MHA 710 TEST 4 2026 EXAM REVIEW
COMPLETE QUESTIONS AND ANSWERS
◉ How has the share of direct payments by consumers changed over
time? Answer: Decreasing due to these caps
◉ Chapter 1 Key Concepts Answer: Economics helps managers focus
on key issues.
Economics helps managers understand goal-oriented decision
making.
Economics helps managers understand strategic decision making.
Economics gives managers a framework for understanding costs.
Economics gives managers a framework for understanding market
demand.
Economics gives managers a framework for assessing profitability.
Economics helps managers understand risk and uncertainty.
,Economics helps managers understand insurance.
Economics helps managers understand information asymmetries.
Economics helps managers deal with rapid change.
◉ Cost Answer: The value of a resource in its next best use.
◉ Marginal or Incremental Cost Answer: The cost of producing an
additional unit of output.
◉ Rational Decision Making Answer: Choosing the course of action
that offers the best outcomes, given the constraints one faces.
◉ Social determinants of health Answer: Factors that affect health
independently of healthcare (e.g., education and housing).
◉ Positive Economics Answer: Using objective analysis and evidence
to answer questions about individuals, organizations, and societies.
◉ Normative Economics Answer: Using values to identify the best
options.
, ◉ MRI Scan Answer: An imaging method that uses magnetic fields to
align hydrogen atoms. A computer processes the resulting signal to
produce images of hard and soft tissues. Unlike X-rays, MRI scans do
not expose patients to ionizing radiation.
◉ CT Scan Answer: An imaging method in which a computer
processes multiple X-rays to produce virtual cross-sectional images.
◉ C- Section Answer: Surgical delivery of a baby.
◉ Chapter 2 Key Concepts Answer: Healthcare products are inputs
into health.
Healthcare products are also outputs of the healthcare sector.
The usefulness of healthcare products varies widely.
Marginal analysis helps managers focus on the right questions.
Life expectancies have increased sharply in the United States in
recent years.
COMPLETE QUESTIONS AND ANSWERS
◉ How has the share of direct payments by consumers changed over
time? Answer: Decreasing due to these caps
◉ Chapter 1 Key Concepts Answer: Economics helps managers focus
on key issues.
Economics helps managers understand goal-oriented decision
making.
Economics helps managers understand strategic decision making.
Economics gives managers a framework for understanding costs.
Economics gives managers a framework for understanding market
demand.
Economics gives managers a framework for assessing profitability.
Economics helps managers understand risk and uncertainty.
,Economics helps managers understand insurance.
Economics helps managers understand information asymmetries.
Economics helps managers deal with rapid change.
◉ Cost Answer: The value of a resource in its next best use.
◉ Marginal or Incremental Cost Answer: The cost of producing an
additional unit of output.
◉ Rational Decision Making Answer: Choosing the course of action
that offers the best outcomes, given the constraints one faces.
◉ Social determinants of health Answer: Factors that affect health
independently of healthcare (e.g., education and housing).
◉ Positive Economics Answer: Using objective analysis and evidence
to answer questions about individuals, organizations, and societies.
◉ Normative Economics Answer: Using values to identify the best
options.
, ◉ MRI Scan Answer: An imaging method that uses magnetic fields to
align hydrogen atoms. A computer processes the resulting signal to
produce images of hard and soft tissues. Unlike X-rays, MRI scans do
not expose patients to ionizing radiation.
◉ CT Scan Answer: An imaging method in which a computer
processes multiple X-rays to produce virtual cross-sectional images.
◉ C- Section Answer: Surgical delivery of a baby.
◉ Chapter 2 Key Concepts Answer: Healthcare products are inputs
into health.
Healthcare products are also outputs of the healthcare sector.
The usefulness of healthcare products varies widely.
Marginal analysis helps managers focus on the right questions.
Life expectancies have increased sharply in the United States in
recent years.
