LSUS MHA 710 Economics Exam 1
2025/2026 Exam Questions and Verified
Answers | Already Graded A+
Which of the following represents the largest category of health care
spending in the United States? - 🧠ANSWER ✔✔Hospital Care
The direct effect of a shortage of hospital beds in a hospital services
market is: - 🧠ANSWER ✔✔Upward pressure on the price of a hospital stay.
All of the following will cause a shift in the medical care supply curve,
except: - 🧠ANSWER ✔✔A change in the percentage of the population with
health insurance.
Assuming providers will accommodate patient desires, what effect would a
binding price ceiling have on the health care market? - 🧠ANSWER ✔✔Price
will decrease to adhere to the price ceiling & quantity will increase.
Suppose the U.S. Food & Drug Administration restricts the amount of
prescription opiates produced & sold in the U.S. market. What is the likely
effect on the market for drugs used to control chronic pain the United
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, States? - 🧠ANSWER ✔✔The price of prescription opiates will increase &
the quantity consumed will decrease.
The following graph depicts the market for CT scanners in the United
States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per
machine. If the government places a $100,000 excise tax on each new
scanner sold, the new equilibrium price will be: - 🧠ANSWER ✔✔less than
$1.30 million.
Suppose robotic technology improves the results of abdominal surgery—
less time to perform the surgery, faster recovery times, and fewer mistakes.
What is the impact on the market for abdominal surgery using this new
technology? - 🧠ANSWER ✔✔Demand for robot-assisted surgery will
increase, & prices will rise.
If a hospital is experiencing economies of scale: - 🧠ANSWER ✔✔Its
average cost curve is negatively sloped as output increases.
Which of the following does NOT contribute to wasteful spending in medical
care? - 🧠ANSWER ✔✔Price transparency.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
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2025/2026 Exam Questions and Verified
Answers | Already Graded A+
Which of the following represents the largest category of health care
spending in the United States? - 🧠ANSWER ✔✔Hospital Care
The direct effect of a shortage of hospital beds in a hospital services
market is: - 🧠ANSWER ✔✔Upward pressure on the price of a hospital stay.
All of the following will cause a shift in the medical care supply curve,
except: - 🧠ANSWER ✔✔A change in the percentage of the population with
health insurance.
Assuming providers will accommodate patient desires, what effect would a
binding price ceiling have on the health care market? - 🧠ANSWER ✔✔Price
will decrease to adhere to the price ceiling & quantity will increase.
Suppose the U.S. Food & Drug Administration restricts the amount of
prescription opiates produced & sold in the U.S. market. What is the likely
effect on the market for drugs used to control chronic pain the United
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
1
, States? - 🧠ANSWER ✔✔The price of prescription opiates will increase &
the quantity consumed will decrease.
The following graph depicts the market for CT scanners in the United
States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per
machine. If the government places a $100,000 excise tax on each new
scanner sold, the new equilibrium price will be: - 🧠ANSWER ✔✔less than
$1.30 million.
Suppose robotic technology improves the results of abdominal surgery—
less time to perform the surgery, faster recovery times, and fewer mistakes.
What is the impact on the market for abdominal surgery using this new
technology? - 🧠ANSWER ✔✔Demand for robot-assisted surgery will
increase, & prices will rise.
If a hospital is experiencing economies of scale: - 🧠ANSWER ✔✔Its
average cost curve is negatively sloped as output increases.
Which of the following does NOT contribute to wasteful spending in medical
care? - 🧠ANSWER ✔✔Price transparency.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2
