LSUS MHA 710 ECONOMICS EXAM 1 2026
EXAM SCRIPT WITH DETAILED EXPLANATIONS
◉ The standard cut-off for cost per quality-adjusted life year (QALY)
used by most governmental decision makers is set in terms of
multiple of national per capita income. The value of the threshold is
usually what percent of national per capita income? Answer: 100
◉ Suppose your assignment is to use the standard time trade-off
approach to measure quality of life . You are given the following
information: An individual is faced with living the remaining 10
years of their life suffering from severe osteoporosis. The individual
reveals that they would be willing to give up four of those years to
live the remaining six in perfect health. What is the utility of one
year in a chronic health state relative to perfect health? Answer: 0.6
◉ According to Grossman (1972), how is the demand for medical
care determined? Answer: It is derived from the demand for health.
◉ The concept of quality-adjusted life year (QALY): Answer: is used
extensively to evaluate medical care resource allocation within
government-run programs on fixed budgets, especially in Europe.
◉ Which is of the following measures of effectiveness is an
intermediate measure? Answer: Hip Fracture
, ◉ When measuring the effectiveness of a treatment, surrogate
measures reflect clinical efficacy and include: Answer: bone-mass
density (BMD)
◉ Which of the following is least responsible for the reduction in
mortality rates in Europe and North America? Answer: More
effective medical interventions.
◉ A physician's ability to induce demand is greatly enhanced when:
Answer: patients have difficulty gathering and processing
information.
◉ Which of the following would likely lead to the greatest
improvement in the health status of the population in the United
States? Answer: Improved lifestyles changes
◉ The direct costs in an economic evaluation include all of the
following except: Answer: reduced productivity at work.
◉ There are substantial difference in medial care use by
demographic characteristics such as age, sex, and marital status.
Which of the following statements is true? Answer: Adult women
spend more money on medical care than men do.
EXAM SCRIPT WITH DETAILED EXPLANATIONS
◉ The standard cut-off for cost per quality-adjusted life year (QALY)
used by most governmental decision makers is set in terms of
multiple of national per capita income. The value of the threshold is
usually what percent of national per capita income? Answer: 100
◉ Suppose your assignment is to use the standard time trade-off
approach to measure quality of life . You are given the following
information: An individual is faced with living the remaining 10
years of their life suffering from severe osteoporosis. The individual
reveals that they would be willing to give up four of those years to
live the remaining six in perfect health. What is the utility of one
year in a chronic health state relative to perfect health? Answer: 0.6
◉ According to Grossman (1972), how is the demand for medical
care determined? Answer: It is derived from the demand for health.
◉ The concept of quality-adjusted life year (QALY): Answer: is used
extensively to evaluate medical care resource allocation within
government-run programs on fixed budgets, especially in Europe.
◉ Which is of the following measures of effectiveness is an
intermediate measure? Answer: Hip Fracture
, ◉ When measuring the effectiveness of a treatment, surrogate
measures reflect clinical efficacy and include: Answer: bone-mass
density (BMD)
◉ Which of the following is least responsible for the reduction in
mortality rates in Europe and North America? Answer: More
effective medical interventions.
◉ A physician's ability to induce demand is greatly enhanced when:
Answer: patients have difficulty gathering and processing
information.
◉ Which of the following would likely lead to the greatest
improvement in the health status of the population in the United
States? Answer: Improved lifestyles changes
◉ The direct costs in an economic evaluation include all of the
following except: Answer: reduced productivity at work.
◉ There are substantial difference in medial care use by
demographic characteristics such as age, sex, and marital status.
Which of the following statements is true? Answer: Adult women
spend more money on medical care than men do.
