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EC248 Health Economics Final Exam 2026/2027 | 84 Questions & Answers | Health Systems, Economic Evaluation, Insurance, Physicians & Pharmaceuticals

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This EC248 Health Economics Final Exam 2026/2027 study resource contains 84 exam-style questions with answers covering the economics of health, health care and health systems. The material begins with the size and financing of the health-care sector, real health expenditure per capita, public-sector financing in Canada, drivers of health expenditure, the Canada Health Act, physician supply, Canadian health-system governance and measures of health outcomes. It then develops fundamental health-economics concepts such as opportunity cost, social welfare, technical efficiency, cost-effectiveness efficiency, allocative efficiency, the Pareto criterion, marginal analysis, horizontal and vertical equity, market power, barriers to entry, externalities, diminishing marginal utility, monopsony and asymmetric information. A substantial section examines economic evaluation in health care, including cost-benefit analysis, cost-effectiveness analysis, cost-utility analysis, QALYs, shadow prices, the human-capital approach, incremental cost-effectiveness and cost-utility ratios, net monetary benefit, discounting and the social optimum. These concepts are followed by questions on the economics of health production and demand, including consumption demand for health, the Grossman health-capital model, education and health, historical improvements in life expectancy, the urban penalty, demand for health care as a derived demand, health status, utilization, income and price elasticities, and evidence associated with the RAND Health Insurance Experiment. The exam also provides extensive practice on health-care markets and insurance economics. Topics include physician-patient agency, caring and other externalities, information asymmetry, small-area variations, supplier-induced demand, complements and substitutes in medical care, risk aversion and risk-loving behaviour, actuarially fair premiums, loading costs, moral hazard, adverse selection, risk pooling, risk adjustment and the access motive for purchasing health insurance. Health-care financing questions address direct payments, private insurance premiums, social insurance contributions, tax expenditures, private financing arrangements, risk-adjusted capitation, health-care funding and the principal-agent problem. The final sections concentrate on the economics of physicians, hospitals and pharmaceuticals. Students review fee-for-service payment, physician utility and practice behaviour, physician income and working hours, target-income models, physician regulation, implicit wages, the McGuire-Pauly model of supplier inducement, hospital organization, incomplete vertical integration, internal markets, drug regulation, formularies, generic-drug competition, pharmaceutical expenditure, and research and development by brand-name pharmaceutical manufacturers. The document therefore combines foundational microeconomic principles with their application to Canadian health-care policy, financing and delivery. Relevant students: This resource is particularly relevant to EC248 Health Economics students, undergraduate economics students, health economics and health policy students, Canadian health-system students, and learners reviewing economic evaluation, health insurance, physician behaviour, hospital economics and pharmaceutical markets. The uploaded material itself does not explicitly state a university name. EC248 is associated with Health Economics at Wilfrid Laurier University, but students should confirm that the questions correspond to their current course syllabus before using the document as an exam-preparation resource. Keywords: EC248 final exam, EC248 Health Economics, EC248 exam questions and answers, Health Economics final exam 2026, Health Economics , Canadian health care economics, Canada Health Act, health care financing, health systems economics, economic evaluation, cost benefit analysis, cost effectiveness analysis, cost utility analysis, QALY, health capital model, Grossman model, demand for health care, health care utilization, health insurance economics, moral hazard, adverse selection, risk pooling, supplier induced demand, physician economics, physician payment, fee for service, health care markets, hospital economics, pharmaceutical economics, pharmaceutical markets, health care expenditure, health policy economics, Wilfrid Laurier University EC248

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EC248 Final Exam 2026/2027
Exam Questions and Answers |
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Health care




a) is the most important determinant of health in OECD countries.

b) is the most expensive determinant of health in OECD countries.

c) spending continues to grow rapidly in most OECD countries.

d) sector is one of the largest sectors in most OECD countries. -

ANSWER ✔✔sector is one of the largest sectors in most OECD

countries.

What statement best describes a health system?

,a) Aspects of society that have an important bearing on the health care

of individuals and the population.

b) Aspects of society that have an important bearing on the health of

individuals and the population.

c) Aspects of society that have an important bearing on the health care

at the population level.

d) Aspects of society that have an important bearing on health at the

population level. - ANSWER ✔✔b) Aspects of society that have an

important bearing on the health of individuals and the population.

Rather than aggregate health expenditures, we often look at real

expenditures per capita. This calculation requires us to deflate the

aggregate expenditures by:




a) the purchasing power of the currency.

b) the size of the population.

c) the cost of health care.


d) Answers a. and b. are correct. - ANSWER ✔✔d) Answers a. and b.

are correct.

,Public sector financing covers about of health care expenditures in

Canada.




a) 100%

b) 70%

c) 50%


d) 30% - ANSWER ✔✔b) 70%


The following is not a driver of increased health care expenditures:




a) Increases in the quantity of health care

b) Increases in the quality of health care

c) Increases in the price of health care

d) Increases in the health care covered under public insurance -

ANSWER ✔✔d) Increases in the health care covered under public

insurance

How does Canada compare to other OECD countries regarding the

proportion of health care expenditures covered by public financing.




COPYRIGHT©PROFFKERRYMARTIN 2026/2027. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED

, a) the highest

b) relatively high

c) about the same


d) relatively low - ANSWER ✔✔d) relatively low


The principles of the Canada Health Act include all EXCEPT




a) Universality




b) Portability




c) Equity




d) Public Administration - ANSWER ✔✔c) Equity


In Canada, the supply of

physicians has




a) decreased substantially over time resulting in the current shortage.

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