LSUS MHA 710 Economics Exam 2 Questions And
100% Correct Answers
Which of the following arises because providers have more information about treatment
alternatives than their patients do? - ANSWER Principal-agent problem.
The leading cause of death in the United States was ______ in the 1980. By 2018, it was
_____. - ANSWER Heart disease; heart disease
One consequence of asymmetric information in health insurance markets is: - ANSWER
Adverse selection.
Studies link obesity to an increased risk of all the following conditions except: - ANSWER
Type 1 Diabetes.
The graph below depicts health status & medical care spending for a particular country.
Assume that current spending is S1 on TP1. Which of the following statements is/are
true? - ANSWER S1 levels of spending are sometimes referred to as spending on the flat
of the curve.
According to Grossman 1972, how is the demand for medical care determined? -
ANSWER Derived from the demand for health.
All of the following statements are true regarding social insurance, except: - ANSWER
Usual experience-rated, with premiums related to ability to pay.
The objective of health insurance is to: - ANSWER Collect enough premium to pay for 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 linked to low birth weight. If the United States had the same birth
weight distribution as Sweden, by how many percents would the U.S. infant mortality
rate decline? - ANSWER 34
A major reason behind the growth of 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 decrease in mortality rates in Europe
& North America? - ANSWER More effective medical interventions.
Insurance works most effectively when: - ANSWER There is low probability of a large
loss.
Looking at the price of physician services vs. the quantity supplied in the graph below,
the shift in the demand curve to D1 results in a new equilibrium at point c wit P1 and Q1,
which would mean: - ANSWER An increase in total spending.
All of the following types of analyses address the questions related to optimal resource
allocation, except: - ANSWER Comparative-effectiveness analysis.
What accounts for over half of the life expectancy gap between U.S. & Canada? -
ANSWER Obesity
100% Correct Answers
Which of the following arises because providers have more information about treatment
alternatives than their patients do? - ANSWER Principal-agent problem.
The leading cause of death in the United States was ______ in the 1980. By 2018, it was
_____. - ANSWER Heart disease; heart disease
One consequence of asymmetric information in health insurance markets is: - ANSWER
Adverse selection.
Studies link obesity to an increased risk of all the following conditions except: - ANSWER
Type 1 Diabetes.
The graph below depicts health status & medical care spending for a particular country.
Assume that current spending is S1 on TP1. Which of the following statements is/are
true? - ANSWER S1 levels of spending are sometimes referred to as spending on the flat
of the curve.
According to Grossman 1972, how is the demand for medical care determined? -
ANSWER Derived from the demand for health.
All of the following statements are true regarding social insurance, except: - ANSWER
Usual experience-rated, with premiums related to ability to pay.
The objective of health insurance is to: - ANSWER Collect enough premium to pay for 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 linked to low birth weight. If the United States had the same birth
weight distribution as Sweden, by how many percents would the U.S. infant mortality
rate decline? - ANSWER 34
A major reason behind the growth of 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 decrease in mortality rates in Europe
& North America? - ANSWER More effective medical interventions.
Insurance works most effectively when: - ANSWER There is low probability of a large
loss.
Looking at the price of physician services vs. the quantity supplied in the graph below,
the shift in the demand curve to D1 results in a new equilibrium at point c wit P1 and Q1,
which would mean: - ANSWER An increase in total spending.
All of the following types of analyses address the questions related to optimal resource
allocation, except: - ANSWER Comparative-effectiveness analysis.
What accounts for over half of the life expectancy gap between U.S. & Canada? -
ANSWER Obesity
