LSUS MHA 710 Economics Latest Update 2024 Exam/
Actual Exam Questions with Correct Verified Answers/
Graded A+
Which of the following is the result of providers having more information about treatment
alternatives than their patients do? - Correct Answer - Principal-agent problem.
The number one cause of death in the United States was ______ in the 1980. By 2018,
it was _____. - Correct Answer - Heart disease; heart disease
One result of asymmetric information in health insurance markets is: - Correct Answer -
Adverse selection.
Research associates obesity with a higher risk of all the following conditions except: -
Correct 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? - Correct Answer - S1 levels of spending are often
described as spending on the flat of the curve.
Which of the following represents the largest category of health care spending in the
United States? - Correct Answer - Hospital Care
The direct effect of a shortage of hospital beds in a hospital services market is: - Correct
Answer - Upward pressure on the price of a hospital stay.
Which of the following does NOT contribute to wasteful spending in medical care? -
Correct Answer - Price transparency.
pg. 1
,Which of the following statements is based on positive analysis? - Correct 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? - Correct 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: - Correct Answer - Price discrimination.
Which of the following is NOT a personal health expenditure? - Correct Answer -
Program administration.
If price elasticity is known to be -0.15, what happens to quantity when the price of
services at Urban General falls by 10 percent? - Correct Answer - Quantity demanded
increases by 1.5 percent.
What term is used when physicians know more about alternative treatments than their
patients do? - Correct Answer - Asymmetric information.
A health insurance arrangement where individuals have access to health care in
exchange for a set premium is called: - Correct Answer - Third-party payment system.
According to Grossman (1972), how is the demand for medical care determined? -
Correct Answer - It is derived from the demand for health.
All of the following statements are true regarding social insurance, except: - Correct
Answer - It is usually experience-rated, with premiums based on ability to pay.
Which of the following statements is most true regarding the experience of reforming
medical care in the United States? - Correct Answer - Moral hazard is a powerful force.
pg. 2
, Individuals on opposite sides of the political spectrum typically voice opposite
viewpoints on universal access & universal coverage. All of the statements concerning
the 2 concepts are true except which of the following? - Correct Answer - Universal
access usually requires mandatory participation, while universal coverage is a voluntary
system.
To better control overall Medicaid spending, most states: - Correct Answer - Enroll all
eligible recipients in managed care plans.
Which of the following countries placed highest on the healthcare access & quality
(HAQ) index? - Correct Answer - Switzerland.
If the healthcare access & quality (HAQ) index of the United States is 81.3 & its
healthcare access & quality frontier is 91.5, what is the value of the healthcare access &
quality gap? - Correct Answer - 10.2
More than 90% of the privately insured, nonelderly population in the United States
receives group coverage through the workplace. All of the following are true about
employer-sponsored insurance (ESI) in the United States except which statement? -
Correct Answer - Employees will not purchase insurance voluntarily. The employer must
be involved.
What is the name of the health care reform feature where employers can either provide
health care coverage to their employees or pay a payroll tax to fund government-
provided insurance? - Correct Answer - Play-or-Pay.
The average federal medical assistance (FMAP) percentage across the United States
received by the typical state is approximately what percentage of overall Medicaid
spending? - Correct Answer - 60%.
Which of the following provisions included in the Affordable Care Act (ACA) was
responsible for the largest number of newly insured? - Correct Answer - Expansion of
Medicaid.
pg. 3
Actual Exam Questions with Correct Verified Answers/
Graded A+
Which of the following is the result of providers having more information about treatment
alternatives than their patients do? - Correct Answer - Principal-agent problem.
The number one cause of death in the United States was ______ in the 1980. By 2018,
it was _____. - Correct Answer - Heart disease; heart disease
One result of asymmetric information in health insurance markets is: - Correct Answer -
Adverse selection.
Research associates obesity with a higher risk of all the following conditions except: -
Correct 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? - Correct Answer - S1 levels of spending are often
described as spending on the flat of the curve.
Which of the following represents the largest category of health care spending in the
United States? - Correct Answer - Hospital Care
The direct effect of a shortage of hospital beds in a hospital services market is: - Correct
Answer - Upward pressure on the price of a hospital stay.
Which of the following does NOT contribute to wasteful spending in medical care? -
Correct Answer - Price transparency.
pg. 1
,Which of the following statements is based on positive analysis? - Correct 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? - Correct 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: - Correct Answer - Price discrimination.
Which of the following is NOT a personal health expenditure? - Correct Answer -
Program administration.
If price elasticity is known to be -0.15, what happens to quantity when the price of
services at Urban General falls by 10 percent? - Correct Answer - Quantity demanded
increases by 1.5 percent.
What term is used when physicians know more about alternative treatments than their
patients do? - Correct Answer - Asymmetric information.
A health insurance arrangement where individuals have access to health care in
exchange for a set premium is called: - Correct Answer - Third-party payment system.
According to Grossman (1972), how is the demand for medical care determined? -
Correct Answer - It is derived from the demand for health.
All of the following statements are true regarding social insurance, except: - Correct
Answer - It is usually experience-rated, with premiums based on ability to pay.
Which of the following statements is most true regarding the experience of reforming
medical care in the United States? - Correct Answer - Moral hazard is a powerful force.
pg. 2
, Individuals on opposite sides of the political spectrum typically voice opposite
viewpoints on universal access & universal coverage. All of the statements concerning
the 2 concepts are true except which of the following? - Correct Answer - Universal
access usually requires mandatory participation, while universal coverage is a voluntary
system.
To better control overall Medicaid spending, most states: - Correct Answer - Enroll all
eligible recipients in managed care plans.
Which of the following countries placed highest on the healthcare access & quality
(HAQ) index? - Correct Answer - Switzerland.
If the healthcare access & quality (HAQ) index of the United States is 81.3 & its
healthcare access & quality frontier is 91.5, what is the value of the healthcare access &
quality gap? - Correct Answer - 10.2
More than 90% of the privately insured, nonelderly population in the United States
receives group coverage through the workplace. All of the following are true about
employer-sponsored insurance (ESI) in the United States except which statement? -
Correct Answer - Employees will not purchase insurance voluntarily. The employer must
be involved.
What is the name of the health care reform feature where employers can either provide
health care coverage to their employees or pay a payroll tax to fund government-
provided insurance? - Correct Answer - Play-or-Pay.
The average federal medical assistance (FMAP) percentage across the United States
received by the typical state is approximately what percentage of overall Medicaid
spending? - Correct Answer - 60%.
Which of the following provisions included in the Affordable Care Act (ACA) was
responsible for the largest number of newly insured? - Correct Answer - Expansion of
Medicaid.
pg. 3
