LSUS MHA 710 ECONOMICS EXAM 1 2026
FINAL TEST QUESTIONS AND CORRECT
ANSWERS
◉ The tax fully dedicated to provide support for Medicare Part A is:
Answer: A 2.9 percent payroll tax paid by all workers, regardless of
their age.
◉ Several reform options have been discussed by Congress to solve
some of the structural problems that plague the program. Which of
the following options has received little support? Answer: Limit the
coverage for end-of-life care, the most expensive single item in
Medicare, to include only essential palliative care.
◉ Part B pays what percentage of the allowable fee set by Medicare?
Answer: 80 percent.
◉ Which of the following statements is true concerning the trend in
community hospital care between inpatient & outpatient services
since the mid-1980s? Answer: Outpatient services have been
growing, while inpatient services have been declining.
, ◉ On average, biopharmaceutical companies spend approximately
what percentage of their sales revenue on research & development?
Answer: 5-10 percent.
◉ In 2019, Medicare covered approximately how many Americans?
Answer: 60 milllion.
◉ What was the main effect of the agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS) on United States'
domestic policy? Answer: It extended the life of patents from 17
years from the date of grant to 20 years from the date of application.
◉ Suppose the market for nursing services in a local community is
so dominated by a single community hospital that, for all practical
purposes, it is considered a monopsony. Using the diagram below,
answer the question.
If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage & level of
employment be? Answer: W1 & E1.
◉ In order to be a successful price discriminator, a provider must
have a degree of market power (depicted by a downward-sloping
demand curve) & meet what other condition(s)? Answer: Markets
must be segmentable, identifying differences in ability to pay.
FINAL TEST QUESTIONS AND CORRECT
ANSWERS
◉ The tax fully dedicated to provide support for Medicare Part A is:
Answer: A 2.9 percent payroll tax paid by all workers, regardless of
their age.
◉ Several reform options have been discussed by Congress to solve
some of the structural problems that plague the program. Which of
the following options has received little support? Answer: Limit the
coverage for end-of-life care, the most expensive single item in
Medicare, to include only essential palliative care.
◉ Part B pays what percentage of the allowable fee set by Medicare?
Answer: 80 percent.
◉ Which of the following statements is true concerning the trend in
community hospital care between inpatient & outpatient services
since the mid-1980s? Answer: Outpatient services have been
growing, while inpatient services have been declining.
, ◉ On average, biopharmaceutical companies spend approximately
what percentage of their sales revenue on research & development?
Answer: 5-10 percent.
◉ In 2019, Medicare covered approximately how many Americans?
Answer: 60 milllion.
◉ What was the main effect of the agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS) on United States'
domestic policy? Answer: It extended the life of patents from 17
years from the date of grant to 20 years from the date of application.
◉ Suppose the market for nursing services in a local community is
so dominated by a single community hospital that, for all practical
purposes, it is considered a monopsony. Using the diagram below,
answer the question.
If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage & level of
employment be? Answer: W1 & E1.
◉ In order to be a successful price discriminator, a provider must
have a degree of market power (depicted by a downward-sloping
demand curve) & meet what other condition(s)? Answer: Markets
must be segmentable, identifying differences in ability to pay.
