EC248 T/F/U EXAM QUESTIONS WITH
ANSWERS 100% SOLVED
Insurance coverage likely has little impact on people's use of needed
health care services.Insurance coverage likely has little impact on people's
use of needed health care services. - ANSWER False. Likely has a major
impact, if something is not covered and is expensive to pay with from out-
of-pocket then that individual likely won't be able to get access to that care.
Reducing inequalities in health within the population should focus primarily
on the distribution of health care. - ANSWER True. Should look at
government transfers to provide a baseline necessary level of health-care
to all individuals.
Because it increases GDP, increased health care spending is a sign of a
robust economy. - ANSWER True. Advancement in technology has a great
impact on health expenditure causing increase in health care spending.
Increase in health spending has a direct relation with increased GDP.
Increased GDP is a sign of increased consumer purchasing power.
Increase in purchasing power implies a strong and health economy, i.e
robust economy.
The variation in the design of health care systems is a sure sign of
inefficiency. - ANSWER True, There have been many variations in hospital
procedures, technologies, testing and costs, however, there has been a
good impact on the health care system. To take up variation in design
requires lots of expenditure, which ultimately affects the way of treating
patients in an inefficient manner.
The evolution of health care technologies causes the efficient design of a
health care system to change over time. - ANSWER True. Health care
, technologies continue to evolve changing the overall design of the health
care system in order to bring improvements in patent care and treatment.
Technology can lead to reduces costs with can increase the accessibility of
health care. Other education improvements via technology can provide
better information for patients and physicians.
All production points on the production possibilities frontier are allocatively
efficient. - ANSWER False. Points on the PPF show the productive
efficiency and not the allocative efficiency. The PPF only shows the
potential output.
Scarcity of resources results from inefficiency. - ANSWER False. Scarcity
arises due to a system of unlimited wants constrained by limited resources.
Impossible to satiate everyone's desires given the resources provided on
earth. This results in scarcity.
There is no opportunity cost for applications of resources that are
technologically efficient, cost-effective, and allocatively efficient. - ANSWER
False. Opportunity cost is the cost of the next best alternative. Just
because a process meets all the efficiency criteria does not mean there are
not alternatives.
An equitable distribution of a good often implies an unequal distribution of
the good among members of society. - ANSWER True. Equitable does not
mean equal. Although in certain circumstances the equitable outcome
might involve equality, often it does not. For example, it may be deemed
equitable for a person with a chronic disease to receive more health care
compared to an identical person without a chronic disease.
A cost-effective allocation of productive resources must also be
technologically efficient. - ANSWER True. Technical efficiency means that
that you are able to produce the maximum possible amount of output from
the inputs used, given the chosen production method. A cost-effective
policy is the least-cost method of production from among all technically
efficient methods.
Pareto-efficient allocations always maximize welfare in society. - ANSWER
False. Pareto efficiency does not consider equity, it is only considered with
achieving efficient market allocations. You could have a situation where the
market is operating efficiently and still have an unequitable distribution of
ANSWERS 100% SOLVED
Insurance coverage likely has little impact on people's use of needed
health care services.Insurance coverage likely has little impact on people's
use of needed health care services. - ANSWER False. Likely has a major
impact, if something is not covered and is expensive to pay with from out-
of-pocket then that individual likely won't be able to get access to that care.
Reducing inequalities in health within the population should focus primarily
on the distribution of health care. - ANSWER True. Should look at
government transfers to provide a baseline necessary level of health-care
to all individuals.
Because it increases GDP, increased health care spending is a sign of a
robust economy. - ANSWER True. Advancement in technology has a great
impact on health expenditure causing increase in health care spending.
Increase in health spending has a direct relation with increased GDP.
Increased GDP is a sign of increased consumer purchasing power.
Increase in purchasing power implies a strong and health economy, i.e
robust economy.
The variation in the design of health care systems is a sure sign of
inefficiency. - ANSWER True, There have been many variations in hospital
procedures, technologies, testing and costs, however, there has been a
good impact on the health care system. To take up variation in design
requires lots of expenditure, which ultimately affects the way of treating
patients in an inefficient manner.
The evolution of health care technologies causes the efficient design of a
health care system to change over time. - ANSWER True. Health care
, technologies continue to evolve changing the overall design of the health
care system in order to bring improvements in patent care and treatment.
Technology can lead to reduces costs with can increase the accessibility of
health care. Other education improvements via technology can provide
better information for patients and physicians.
All production points on the production possibilities frontier are allocatively
efficient. - ANSWER False. Points on the PPF show the productive
efficiency and not the allocative efficiency. The PPF only shows the
potential output.
Scarcity of resources results from inefficiency. - ANSWER False. Scarcity
arises due to a system of unlimited wants constrained by limited resources.
Impossible to satiate everyone's desires given the resources provided on
earth. This results in scarcity.
There is no opportunity cost for applications of resources that are
technologically efficient, cost-effective, and allocatively efficient. - ANSWER
False. Opportunity cost is the cost of the next best alternative. Just
because a process meets all the efficiency criteria does not mean there are
not alternatives.
An equitable distribution of a good often implies an unequal distribution of
the good among members of society. - ANSWER True. Equitable does not
mean equal. Although in certain circumstances the equitable outcome
might involve equality, often it does not. For example, it may be deemed
equitable for a person with a chronic disease to receive more health care
compared to an identical person without a chronic disease.
A cost-effective allocation of productive resources must also be
technologically efficient. - ANSWER True. Technical efficiency means that
that you are able to produce the maximum possible amount of output from
the inputs used, given the chosen production method. A cost-effective
policy is the least-cost method of production from among all technically
efficient methods.
Pareto-efficient allocations always maximize welfare in society. - ANSWER
False. Pareto efficiency does not consider equity, it is only considered with
achieving efficient market allocations. You could have a situation where the
market is operating efficiently and still have an unequitable distribution of
