LSUS MHA 710 Economics Exam 1 Questions with Verified
Answers |2026/2027 Update | A+ Graded
In the 1960s, individuals paid for the majority of their medical care out of pocket. Increased
insurance coverage, both private & public, displaced out-of-pocket spending as the primary
source of payment. By 2020, what was the forecasted percentage amount of health care
spending paid by individuals? - Answer -10.4 percent
Supply curves are positively sloped because of: - Answer -The increasing opportunity cost of
resources.
All of the following will change the demand for office visits to a physician, except: - Answer -A
change in the price of an office visit.
Self-insurance refers to the practice of setting aside funds to pay for medical care expenses
instead of paying premiums to an insurance company. Approximately, how many of all
employees who participate in group insurance plans work for firms that self-insure? - Answer -
Two-thirds.
Since ACA was passed in 2010, there have been many efforts to have the bill thrown out or at
least watered down. Most attempts have been unsuccessful. However, one key elements of ACA
was successful, which was to: - Answer -Eliminate the tax penalty for the individual mandate.
1|Page
, The optimal level of output may be defined as that level of output where: - Answer -The
marginal benefit of the last unit purchased equals its marginal cost.
An inferior good: - Answer -Causes the demand curve to shift to the left when income rises.
Suppose the demand curve for medical care services is perfectly inelastic. What will happen to
the equilibrium price & quantity if supply increases? - Answer -Price will fall & quantity will stay
the same.
The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones
with sound waves) is: - Answer -Defined by the next best use of the money invested in the
equipment.
Since 1950, U.S. health care spending has grown from an average of 4.5 percent of GDP to an
estimated forecast of _____ percent of GDP in 2020. - Answer -18
Suppose the market for hospital outpatient treatment is in equilibrium when a price ceiling is
set below the equilibrium price. What do you expect to happen? - Answer -A shortage will
develop.
The dead-weight loss from an excise tax: - Answer -Is caused by a shift in consumer preferences
when the tax is raised.
2|Page
Answers |2026/2027 Update | A+ Graded
In the 1960s, individuals paid for the majority of their medical care out of pocket. Increased
insurance coverage, both private & public, displaced out-of-pocket spending as the primary
source of payment. By 2020, what was the forecasted percentage amount of health care
spending paid by individuals? - Answer -10.4 percent
Supply curves are positively sloped because of: - Answer -The increasing opportunity cost of
resources.
All of the following will change the demand for office visits to a physician, except: - Answer -A
change in the price of an office visit.
Self-insurance refers to the practice of setting aside funds to pay for medical care expenses
instead of paying premiums to an insurance company. Approximately, how many of all
employees who participate in group insurance plans work for firms that self-insure? - Answer -
Two-thirds.
Since ACA was passed in 2010, there have been many efforts to have the bill thrown out or at
least watered down. Most attempts have been unsuccessful. However, one key elements of ACA
was successful, which was to: - Answer -Eliminate the tax penalty for the individual mandate.
1|Page
, The optimal level of output may be defined as that level of output where: - Answer -The
marginal benefit of the last unit purchased equals its marginal cost.
An inferior good: - Answer -Causes the demand curve to shift to the left when income rises.
Suppose the demand curve for medical care services is perfectly inelastic. What will happen to
the equilibrium price & quantity if supply increases? - Answer -Price will fall & quantity will stay
the same.
The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones
with sound waves) is: - Answer -Defined by the next best use of the money invested in the
equipment.
Since 1950, U.S. health care spending has grown from an average of 4.5 percent of GDP to an
estimated forecast of _____ percent of GDP in 2020. - Answer -18
Suppose the market for hospital outpatient treatment is in equilibrium when a price ceiling is
set below the equilibrium price. What do you expect to happen? - Answer -A shortage will
develop.
The dead-weight loss from an excise tax: - Answer -Is caused by a shift in consumer preferences
when the tax is raised.
2|Page
