LSUS MHA 710 Economics Exam 1 Questions And
100% Correct Answers
Which of the following is the largest category of health care spending in the United
States? ANSWER Hospital Care
The immediate effect of a shortage of hospital beds in the market for hospital services
is: ANSWER Upward pressure on the price of a hospital stay.
All of the following will shift the medial care supply curve, except: - ANSWER A change
in the percent of the population that has health insurance.
Assuming providers will accommodate patient desires, what would be the impact of a
binding price ceiling in the health care market? - ANSWER Price will be pushed down to
comply with the price ceiling & quantity will increase.
Suppose the U.S. Food & Drug Administration limits the quantity of prescription opiates
that can be produced & sold in the U.S. market. What will happen to the market for
drugs used to control chronic pain the United States? - ANSWER The price of
prescription opiates will rise & the quantity consumed will fall.
The following graph shows the market for CT scanners in the United States:
Assume that the initial equilibrium is at D1S1 and that the equilibrium price and quantity
is $1.20 million per machine. If the government puts a $100,000 per scanner excise tax
on every new scanner sold, the new equilibrium price will be: - ANSWER less than $1.30
million.
Suppose robotic technology improves the outcomes of abdominal surgery-less time to
complete the surgery, faster healing times and fewer errors. What happens to the
demand for abdominal surgery using the new technology? - ANSWER The demand for
, robot-assisted surgery will rise, & prices will rise.
If a firm is experiencing economies of scale: - ANSWER Its average cost curve is
negatively sloped as output rises.
Which of the following does NOT contribute to wasteful spending in medical care? -
ANSWER Price transparency.
Which of the following statements is based on positive analysis? - ANSWER High health
care prices are one of the primary reasons that the United States spends more on
medical care than other countries.
Which of the following is NOT considered to be a factor in the recent slowing of health
care spending? - ANSWER Growing U.S. gross domestic product (GDP).
If two women receive the same hip replacement procedure at a hospital, but are
charged differently, it is an example of: - ANSWER Price discrimination.
Which of the following is NOT a personal health expenditure? - ANSWER Program
administration.
Inoculation programs against certain disease such as small pox, polio, & whooping
cough create: - ANSWER Positive externalities in consumption.
The cost to society resulting from taxation to finance government spending is called: -
ANSWER deadweight loss.
In the 1960s, people paid for most of their medical care out-of-pocket. More insurance,
private & public, replaced out-of-pocket spending as the major source of payment. By
2020, how much, as a percentage, of health care spending was individual's project to
pay? - ANSWER 10.4 percent
100% Correct Answers
Which of the following is the largest category of health care spending in the United
States? ANSWER Hospital Care
The immediate effect of a shortage of hospital beds in the market for hospital services
is: ANSWER Upward pressure on the price of a hospital stay.
All of the following will shift the medial care supply curve, except: - ANSWER A change
in the percent of the population that has health insurance.
Assuming providers will accommodate patient desires, what would be the impact of a
binding price ceiling in the health care market? - ANSWER Price will be pushed down to
comply with the price ceiling & quantity will increase.
Suppose the U.S. Food & Drug Administration limits the quantity of prescription opiates
that can be produced & sold in the U.S. market. What will happen to the market for
drugs used to control chronic pain the United States? - ANSWER The price of
prescription opiates will rise & the quantity consumed will fall.
The following graph shows the market for CT scanners in the United States:
Assume that the initial equilibrium is at D1S1 and that the equilibrium price and quantity
is $1.20 million per machine. If the government puts a $100,000 per scanner excise tax
on every new scanner sold, the new equilibrium price will be: - ANSWER less than $1.30
million.
Suppose robotic technology improves the outcomes of abdominal surgery-less time to
complete the surgery, faster healing times and fewer errors. What happens to the
demand for abdominal surgery using the new technology? - ANSWER The demand for
, robot-assisted surgery will rise, & prices will rise.
If a firm is experiencing economies of scale: - ANSWER Its average cost curve is
negatively sloped as output rises.
Which of the following does NOT contribute to wasteful spending in medical care? -
ANSWER Price transparency.
Which of the following statements is based on positive analysis? - ANSWER High health
care prices are one of the primary reasons that the United States spends more on
medical care than other countries.
Which of the following is NOT considered to be a factor in the recent slowing of health
care spending? - ANSWER Growing U.S. gross domestic product (GDP).
If two women receive the same hip replacement procedure at a hospital, but are
charged differently, it is an example of: - ANSWER Price discrimination.
Which of the following is NOT a personal health expenditure? - ANSWER Program
administration.
Inoculation programs against certain disease such as small pox, polio, & whooping
cough create: - ANSWER Positive externalities in consumption.
The cost to society resulting from taxation to finance government spending is called: -
ANSWER deadweight loss.
In the 1960s, people paid for most of their medical care out-of-pocket. More insurance,
private & public, replaced out-of-pocket spending as the major source of payment. By
2020, how much, as a percentage, of health care spending was individual's project to
pay? - ANSWER 10.4 percent
