenting with health
coverage programs like Medicaid ✔Correct Answer-false
1. The certificate of need (CON) increases the arms race among providers ✔Correct Answer-
False
Adverse selection ✔Correct Answer-can lead to a death spiral in the insurance market
usually externalities in the market increase its efficiency ✔Correct Answer-false
