LSUS MHA 710 ECONOMICS EXAM 1
COMPREHENSIVE PAPER 2026 QUESTIONS
AND CORRECT ANSWERS GRADED A+
●● The direct effect of a shortage of hospital beds in a hospital services
market is:
Answer: Upward pressure on the price of a hospital stay.
●● All of the following will cause a shift in the medical care supply
curve, except:
Answer: A change in the percentage of the population with health
insurance.
●● Assuming providers will accommodate patient desires, what effect
would a binding price ceiling have on the health care market?
Answer: Price will decrease to adhere to the price ceiling & quantity will
increase.
●● Suppose the U.S. Food & Drug Administration restricts the amount
of prescription opiates produced & sold in the U.S. market. What is the
likely effect on the market for drugs used to control chronic pain the
United States?
Answer: The price of prescription opiates will increase & the quantity
consumed will decrease.
, ●● The following graph depicts the market for CT scanners in the
United States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20 million
per machine. If the government places a $100,000 excise tax on each
new scanner sold, the new equilibrium price will be:
Answer: less than $1.30 million.
●● Suppose robotic technology improves the results of abdominal
surgery—less time to perform the surgery, faster recovery times, and
fewer mistakes. What is the impact on the market for abdominal surgery
using this new technology?
Answer: Demand for robot-assisted surgery will increase, & prices will
rise.
●● If a hospital is experiencing economies of scale:
Answer: Its average cost curve is negatively sloped as output increases.
●● Which of the following does NOT contribute to wasteful spending in
medical care?
Answer: Price transparency.
●● Which of the following statements is based on positive analysis?
COMPREHENSIVE PAPER 2026 QUESTIONS
AND CORRECT ANSWERS GRADED A+
●● The direct effect of a shortage of hospital beds in a hospital services
market is:
Answer: Upward pressure on the price of a hospital stay.
●● All of the following will cause a shift in the medical care supply
curve, except:
Answer: A change in the percentage of the population with health
insurance.
●● Assuming providers will accommodate patient desires, what effect
would a binding price ceiling have on the health care market?
Answer: Price will decrease to adhere to the price ceiling & quantity will
increase.
●● Suppose the U.S. Food & Drug Administration restricts the amount
of prescription opiates produced & sold in the U.S. market. What is the
likely effect on the market for drugs used to control chronic pain the
United States?
Answer: The price of prescription opiates will increase & the quantity
consumed will decrease.
, ●● The following graph depicts the market for CT scanners in the
United States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20 million
per machine. If the government places a $100,000 excise tax on each
new scanner sold, the new equilibrium price will be:
Answer: less than $1.30 million.
●● Suppose robotic technology improves the results of abdominal
surgery—less time to perform the surgery, faster recovery times, and
fewer mistakes. What is the impact on the market for abdominal surgery
using this new technology?
Answer: Demand for robot-assisted surgery will increase, & prices will
rise.
●● If a hospital is experiencing economies of scale:
Answer: Its average cost curve is negatively sloped as output increases.
●● Which of the following does NOT contribute to wasteful spending in
medical care?
Answer: Price transparency.
●● Which of the following statements is based on positive analysis?
