LSUS MHA 710 ECONOMICS EXAM 2 |WITH ACTUAL
QUESTIONS AND CORRECT DETAILED ANSWERS |PRE-
EVALUATED A+
Which of the following is the result of providers having more information about
treatment alternatives than their patients do? - ANSWER-Principal-agent problem.
The number one cause of death in the United States was ______ in the 1980. By 2018, it
was _____. - ANSWER-Heart disease ; heart disease
One result of asymmetric information in health insurance markets is: - ANSWER-Adverse
selection.
Research associates obesity with a higher risk of all the following conditions except: -
ANSWER-Type 1 Diabetes.
The accompanying diagram depicts the relationship between health status & medical
care spending for particular country. Assume the current spending level is S1 on TP1. All
of the statements below are true? - ANSWER-S1 levels of spending are often described
as spending on the flat of the curve.
According to Grossman (1972), how is the demand for medical care determined? -
ANSWER-It is derived from the demand for health.
, All of the following statements are true regarding social insurance, except: - ANSWER-It
is usually experience-rated, with premiums based on ability to pay.
The goal of health insurance is to: - ANSWER-Collect sufficient premiums to cover all
possible losses.
The nature of health care delivery will be different in the future due to: - ANSWER-A
rising percentage of eldering in the total population.
A physician's ability to induce demand is greatly enhanced when: - ANSWER-Patients
have difficulty gathering & processing information.
People buy insurance: - ANSWER-Because they are risk-averse.
Infant mortality rate is associated with low birth weight. By what percent would the U.S.
infant mortality rate fall, if the United States had the same birth weight distribution as
Sweden? - ANSWER-34
A major factor contributing to the growth in employee-based health insurance in the
United States has been: - ANSWER-The tax-free treatment of health insurance as an
employee benefit.
Which of the following is least responsible for the reduction in mortality rates in Europe
& North America? - ANSWER-More effective medical interventions.
Insurance works best in situations where: - ANSWER-There is a low probability of a large
loss.
QUESTIONS AND CORRECT DETAILED ANSWERS |PRE-
EVALUATED A+
Which of the following is the result of providers having more information about
treatment alternatives than their patients do? - ANSWER-Principal-agent problem.
The number one cause of death in the United States was ______ in the 1980. By 2018, it
was _____. - ANSWER-Heart disease ; heart disease
One result of asymmetric information in health insurance markets is: - ANSWER-Adverse
selection.
Research associates obesity with a higher risk of all the following conditions except: -
ANSWER-Type 1 Diabetes.
The accompanying diagram depicts the relationship between health status & medical
care spending for particular country. Assume the current spending level is S1 on TP1. All
of the statements below are true? - ANSWER-S1 levels of spending are often described
as spending on the flat of the curve.
According to Grossman (1972), how is the demand for medical care determined? -
ANSWER-It is derived from the demand for health.
, All of the following statements are true regarding social insurance, except: - ANSWER-It
is usually experience-rated, with premiums based on ability to pay.
The goal of health insurance is to: - ANSWER-Collect sufficient premiums to cover all
possible losses.
The nature of health care delivery will be different in the future due to: - ANSWER-A
rising percentage of eldering in the total population.
A physician's ability to induce demand is greatly enhanced when: - ANSWER-Patients
have difficulty gathering & processing information.
People buy insurance: - ANSWER-Because they are risk-averse.
Infant mortality rate is associated with low birth weight. By what percent would the U.S.
infant mortality rate fall, if the United States had the same birth weight distribution as
Sweden? - ANSWER-34
A major factor contributing to the growth in employee-based health insurance in the
United States has been: - ANSWER-The tax-free treatment of health insurance as an
employee benefit.
Which of the following is least responsible for the reduction in mortality rates in Europe
& North America? - ANSWER-More effective medical interventions.
Insurance works best in situations where: - ANSWER-There is a low probability of a large
loss.
