LSUS MHA 710 Economics Exam 1
Practice Questions and Answers
A health insurance arrangement where individuals have access to health care in
exchange for a set premium is called:
Third-party payment system.
According to Adam Smith's terminology, the "invisible hand" refers to:
Market forces working through the price mechanism.
All of the following will cause a shift in the medical care supply curve, except: -
A change in the percentage of the population with health insurance.
All of the following will change the demand for office visits to a physician, except:
A change in the price of an office visit.
An inferior good:
Causes the demand curve to shift to the left when income rises.
Assuming providers will accommodate patient desires, what effect would a binding price
ceiling have on the health care market?
Price will decrease to adhere to the price ceiling & quantity will increase.
Assuming that a market is perfectly competitive & in a state of equilibrium, which of the
following statements is always true when the price changes?
Social welfare decreases.
Assuming that providers will only accommodate patient desires up to a point, what
effect would a binding price ceiling have on the health care market?
Quantity of health care supplied would fall.
Even in the U.S., approximately, what percent of medical care is purchased through
insurance, government programs or other third party insurers?
90
How different is medical care from other commodities? Arrow (1963) based his thesis
on a number of characteristics that contribute to the unique nature of medical care. All
of the following characteristics were listed by Arrow, except:
Preponderance of not-for-profit providers.
If a hospital is experiencing economies of scale:
Its average cost curve is negatively sloped as output increases.
Practice Questions and Answers
A health insurance arrangement where individuals have access to health care in
exchange for a set premium is called:
Third-party payment system.
According to Adam Smith's terminology, the "invisible hand" refers to:
Market forces working through the price mechanism.
All of the following will cause a shift in the medical care supply curve, except: -
A change in the percentage of the population with health insurance.
All of the following will change the demand for office visits to a physician, except:
A change in the price of an office visit.
An inferior good:
Causes the demand curve to shift to the left when income rises.
Assuming providers will accommodate patient desires, what effect would a binding price
ceiling have on the health care market?
Price will decrease to adhere to the price ceiling & quantity will increase.
Assuming that a market is perfectly competitive & in a state of equilibrium, which of the
following statements is always true when the price changes?
Social welfare decreases.
Assuming that providers will only accommodate patient desires up to a point, what
effect would a binding price ceiling have on the health care market?
Quantity of health care supplied would fall.
Even in the U.S., approximately, what percent of medical care is purchased through
insurance, government programs or other third party insurers?
90
How different is medical care from other commodities? Arrow (1963) based his thesis
on a number of characteristics that contribute to the unique nature of medical care. All
of the following characteristics were listed by Arrow, except:
Preponderance of not-for-profit providers.
If a hospital is experiencing economies of scale:
Its average cost curve is negatively sloped as output increases.
