,Getzen’slHealthlEconomicslandlFinancing,lFifthlEdition
TestlBank
File:lc01;lChapterl1lChoices:lMoney,lMedicine,landlHealth
I.1.AlTrue/False
1) Overlthelpastl100lyears,loutloflpocketlexpenditureslforlhealthlcarelserviceslbylindivid
uals
haveldecreasedlfromlaboutl50%ltollesslthanl10%.lAnsw
er:lFalse.
Response:l81%lpersonallexpenditureslinl1929;l11%lpersonallexpenditureslinl2012.lReference:l
1.2lFlowloflFunds/SourcesloflFinancing.
Level:lEasy
2) Thirdlpartylpayerslaccountlforl60%loflalllhealthlcarelexpenditureslinl2012.lAnswer
:lFalse.
Response:l89%loflalllhealthlcarelexpenditureslinl2012larelthroughlthird-partylfinancing.
Reference:l1.2lFlowloflFunds/SourcesloflFinancing.lLev
el:lEasy
3) Rankingleveryonelbylthelamountlspentlonlmedicallcare,l70lpercentlofltheltotall(all
expenditureslforlalllpeople)lislaccountedlforlbyltheltopl10lpercentloflpatients.
Thislphenomenon
islcalledlcostlshifting.lA
nswer:lFalse.
Response:lThelstatisticslarelcorrect;lthelexplanationlislincorrect.lThelsituationldescribe
slonlylthe
factlthatlmedicallexpenseslarelincurredlunevenlylacrosslallloflthelpopulation,landldoeslnot
specifylwholpayslthatl70lpercentlshareloflthelnation’slhealthcarelbill.lTheltermlcostlshi
fting,
however,lincorporateslthelcomparisonloflwholincurredlthelexpenseslversuslwholpaidlthelbi
ll.
Reference:l1.1lWhatlIslEconomics?/FinancinglHealthlCarelANDl1.2lFlowloflFunds/Sourceslof
Financing.lLe
vel:lMediumlI.
1.B
4) NotlonlylislthelshareloflthelGDPlgoingltolhealthlcarelhigherlinl2012lthanlinl1929,lthe
lwages
oflhealthlcarelworkerslhavelrisenlmorelrapidlylthanlforlotherltypeslofllabor.lAnswer:lTru
e.
Chapterl1
Copyrightl©l2013lJohnlWileyl&lSons,lInc.l1
,Getzen’slHealthlEconomicslandlFinancing,lFifthlEdition
TestlBank
Reference:l1.2lFlowloflFunds/lHealthlCarelProviders:lThelUsesloflFunds.lLevel:l
Easy
5) ThelFlowloflFundslidealemphasizeslthatltotalldollarslspentlbylindividuals,lgovern
mentland
otherlthirdlpartylpayerslforlhealthlcarelmustlequalltotallincomelearnedlbylhealthlcarelprovi
ders,
administratorslandlotherlhealthlcarelworkers.lAn
swer:lTrue.
Reference:l1.2lFlowloflFunds.lLe
vel:lEasy
I.1.C
I.1.D
6) Thelhospitallopenslalcancerlcenterlinlanladjacentlabandonedlbuilding.lSincelitlwaslan
abandonedlbuilding,ltherelarelnolopportunitylcostsloflthisldecision.lAnswer:lF
alse.
Response:lThelbuilding,laslwelllaslalllotherlresourceslthatlwerelinvestedlintolthelcancerlce
nter,
couldlhavelbeenlusedlinlanlalternatelway;ltolopenlalwomen’slhealthlcenter,lforlinstance.lThe
foregonelbenefitslfromlopeninglalwomen’slhealthlcenterlwouldlbelthelopportunitylcostloflt
his
decision.
Reference:l1.3lEconomicslPrincipleslaslConceptuallTools/OpportunitylCostlLeve
l:lMedium
I.1.E
7) SocioeconomicldifferenceslinlmortalitylfoundlinlthelU.S.larelmostllikelylattri
butableltollack
ofluniversallhealthlinsurancelcoverage.lAn
swer:lFalse.
Response:lSocioeconomicldifferenceslinlmortalitylarelnoticedlinlotherlOECDlcountrieslasl
well
aslinlpoorerlcountriesllikelGhanalandlBangladesh.lRef
erence:l1.4lHealthlDisparities.
Level:lMediuml
I.1.F
I.1.G
I.1.H
8) Whenlaldruglcompanyladvertiseslitlwilllprovidelalprescriptionldruglatlnolchargeltolcert
ain
individualslwholcannotlaffordlaldoctorlprescribedldrug,lcostslarelmostllikelylbeinglshiftedl
away
fromlindividualslwholarelpayinglhighlpricesltolthoselwholarelpayinglnothing.lAnswer:lFals
e.
Response:lCostslarelbeinglshiftedltolindividualslwholarelpayinglhighlpriceslfromlthoselwhola
re
payinglnothing.
Chapterl1
Copyrightl©l2013lJohnlWileyl&lSons,lInc.l2
, Getzen’slHealthlEconomicslandlFinancing,lFifthlEdition
TestlBank
Reference:l1.1lWhatlIslEconomics?/FinancinglHealthlCare.lLev
el:lEasy
I.1.I
I.1.J
I.1.K
9) Alhospitallsystemlislrewardedlwithlhigherlprofitslinlthelshortltermlwhenlitlimpleme
nts
electroniclhealthlrecordslwhichlincreaseltheltimelinessloflphysicianlandlpatientlcommunica
tion.
Answer:lFalse.
Response:lWhilelitlislpossiblelthatlalhospitallmightlrealizelhigherlpatientlrevenueslinlt
hellong
termliflitlincreaseslitslqualityloflservicelinlthelarealoflcommunication,litlislunlikelylthat
lan
investmentlinlelectroniclhealthlrecordslwouldlresultlinlalshortltermlreturn.
Further,lthelidealofla
hospitallrealizinglal“profit”lislquestionable.lMostlhospitalslarel“notlforlprofit”linstitut
ions,
whichlbringslintolquestionlthelmaximizinglgoalloflthelhospital.lThislhighlightsltheldiffere
nce
betweenlhospitalslandlthelneoclassicallprofit-
maximizinglfirms.lReference:l1.1lWhatlIslEconomics?/FinancinglHealthlCare.
Level:lMediuml
I.1.L
I.1.M
I.1.N
10) Aslaccessltolhigh-
qualitylcarelhaslbeenlsteadilylimprovinglacrosslthelworld,linequalitieslin
healthlcanlstilllbelfoundlonlylinlrelativelylpoorlcountries.lAnswer:lFal
se.
Reference:l1.4lHealthlDisparitieslL
evel:lEasy
I.1.O MultiplelChoice
11) Inlwhichloflthelfollowinglexamplesldoeslthelfundamentalltheoremloflexchangelnotlapply?
a) Youlpaylyourloptometristl$500lforlalnewlpairlofleyeglasses.
b) Youldonatelyourlold,lusedleyeglassesltolthelLionslClub,lalcharitablelorgan
izationlwhich
recycleslandldistributeslthelglassesltolneedylpeople.
c) Youlpaylalfertilitylspecialistl$10,000ltolperformlInlVitrolFertilizationlproce
durelwhichldoes
notlresultlinlpregnancy.
d) Youlpaylalfertilitylspecialistl$10,000ltolperformlInlVitrolFertilizationlproce
durelwhich
resultslinlpregnancy.
e) Unknownltolyou,lyourlneighborlisltappinglintolyourlcablelTVlservicelandlsharinglyour
service.
Answer:le
Chapterl1
Copyrightl©l2013lJohnlWileyl&lSons,lInc.
TestlBank
File:lc01;lChapterl1lChoices:lMoney,lMedicine,landlHealth
I.1.AlTrue/False
1) Overlthelpastl100lyears,loutloflpocketlexpenditureslforlhealthlcarelserviceslbylindivid
uals
haveldecreasedlfromlaboutl50%ltollesslthanl10%.lAnsw
er:lFalse.
Response:l81%lpersonallexpenditureslinl1929;l11%lpersonallexpenditureslinl2012.lReference:l
1.2lFlowloflFunds/SourcesloflFinancing.
Level:lEasy
2) Thirdlpartylpayerslaccountlforl60%loflalllhealthlcarelexpenditureslinl2012.lAnswer
:lFalse.
Response:l89%loflalllhealthlcarelexpenditureslinl2012larelthroughlthird-partylfinancing.
Reference:l1.2lFlowloflFunds/SourcesloflFinancing.lLev
el:lEasy
3) Rankingleveryonelbylthelamountlspentlonlmedicallcare,l70lpercentlofltheltotall(all
expenditureslforlalllpeople)lislaccountedlforlbyltheltopl10lpercentloflpatients.
Thislphenomenon
islcalledlcostlshifting.lA
nswer:lFalse.
Response:lThelstatisticslarelcorrect;lthelexplanationlislincorrect.lThelsituationldescribe
slonlylthe
factlthatlmedicallexpenseslarelincurredlunevenlylacrosslallloflthelpopulation,landldoeslnot
specifylwholpayslthatl70lpercentlshareloflthelnation’slhealthcarelbill.lTheltermlcostlshi
fting,
however,lincorporateslthelcomparisonloflwholincurredlthelexpenseslversuslwholpaidlthelbi
ll.
Reference:l1.1lWhatlIslEconomics?/FinancinglHealthlCarelANDl1.2lFlowloflFunds/Sourceslof
Financing.lLe
vel:lMediumlI.
1.B
4) NotlonlylislthelshareloflthelGDPlgoingltolhealthlcarelhigherlinl2012lthanlinl1929,lthe
lwages
oflhealthlcarelworkerslhavelrisenlmorelrapidlylthanlforlotherltypeslofllabor.lAnswer:lTru
e.
Chapterl1
Copyrightl©l2013lJohnlWileyl&lSons,lInc.l1
,Getzen’slHealthlEconomicslandlFinancing,lFifthlEdition
TestlBank
Reference:l1.2lFlowloflFunds/lHealthlCarelProviders:lThelUsesloflFunds.lLevel:l
Easy
5) ThelFlowloflFundslidealemphasizeslthatltotalldollarslspentlbylindividuals,lgovern
mentland
otherlthirdlpartylpayerslforlhealthlcarelmustlequalltotallincomelearnedlbylhealthlcarelprovi
ders,
administratorslandlotherlhealthlcarelworkers.lAn
swer:lTrue.
Reference:l1.2lFlowloflFunds.lLe
vel:lEasy
I.1.C
I.1.D
6) Thelhospitallopenslalcancerlcenterlinlanladjacentlabandonedlbuilding.lSincelitlwaslan
abandonedlbuilding,ltherelarelnolopportunitylcostsloflthisldecision.lAnswer:lF
alse.
Response:lThelbuilding,laslwelllaslalllotherlresourceslthatlwerelinvestedlintolthelcancerlce
nter,
couldlhavelbeenlusedlinlanlalternatelway;ltolopenlalwomen’slhealthlcenter,lforlinstance.lThe
foregonelbenefitslfromlopeninglalwomen’slhealthlcenterlwouldlbelthelopportunitylcostloflt
his
decision.
Reference:l1.3lEconomicslPrincipleslaslConceptuallTools/OpportunitylCostlLeve
l:lMedium
I.1.E
7) SocioeconomicldifferenceslinlmortalitylfoundlinlthelU.S.larelmostllikelylattri
butableltollack
ofluniversallhealthlinsurancelcoverage.lAn
swer:lFalse.
Response:lSocioeconomicldifferenceslinlmortalitylarelnoticedlinlotherlOECDlcountrieslasl
well
aslinlpoorerlcountriesllikelGhanalandlBangladesh.lRef
erence:l1.4lHealthlDisparities.
Level:lMediuml
I.1.F
I.1.G
I.1.H
8) Whenlaldruglcompanyladvertiseslitlwilllprovidelalprescriptionldruglatlnolchargeltolcert
ain
individualslwholcannotlaffordlaldoctorlprescribedldrug,lcostslarelmostllikelylbeinglshiftedl
away
fromlindividualslwholarelpayinglhighlpricesltolthoselwholarelpayinglnothing.lAnswer:lFals
e.
Response:lCostslarelbeinglshiftedltolindividualslwholarelpayinglhighlpriceslfromlthoselwhola
re
payinglnothing.
Chapterl1
Copyrightl©l2013lJohnlWileyl&lSons,lInc.l2
, Getzen’slHealthlEconomicslandlFinancing,lFifthlEdition
TestlBank
Reference:l1.1lWhatlIslEconomics?/FinancinglHealthlCare.lLev
el:lEasy
I.1.I
I.1.J
I.1.K
9) Alhospitallsystemlislrewardedlwithlhigherlprofitslinlthelshortltermlwhenlitlimpleme
nts
electroniclhealthlrecordslwhichlincreaseltheltimelinessloflphysicianlandlpatientlcommunica
tion.
Answer:lFalse.
Response:lWhilelitlislpossiblelthatlalhospitallmightlrealizelhigherlpatientlrevenueslinlt
hellong
termliflitlincreaseslitslqualityloflservicelinlthelarealoflcommunication,litlislunlikelylthat
lan
investmentlinlelectroniclhealthlrecordslwouldlresultlinlalshortltermlreturn.
Further,lthelidealofla
hospitallrealizinglal“profit”lislquestionable.lMostlhospitalslarel“notlforlprofit”linstitut
ions,
whichlbringslintolquestionlthelmaximizinglgoalloflthelhospital.lThislhighlightsltheldiffere
nce
betweenlhospitalslandlthelneoclassicallprofit-
maximizinglfirms.lReference:l1.1lWhatlIslEconomics?/FinancinglHealthlCare.
Level:lMediuml
I.1.L
I.1.M
I.1.N
10) Aslaccessltolhigh-
qualitylcarelhaslbeenlsteadilylimprovinglacrosslthelworld,linequalitieslin
healthlcanlstilllbelfoundlonlylinlrelativelylpoorlcountries.lAnswer:lFal
se.
Reference:l1.4lHealthlDisparitieslL
evel:lEasy
I.1.O MultiplelChoice
11) Inlwhichloflthelfollowinglexamplesldoeslthelfundamentalltheoremloflexchangelnotlapply?
a) Youlpaylyourloptometristl$500lforlalnewlpairlofleyeglasses.
b) Youldonatelyourlold,lusedleyeglassesltolthelLionslClub,lalcharitablelorgan
izationlwhich
recycleslandldistributeslthelglassesltolneedylpeople.
c) Youlpaylalfertilitylspecialistl$10,000ltolperformlInlVitrolFertilizationlproce
durelwhichldoes
notlresultlinlpregnancy.
d) Youlpaylalfertilitylspecialistl$10,000ltolperformlInlVitrolFertilizationlproce
durelwhich
resultslinlpregnancy.
e) Unknownltolyou,lyourlneighborlisltappinglintolyourlcablelTVlservicelandlsharinglyour
service.
Answer:le
Chapterl1
Copyrightl©l2013lJohnlWileyl&lSons,lInc.
