Economics and Financial Management for Nurses and Nurse Leaders
3rd Edition Penner Test Bank
Contents
1. Economics of Health Care
2. Health Insurance and Reimbursement
3. Managed Care and ACOs
4. Measuring Nursing Care
5. Reporting and Managing Budgets
6. Budget Planning
7. Special Purpose, Capital, and Other Budgets
8. Cost Finding, Break Even, and Charges
9. Comparing Costs and Benefits
10. Writing a Business Plan
11. Health Program Grant Writing
12. Assessing Financial Health
13. Entrepreneurship and Practice Management
14. Ethical Issues and International Health Care Systems
15. Health Policy and Future Trends
TEST
. 1
, CHAPTER 1
Economics of Health Care
1. Health care is an important segment of the U.S. economy because
a. The greater the quantity of hip replacements, the fewer the automobiles supplied.
b. Nurses keep fighting for higher and higher wages.
c. Health care costs have been completely controlled by managed care.
d. National health care expenditures are an increasing portion of the GDP.
2. Two influences that increase the quantity of health care demanded include
a. Income and insurance.
b. Ancient history and monopsony.
c. Hospital revenue and transparency.
d. Market power and market failure.
3. Which of the following is NOT a characteristic of a market surplus?
a. The product’s market price is higher than the equilibrium price.
b. Producers reduce the product’s price to bring the market to competitive equilibrium.
c. The quantity demanded for the T
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d. The quantity supplied exceeds the quantity demanded by consumers.
4. One purpose of a union is
a. To guarantee that all nurses have jobs.
b. To influence the market power of nurse employers.
c. To ensure that nurses are assigned only three patients per shift.
d. To allow hospitals to pay nurses based only on seniority.
5. One effective way to resolve a nursing shortage is
a. Replace all RNs with nurse assistants.
b. Ask physicians to write fewer orders.
c. Increase nurses’ wages.
d. Close hospitals.
6. Concerns about health care costs arose
a. Soon after the passage of Medicare and Medicaid.
b. At the dawn of human history.
c. As a result of World War II shortages.
d. When U.S. health care costs surpassed 15% of GDP.
0 .
,7. The price for a good or service falls. What likely happens to the quantity supplied?
a. Increases.
b. Levels off.
c. Is not affected by price.
d. Decreases.
8. A good example of an input is
a. A nurse giving care to a patient who is hospitalized.
b. A patient arriving at the emergency room needing care.
c. A patient leaving a clinic after seeing a nurse practitioner.
d. A hospital building a new surgical center.
9. One reason health care markets are not competitive is that
a. There are often no suitable substitutes.
b. Health care markets are based on communist theory.
c. No one can enter or leave a health care market.
d. The prices for medical care are too high.
10. An example of public goods is
a. A federal holiday.
b. Social Security taxes.
c. Market equilibrium.
d. Safe drinking water.
Answer key Chapter. 1 1d, 2a, 3c, 4b, 5c, 6a, 7d, 8b, 9a, 10d
. 1
, CHAPTER 2
Health Insurance and Reimbursement
1. What is an important characteristic of asymmetric information in health care markets?
a. Physicians always know more about a patient’s condition than the patient.
b. Patients always know more about their condition than the physician.
c. One party has knowledge that the other party does not.
d. One party has to pay the other party for information.
2. Americans who do not have health insurance not only face increased health risks, but
a. They face financial risks such as credit problems and bankruptcy.
b. They are always poor and unemployed.
c. They should stop trying to obtain preventive care.
d. They are automatically enrolled in Medicaid.
3. Nearly a third of U.S. health expenditures
a. Are allocated to the care of children.
b. Go to support hospital services.
c. Fund public health programs.
d. Are spent on pharmaceuticals.
4. An example of cost shifting is
a. Requiring health plan members to pay an annual premium.
b. Finding ways to reduce waste and improve the collection of payments.
c. Dropping out of one health plan because another plan seems better.
d. Charging private payers more to cover other unreimbursed costs.
5. Coinsurance represents the percent of health costs the insurer requires the consumer to pay, while
a. Deductibles have been outlawed by the ACA.
b. A lifetime cap is required to control excessive costs.
c. A co-payment is another form of cost sharing.
d. Cost sharing is not a concern if the consumer is insured.
6. People need health insurance
a. Whether they are healthy or unhealthy.
b. Only if they suddenly feel ill.
c. Once they turn 65 years.
d. If it seems affordable and comprehensive.
2 .
3rd Edition Penner Test Bank
Contents
1. Economics of Health Care
2. Health Insurance and Reimbursement
3. Managed Care and ACOs
4. Measuring Nursing Care
5. Reporting and Managing Budgets
6. Budget Planning
7. Special Purpose, Capital, and Other Budgets
8. Cost Finding, Break Even, and Charges
9. Comparing Costs and Benefits
10. Writing a Business Plan
11. Health Program Grant Writing
12. Assessing Financial Health
13. Entrepreneurship and Practice Management
14. Ethical Issues and International Health Care Systems
15. Health Policy and Future Trends
TEST
. 1
, CHAPTER 1
Economics of Health Care
1. Health care is an important segment of the U.S. economy because
a. The greater the quantity of hip replacements, the fewer the automobiles supplied.
b. Nurses keep fighting for higher and higher wages.
c. Health care costs have been completely controlled by managed care.
d. National health care expenditures are an increasing portion of the GDP.
2. Two influences that increase the quantity of health care demanded include
a. Income and insurance.
b. Ancient history and monopsony.
c. Hospital revenue and transparency.
d. Market power and market failure.
3. Which of the following is NOT a characteristic of a market surplus?
a. The product’s market price is higher than the equilibrium price.
b. Producers reduce the product’s price to bring the market to competitive equilibrium.
c. The quantity demanded for the T
prE
odS
ucTt B
exA
ceN
edK
sSthE
e qLuL
anE
titR
y.suC
ppO
lieMd.
d. The quantity supplied exceeds the quantity demanded by consumers.
4. One purpose of a union is
a. To guarantee that all nurses have jobs.
b. To influence the market power of nurse employers.
c. To ensure that nurses are assigned only three patients per shift.
d. To allow hospitals to pay nurses based only on seniority.
5. One effective way to resolve a nursing shortage is
a. Replace all RNs with nurse assistants.
b. Ask physicians to write fewer orders.
c. Increase nurses’ wages.
d. Close hospitals.
6. Concerns about health care costs arose
a. Soon after the passage of Medicare and Medicaid.
b. At the dawn of human history.
c. As a result of World War II shortages.
d. When U.S. health care costs surpassed 15% of GDP.
0 .
,7. The price for a good or service falls. What likely happens to the quantity supplied?
a. Increases.
b. Levels off.
c. Is not affected by price.
d. Decreases.
8. A good example of an input is
a. A nurse giving care to a patient who is hospitalized.
b. A patient arriving at the emergency room needing care.
c. A patient leaving a clinic after seeing a nurse practitioner.
d. A hospital building a new surgical center.
9. One reason health care markets are not competitive is that
a. There are often no suitable substitutes.
b. Health care markets are based on communist theory.
c. No one can enter or leave a health care market.
d. The prices for medical care are too high.
10. An example of public goods is
a. A federal holiday.
b. Social Security taxes.
c. Market equilibrium.
d. Safe drinking water.
Answer key Chapter. 1 1d, 2a, 3c, 4b, 5c, 6a, 7d, 8b, 9a, 10d
. 1
, CHAPTER 2
Health Insurance and Reimbursement
1. What is an important characteristic of asymmetric information in health care markets?
a. Physicians always know more about a patient’s condition than the patient.
b. Patients always know more about their condition than the physician.
c. One party has knowledge that the other party does not.
d. One party has to pay the other party for information.
2. Americans who do not have health insurance not only face increased health risks, but
a. They face financial risks such as credit problems and bankruptcy.
b. They are always poor and unemployed.
c. They should stop trying to obtain preventive care.
d. They are automatically enrolled in Medicaid.
3. Nearly a third of U.S. health expenditures
a. Are allocated to the care of children.
b. Go to support hospital services.
c. Fund public health programs.
d. Are spent on pharmaceuticals.
4. An example of cost shifting is
a. Requiring health plan members to pay an annual premium.
b. Finding ways to reduce waste and improve the collection of payments.
c. Dropping out of one health plan because another plan seems better.
d. Charging private payers more to cover other unreimbursed costs.
5. Coinsurance represents the percent of health costs the insurer requires the consumer to pay, while
a. Deductibles have been outlawed by the ACA.
b. A lifetime cap is required to control excessive costs.
c. A co-payment is another form of cost sharing.
d. Cost sharing is not a concern if the consumer is insured.
6. People need health insurance
a. Whether they are healthy or unhealthy.
b. Only if they suddenly feel ill.
c. Once they turn 65 years.
d. If it seems affordable and comprehensive.
2 .
