MHA 707 Exam C Questions and Answers
Question 1
Moral Hazard
Correct Answer
When the act of insuring an event increases the likelihood that the event will happen
behaving different when you know someone is taking the risk (induced demand)
Question 2
Adverse Selection
Correct Answer
the situation in which one party to a transaction takes advantage of knowing more than the other party to the
transaction
the sicker people likely want more insurance, compared to those who are healthy
Question 3
Pooling of Risk
Correct Answer
Allows individuals to share risk, i.e., insurance companies
Page 1 of 28
,Question 4
National Health Expenditure Accounts (NHEA)
Correct Answer
Provides official estimates of health care spending in the US. It measures health care consumption and health care
investment.
Question 5
NHEA Benefits
Correct Answer
Comprehensive: includes all major components of health care system in unified, mutually exclusive, and exhaustive
structure
Multidimensional: encompasses expenditures as well as payers
Consistent: applies a common set of definitions that permits longitudinal comparisons
Published by DHHS
Question 6
Accounts in the NHEA
Correct Answer
National Health Expenditures: NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC
Page 2 of 28
, Question 7
National Health Expenditures: NHE
Correct Answer
all health care consumption and investments in medical structures and equipment and noncommercial health services
and biomedical research
NHE - HCE = Amount of investment in the medical sector of economy (buildings, research, equipment)
Question 8
Health Consumption Expenditures: HCE
Correct Answer
a subset of NHE, includes personal health care spending, government administration and net cost of private health
insurance and public health activities
Question 9
Personal Health Care: PHC
Correct Answer
subset of HCE, including all medical goods and service that's used to diagnose, treat, and prevent health problems of a
specific person
Page 3 of 28
Question 1
Moral Hazard
Correct Answer
When the act of insuring an event increases the likelihood that the event will happen
behaving different when you know someone is taking the risk (induced demand)
Question 2
Adverse Selection
Correct Answer
the situation in which one party to a transaction takes advantage of knowing more than the other party to the
transaction
the sicker people likely want more insurance, compared to those who are healthy
Question 3
Pooling of Risk
Correct Answer
Allows individuals to share risk, i.e., insurance companies
Page 1 of 28
,Question 4
National Health Expenditure Accounts (NHEA)
Correct Answer
Provides official estimates of health care spending in the US. It measures health care consumption and health care
investment.
Question 5
NHEA Benefits
Correct Answer
Comprehensive: includes all major components of health care system in unified, mutually exclusive, and exhaustive
structure
Multidimensional: encompasses expenditures as well as payers
Consistent: applies a common set of definitions that permits longitudinal comparisons
Published by DHHS
Question 6
Accounts in the NHEA
Correct Answer
National Health Expenditures: NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC
Page 2 of 28
, Question 7
National Health Expenditures: NHE
Correct Answer
all health care consumption and investments in medical structures and equipment and noncommercial health services
and biomedical research
NHE - HCE = Amount of investment in the medical sector of economy (buildings, research, equipment)
Question 8
Health Consumption Expenditures: HCE
Correct Answer
a subset of NHE, includes personal health care spending, government administration and net cost of private health
insurance and public health activities
Question 9
Personal Health Care: PHC
Correct Answer
subset of HCE, including all medical goods and service that's used to diagnose, treat, and prevent health problems of a
specific person
Page 3 of 28
