PH 122 Midterm Exam Questions And Complete
Answers 100% Pass
Do you agree with the following statement: "The RAND HIS and other empirical studies
suggest that we are practicing flat of the curve medicine, and therefore, there is no value to
medical care." Discuss. - ANSWER The first part of the statement is correct. There is a large
body of evidence that suggests that the marginal productivity of medical care, in the
aggregate, in the U.S. is zero. However, the value of medical care is determined by the
average productivity, not the marginal. The average productivity is high, indicating that
medical care is valuable. The zero marginal productivity suggests that further expansion of
medical care may not be warranted. One should also note that this evidence is conditional on
current technology. Future technological advances can again increase the marginal
productivity of health care.
Physicians are asked to take the Hippocratic oath in which they promise to do no harm to
their patient (choose one)
a) because they are expected to be knowledgeable about the classics.
b. because the asymmetry of information between patients and physicians makes it difficult
for physicians to understand their patients.
c. because the asymmetry of information between patients and physicians makes it difficult
for patients to monitor the quality of care physicians provide. - ANSWER c. because the
asymmetry of information between patients and physicians makes it difficult for patients to
monitor the quality of care physicians provide.
2) Cost/life-year data cannot be used (choose one) - ANSWER in determining the value of life.
, The productivity of medical care (choose one)
a)is the same for all diseases.
b) is the only factor that determines health.
c) exhibits diminishing marginal returns. - ANSWER c) exhibits diminishing marginal returns.
The RAND Health Insurance Study found that ambulatory care and hospital care are
complements. This implies that (choose one)
a. when the use of ambulatory care increases the use of hospital care decreases.
b. when the use of ambulatory care increases the use of hospital care also increases.
c. the use of ambulatory and hospital care are not related. - ANSWER b. when the use of
ambulatory care increases the use of hospital care also increases.
Describe 3 important characteristics of health care and explain how they influence the health
care system. - ANSWER 1. Uncertainty: It creates demand for insurance which in turn lowers
the effective price to consumers and increases demand. It also affects physicians' decisions
regarding tests, diagnoses and treatments. It makes it very difficult for patients to evaluate
the quality of care they receive because quality cannot be inferred directly from outcomes.
2. Asymmetric knowledge: 1) Between patients and insurers - patients have more information
about their health risks and may therefore misrepresent themselves to insurers. 2) Between
patients and physicians - because physicians are more knowledgeable then patients they are
in a position to influence patient' s decisions on treatments. Unless they behave as true agents
of the patients, treatment decisions may be suboptimal. Furthermore, this asymmetry makes
it difficult for patients to evaluate the quality of care they receive from physicians.
Answers 100% Pass
Do you agree with the following statement: "The RAND HIS and other empirical studies
suggest that we are practicing flat of the curve medicine, and therefore, there is no value to
medical care." Discuss. - ANSWER The first part of the statement is correct. There is a large
body of evidence that suggests that the marginal productivity of medical care, in the
aggregate, in the U.S. is zero. However, the value of medical care is determined by the
average productivity, not the marginal. The average productivity is high, indicating that
medical care is valuable. The zero marginal productivity suggests that further expansion of
medical care may not be warranted. One should also note that this evidence is conditional on
current technology. Future technological advances can again increase the marginal
productivity of health care.
Physicians are asked to take the Hippocratic oath in which they promise to do no harm to
their patient (choose one)
a) because they are expected to be knowledgeable about the classics.
b. because the asymmetry of information between patients and physicians makes it difficult
for physicians to understand their patients.
c. because the asymmetry of information between patients and physicians makes it difficult
for patients to monitor the quality of care physicians provide. - ANSWER c. because the
asymmetry of information between patients and physicians makes it difficult for patients to
monitor the quality of care physicians provide.
2) Cost/life-year data cannot be used (choose one) - ANSWER in determining the value of life.
, The productivity of medical care (choose one)
a)is the same for all diseases.
b) is the only factor that determines health.
c) exhibits diminishing marginal returns. - ANSWER c) exhibits diminishing marginal returns.
The RAND Health Insurance Study found that ambulatory care and hospital care are
complements. This implies that (choose one)
a. when the use of ambulatory care increases the use of hospital care decreases.
b. when the use of ambulatory care increases the use of hospital care also increases.
c. the use of ambulatory and hospital care are not related. - ANSWER b. when the use of
ambulatory care increases the use of hospital care also increases.
Describe 3 important characteristics of health care and explain how they influence the health
care system. - ANSWER 1. Uncertainty: It creates demand for insurance which in turn lowers
the effective price to consumers and increases demand. It also affects physicians' decisions
regarding tests, diagnoses and treatments. It makes it very difficult for patients to evaluate
the quality of care they receive because quality cannot be inferred directly from outcomes.
2. Asymmetric knowledge: 1) Between patients and insurers - patients have more information
about their health risks and may therefore misrepresent themselves to insurers. 2) Between
patients and physicians - because physicians are more knowledgeable then patients they are
in a position to influence patient' s decisions on treatments. Unless they behave as true agents
of the patients, treatment decisions may be suboptimal. Furthermore, this asymmetry makes
it difficult for patients to evaluate the quality of care they receive from physicians.
