WGU D223 HEALTHCARE POLICY AND
ECONOMICS COMPREHENSIVE EXAM
STUDY GUIDE COMPLETE QUESTIONS AND
SOLUTIONS
●● Choice
Answer: The act of selecting among alternatives because limited
resources prevent all wants and needs from being met.
●● Opportunity Cost
Answer: The value of the next-best alternative that is given up when a
choice is made.
●● Marginal Analysis
Answer: Comparing the additional benefit of an action with its
additional cost.
●● Self-Interest
Answer: The idea that individuals generally make decisions they believe
will benefit themselves.
●● Markets
,Answer: Systems in which buyers and sellers interact to exchange goods
and services.
●● Pricing
Answer: The process of determining the monetary value of a good or
service.
●● Supply
Answer: The quantity of a good or service that producers are willing and
able to provide at various prices.
●● Demand
Answer: The quantity of a good or service that consumers are willing
and able to purchase at various prices.
●● Law of Demand
Answer: As price increases, the quantity demanded generally decreases,
assuming other factors remain constant.
●● Law of Supply
Answer: As price increases, the quantity supplied generally increases,
assuming other factors remain constant.
●● Competition
, Answer: Rivalry among providers or organizations for consumers.
●● Efficiency
Answer: Using available resources in a way that produces the greatest
possible benefit while minimizing waste.
●● Allocative Efficiency
Answer: Resources are distributed to produce the goods and services
that society values most.
●● Technical Efficiency
Answer: Producing a desired outcome using the fewest possible
resources or achieving the greatest output from available resources.
●● Market Failure
Answer: A situation in which the free market does not efficiently
allocate resources.
●● Comparative Advantage
Answer: The ability to produce a good or service at a lower opportunity
cost than another.
●● Technological Change in Healthcare
ECONOMICS COMPREHENSIVE EXAM
STUDY GUIDE COMPLETE QUESTIONS AND
SOLUTIONS
●● Choice
Answer: The act of selecting among alternatives because limited
resources prevent all wants and needs from being met.
●● Opportunity Cost
Answer: The value of the next-best alternative that is given up when a
choice is made.
●● Marginal Analysis
Answer: Comparing the additional benefit of an action with its
additional cost.
●● Self-Interest
Answer: The idea that individuals generally make decisions they believe
will benefit themselves.
●● Markets
,Answer: Systems in which buyers and sellers interact to exchange goods
and services.
●● Pricing
Answer: The process of determining the monetary value of a good or
service.
●● Supply
Answer: The quantity of a good or service that producers are willing and
able to provide at various prices.
●● Demand
Answer: The quantity of a good or service that consumers are willing
and able to purchase at various prices.
●● Law of Demand
Answer: As price increases, the quantity demanded generally decreases,
assuming other factors remain constant.
●● Law of Supply
Answer: As price increases, the quantity supplied generally increases,
assuming other factors remain constant.
●● Competition
, Answer: Rivalry among providers or organizations for consumers.
●● Efficiency
Answer: Using available resources in a way that produces the greatest
possible benefit while minimizing waste.
●● Allocative Efficiency
Answer: Resources are distributed to produce the goods and services
that society values most.
●● Technical Efficiency
Answer: Producing a desired outcome using the fewest possible
resources or achieving the greatest output from available resources.
●● Market Failure
Answer: A situation in which the free market does not efficiently
allocate resources.
●● Comparative Advantage
Answer: The ability to produce a good or service at a lower opportunity
cost than another.
●● Technological Change in Healthcare
