HSA 408 KEY FINAL EXAM QUESTIONS AND
CORRECT ANSWERS
Scarcity - CORRECT ANSWERS Limited resources require decisions about production,
distribution, and consumption
Demand - CORRECT ANSWERS Quantity of goods and services a consumer is willing and
able to purchase
Price Elasticity of Demand - CORRECT ANSWERS Percentage change in quantity demanded
resulting from 1% change in price
Inelastic Demand - CORRECT ANSWERS Demand for the good is not sensitive to a change
in price
Health Insurance and Demand - CORRECT ANSWERS Insurance reduces cost to consumer,
may lead to increased consumption
Supply - CORRECT ANSWERS Amount of goods and services producers are willing to sell at
a given price
Supply Elasticity - CORRECT ANSWERS Percentage change in quantity supplied resulting
from 1% increase in price or other variables
Inelastic Supply - CORRECT ANSWERS Supply of the good is not sensitive to a change in
price or other variables
,Supplier-Induced Demand - CORRECT ANSWERS Providers create demand beyond what
informed consumers would choose
Market Structures - CORRECT ANSWERS Perfect competition, monopoly, oligopoly,
monopsony
Monopolistically Competitive Market - CORRECT ANSWERS Few dominant firms with
market power and many smaller firms without power
Reasons for Market Failure - CORRECT ANSWERS Imperfect information, concentration of
market power, consumption of public goods, presence of externalities
Health Reform - CORRECT ANSWERS Attempts to create universal or near-universal
coverage
Key Failed Attempts at National Health Reform - CORRECT ANSWERS Progressive party
platform, American Association for Labor Legislation, President Truman, President Nixon,
President Clinton
Individual Mandate - CORRECT ANSWERS Requirement to purchase health insurance or
pay a penalty
ACA: Premium and Cost Sharing Subsidies - CORRECT ANSWERS Financial assistance for
individuals with income up to 400% of poverty level
ACA: Employer Mandate - CORRECT ANSWERS Requirement for employers with 50 or
more employees to provide affordable health insurance
, Block Grants - CORRECT ANSWERS Defined sum of money allocated for a program,
beneficiaries may be refused service
Medicaid Administration - CORRECT ANSWERS CMS outlines mandatory and optional
populations and benefits, state Medicaid agencies run programs
Medicaid Financing - CORRECT ANSWERS Jointly financed by federal and state
governments, matching system based on per capita income
CHIP - CORRECT ANSWERS Block grant program providing health insurance to low-income
children
Medicare Financing - CORRECT ANSWERS Payroll tax, federal tax revenues, beneficiary
premiums and cost-sharing
Medicare Provider Reimbursement - CORRECT ANSWERS Fee-for-service or managed
care, rates set by Medicare or negotiated with providers
What are private professional and industry ethical and practice standards? - CORRECT
ANSWERS Standards that exist but their effect on day-to-day quality is debatable.
What role does licensure play in defining the scope of practice? - CORRECT ANSWERS It
defines the permissible activities for different types of healthcare providers.
Why is it important for state legislators to define the scope of practice for different healthcare
providers? - CORRECT ANSWERS To differentiate the lawful activities of doctors, physician
assistants, and nurses.
CORRECT ANSWERS
Scarcity - CORRECT ANSWERS Limited resources require decisions about production,
distribution, and consumption
Demand - CORRECT ANSWERS Quantity of goods and services a consumer is willing and
able to purchase
Price Elasticity of Demand - CORRECT ANSWERS Percentage change in quantity demanded
resulting from 1% change in price
Inelastic Demand - CORRECT ANSWERS Demand for the good is not sensitive to a change
in price
Health Insurance and Demand - CORRECT ANSWERS Insurance reduces cost to consumer,
may lead to increased consumption
Supply - CORRECT ANSWERS Amount of goods and services producers are willing to sell at
a given price
Supply Elasticity - CORRECT ANSWERS Percentage change in quantity supplied resulting
from 1% increase in price or other variables
Inelastic Supply - CORRECT ANSWERS Supply of the good is not sensitive to a change in
price or other variables
,Supplier-Induced Demand - CORRECT ANSWERS Providers create demand beyond what
informed consumers would choose
Market Structures - CORRECT ANSWERS Perfect competition, monopoly, oligopoly,
monopsony
Monopolistically Competitive Market - CORRECT ANSWERS Few dominant firms with
market power and many smaller firms without power
Reasons for Market Failure - CORRECT ANSWERS Imperfect information, concentration of
market power, consumption of public goods, presence of externalities
Health Reform - CORRECT ANSWERS Attempts to create universal or near-universal
coverage
Key Failed Attempts at National Health Reform - CORRECT ANSWERS Progressive party
platform, American Association for Labor Legislation, President Truman, President Nixon,
President Clinton
Individual Mandate - CORRECT ANSWERS Requirement to purchase health insurance or
pay a penalty
ACA: Premium and Cost Sharing Subsidies - CORRECT ANSWERS Financial assistance for
individuals with income up to 400% of poverty level
ACA: Employer Mandate - CORRECT ANSWERS Requirement for employers with 50 or
more employees to provide affordable health insurance
, Block Grants - CORRECT ANSWERS Defined sum of money allocated for a program,
beneficiaries may be refused service
Medicaid Administration - CORRECT ANSWERS CMS outlines mandatory and optional
populations and benefits, state Medicaid agencies run programs
Medicaid Financing - CORRECT ANSWERS Jointly financed by federal and state
governments, matching system based on per capita income
CHIP - CORRECT ANSWERS Block grant program providing health insurance to low-income
children
Medicare Financing - CORRECT ANSWERS Payroll tax, federal tax revenues, beneficiary
premiums and cost-sharing
Medicare Provider Reimbursement - CORRECT ANSWERS Fee-for-service or managed
care, rates set by Medicare or negotiated with providers
What are private professional and industry ethical and practice standards? - CORRECT
ANSWERS Standards that exist but their effect on day-to-day quality is debatable.
What role does licensure play in defining the scope of practice? - CORRECT ANSWERS It
defines the permissible activities for different types of healthcare providers.
Why is it important for state legislators to define the scope of practice for different healthcare
providers? - CORRECT ANSWERS To differentiate the lawful activities of doctors, physician
assistants, and nurses.
