,MHA 710 - Healthcare Economics - Exam 1
Complete Practice Questions 1-200
QUESTIONS 1-20: INTRODUCTION TO HEALTHCARE
ECONOMICS
1. Healthcare economics is primarily the study of:
• A. How to reduce hospital costs
• B. How scarce healthcare resources are allocated to meet unlimited wants
• C. How to increase healthcare profits
• D. The history of healthcare systems
Correct Answer: B. Economics studies how scarce resources are allocated to meet
unlimited wants and needs.
2. Which of the following is a fundamental economic problem in healthcare?
• A. Unlimited resources
• B. Unlimited wants with limited resources
• C. Equal distribution of resources
• D. No scarcity of healthcare services
Correct Answer: B. Scarcity exists because wants are unlimited but resources are
limited.
,3. The concept of opportunity cost in healthcare refers to:
• A. The cost of medical supplies
• B. The value of the next best alternative foregone when a choice is made
• C. The total cost of hospitalization
• D. The cost of insurance premiums
Correct Answer: B. Opportunity cost is the value of the next best alternative given up.
4. In economics, "scarcity" means:
• A. Resources are unlimited
• B. Resources are limited relative to wants
• C. Healthcare is free
• D. Everyone has access to care
Correct Answer: B. Scarcity exists when resources are limited relative to wants.
5. Which of the following is NOT a factor of production in healthcare?
• A. Land
• B. Labor
• C. Capital
• D. Insurance
, Correct Answer: D. Insurance is not a factor of production; factors include land, labor,
capital, and entrepreneurship.
6. Microeconomics in healthcare focuses on:
• A. National healthcare spending
• B. Individual healthcare markets, providers, and consumers
• C. Global health policy
• D. Medicare and Medicaid programs
Correct Answer: B. Microeconomics studies individual markets, providers, and
consumer behavior.
7. Macroeconomics in healthcare focuses on:
• A. Individual physician practices
• B. Hospital management
• C. National healthcare spending and policy
• D. Patient satisfaction
Correct Answer: C. Macroeconomics studies national and global economic aggregates.
8. The production possibility frontier (PPF) illustrates:
• A. The maximum combination of goods/services that can be produced with
available resources
Complete Practice Questions 1-200
QUESTIONS 1-20: INTRODUCTION TO HEALTHCARE
ECONOMICS
1. Healthcare economics is primarily the study of:
• A. How to reduce hospital costs
• B. How scarce healthcare resources are allocated to meet unlimited wants
• C. How to increase healthcare profits
• D. The history of healthcare systems
Correct Answer: B. Economics studies how scarce resources are allocated to meet
unlimited wants and needs.
2. Which of the following is a fundamental economic problem in healthcare?
• A. Unlimited resources
• B. Unlimited wants with limited resources
• C. Equal distribution of resources
• D. No scarcity of healthcare services
Correct Answer: B. Scarcity exists because wants are unlimited but resources are
limited.
,3. The concept of opportunity cost in healthcare refers to:
• A. The cost of medical supplies
• B. The value of the next best alternative foregone when a choice is made
• C. The total cost of hospitalization
• D. The cost of insurance premiums
Correct Answer: B. Opportunity cost is the value of the next best alternative given up.
4. In economics, "scarcity" means:
• A. Resources are unlimited
• B. Resources are limited relative to wants
• C. Healthcare is free
• D. Everyone has access to care
Correct Answer: B. Scarcity exists when resources are limited relative to wants.
5. Which of the following is NOT a factor of production in healthcare?
• A. Land
• B. Labor
• C. Capital
• D. Insurance
, Correct Answer: D. Insurance is not a factor of production; factors include land, labor,
capital, and entrepreneurship.
6. Microeconomics in healthcare focuses on:
• A. National healthcare spending
• B. Individual healthcare markets, providers, and consumers
• C. Global health policy
• D. Medicare and Medicaid programs
Correct Answer: B. Microeconomics studies individual markets, providers, and
consumer behavior.
7. Macroeconomics in healthcare focuses on:
• A. Individual physician practices
• B. Hospital management
• C. National healthcare spending and policy
• D. Patient satisfaction
Correct Answer: C. Macroeconomics studies national and global economic aggregates.
8. The production possibility frontier (PPF) illustrates:
• A. The maximum combination of goods/services that can be produced with
available resources
