MHA 710 EXAM 2 HEALTHCARE ECONOMICS
MOCK EXAM AND STUDY MATERIAL WITH KEY
CONCEPTS
◉ Many economists consider medical care a superior good. Which of
the following statements is true regarding a superior good.
Answer: As consumer income increases, consumers spend more on
superior goods.
A superior good has an income elasticity of demand greater than 1.
Both c and d are true of superior goods.
◉ Suppose you must rely exclusively on cost-effectiveness analysis
(CEA) to determine whether a category of people receives an
expensive, potentially life-saving, intervention. Which of the
following considerations must you keep in mind when making your
decision?
a.
CEA studies are considered the gold standard as far as evaluation
studies are concerned.
b.
CEA ignores the possibility that certain unidentified individuals in a
group may have a greater than normal positive response to the
treatment.
,c.
CEA studies take a long time to conduct and are expensive to
evaluate.
d.
CEA studies are subjective and rely on the judgment of clinicians and
researchers.
e.
CEA determines the efficient threshold above which treatments are
unnecessarily expensive..
Answer: b. CEA ignores the possibility that certain unidentified
individuals in a group may have a greater than normal positive
response to the treatment.
◉ Suppose your assignment is to use the standard time trade-off
approach to measure quality of life. You are given the following
information: An individual is faced with living the remaining 10
years of their life suffering from severe osteoporosis. The individual
reveals that they would be willing to give up four of those years to
live the remaining six in perfect health. What is the utility of one
year in a chronic health state relative to perfect health?.
Answer: 0
◉ The intangible costs associated with reduced quality of life
include:.
Answer: pain and suffering.
, ◉ Which of the following measures of effectiveness is an
intermediate measure?.
Answer: Hip fracture
◉ The standard cut-off for cost per quality-adjusted life year (QALY)
used by most governmental decision makers is set in terms of a
multiple of national per capita income. The value of the threshold is
usually what percent of national per capita income?.
Answer: 100
◉ A physician's ability to induce demand is greatly enhanced when:.
Answer: patients have difficulty gathering and processing
information.
◉ Researchers use cost-of-illness studies for all of the following
except to:.
Answer: compare the relative efficiency of treating various
conditions.
◉ According to Grossman (1972), how is the demand for medical
care determined?.
Answer: It is derived from the demand for health.
MOCK EXAM AND STUDY MATERIAL WITH KEY
CONCEPTS
◉ Many economists consider medical care a superior good. Which of
the following statements is true regarding a superior good.
Answer: As consumer income increases, consumers spend more on
superior goods.
A superior good has an income elasticity of demand greater than 1.
Both c and d are true of superior goods.
◉ Suppose you must rely exclusively on cost-effectiveness analysis
(CEA) to determine whether a category of people receives an
expensive, potentially life-saving, intervention. Which of the
following considerations must you keep in mind when making your
decision?
a.
CEA studies are considered the gold standard as far as evaluation
studies are concerned.
b.
CEA ignores the possibility that certain unidentified individuals in a
group may have a greater than normal positive response to the
treatment.
,c.
CEA studies take a long time to conduct and are expensive to
evaluate.
d.
CEA studies are subjective and rely on the judgment of clinicians and
researchers.
e.
CEA determines the efficient threshold above which treatments are
unnecessarily expensive..
Answer: b. CEA ignores the possibility that certain unidentified
individuals in a group may have a greater than normal positive
response to the treatment.
◉ Suppose your assignment is to use the standard time trade-off
approach to measure quality of life. You are given the following
information: An individual is faced with living the remaining 10
years of their life suffering from severe osteoporosis. The individual
reveals that they would be willing to give up four of those years to
live the remaining six in perfect health. What is the utility of one
year in a chronic health state relative to perfect health?.
Answer: 0
◉ The intangible costs associated with reduced quality of life
include:.
Answer: pain and suffering.
, ◉ Which of the following measures of effectiveness is an
intermediate measure?.
Answer: Hip fracture
◉ The standard cut-off for cost per quality-adjusted life year (QALY)
used by most governmental decision makers is set in terms of a
multiple of national per capita income. The value of the threshold is
usually what percent of national per capita income?.
Answer: 100
◉ A physician's ability to induce demand is greatly enhanced when:.
Answer: patients have difficulty gathering and processing
information.
◉ Researchers use cost-of-illness studies for all of the following
except to:.
Answer: compare the relative efficiency of treating various
conditions.
◉ According to Grossman (1972), how is the demand for medical
care determined?.
Answer: It is derived from the demand for health.
