6531 FINAL EXAM 1 LATEST 2025 WITH CORRECT QUESTIONS AND DETAILED
ANSWERS/ALREADY GRADED A+
Health vs. Health care - (answer)Well being - physical and mental not just being disease free; the other is
the system that helps ensure this
Scarcity - (answer)Dividing resources by using prices; supply and demand; infinite number of needs and
limited resources; in HP goods are more regulated than market driven
The leading insurance companies in the US in the 1920s were against compulsory health insurance
because of the inclusion of a funeral benefit - (answer)True
The American Federation of Labor, lead by Samuel Gompers, championed Compulsory health insurance
coverage for all workers - (answer)False
The American Medical Association responded to the Great Depression by restricting the supply of
doctors rather than stimulating demand for physicians' services. - (answer)True
Increased state and federal funding for medical services of the poor started with the passage of
Medicaid in 1965. - (answer)False
Post WW II, veterans were able to win support not only for treatment of their service-related injuries
but for all of their medical care needs, largely because of AMA support. - (answer)False
Blue cross started off as an insurance program that covered hospital costs only - (answer)true
The AMA is legally allowed to collectively bargain with managed care organizations on behalf of its
members over doctor fees. - (answer)False
High deductible plans promote adverse selection. - (answer)true
, 6531 FINAL EXAM 1 LATEST 2025 WITH CORRECT QUESTIONS AND DETAILED
ANSWERS/ALREADY GRADED A+
Medicare's prospective payment system has increased hospitalization rates. - (answer)False
In America, physicians have always enjoyed an esteemed position in society. - (answer)False
The goal of insurance is to give an individual financial risk protection - (answer)True
market equilibrium occurs when supply is greater than the demand - (answer)false
all individuals consider societal welfare when maximizing their own utility - (answer)false
Moral hazard occurs when individuals do not consider opportunity costs - (answer)false
cost sharing in health insurance is a form of supply side tool to control moral hazard - (answer)false
Asymmetry of information can lead to market inefficiencies - (answer)True
In the principal-agent relationship, the principal can easily monitor the agent's behavior - (answer)False
Adverse selection occurs when insurance plans select low-risk and low-cost enrollees - (answer)True
The Opioid Epidemic has negative externalities on society - (answer)True
Collective-action problems get better as the group gets larger - (answer)False
ANSWERS/ALREADY GRADED A+
Health vs. Health care - (answer)Well being - physical and mental not just being disease free; the other is
the system that helps ensure this
Scarcity - (answer)Dividing resources by using prices; supply and demand; infinite number of needs and
limited resources; in HP goods are more regulated than market driven
The leading insurance companies in the US in the 1920s were against compulsory health insurance
because of the inclusion of a funeral benefit - (answer)True
The American Federation of Labor, lead by Samuel Gompers, championed Compulsory health insurance
coverage for all workers - (answer)False
The American Medical Association responded to the Great Depression by restricting the supply of
doctors rather than stimulating demand for physicians' services. - (answer)True
Increased state and federal funding for medical services of the poor started with the passage of
Medicaid in 1965. - (answer)False
Post WW II, veterans were able to win support not only for treatment of their service-related injuries
but for all of their medical care needs, largely because of AMA support. - (answer)False
Blue cross started off as an insurance program that covered hospital costs only - (answer)true
The AMA is legally allowed to collectively bargain with managed care organizations on behalf of its
members over doctor fees. - (answer)False
High deductible plans promote adverse selection. - (answer)true
, 6531 FINAL EXAM 1 LATEST 2025 WITH CORRECT QUESTIONS AND DETAILED
ANSWERS/ALREADY GRADED A+
Medicare's prospective payment system has increased hospitalization rates. - (answer)False
In America, physicians have always enjoyed an esteemed position in society. - (answer)False
The goal of insurance is to give an individual financial risk protection - (answer)True
market equilibrium occurs when supply is greater than the demand - (answer)false
all individuals consider societal welfare when maximizing their own utility - (answer)false
Moral hazard occurs when individuals do not consider opportunity costs - (answer)false
cost sharing in health insurance is a form of supply side tool to control moral hazard - (answer)false
Asymmetry of information can lead to market inefficiencies - (answer)True
In the principal-agent relationship, the principal can easily monitor the agent's behavior - (answer)False
Adverse selection occurs when insurance plans select low-risk and low-cost enrollees - (answer)True
The Opioid Epidemic has negative externalities on society - (answer)True
Collective-action problems get better as the group gets larger - (answer)False
