MHA 710 EXAM 1 HEALTHCARE ECONOMICS
MOCK EXAM AND STUDY MATERIAL WITH KEY
DEFINITIONS AND APPLICATIONS
◉ This study was the catalyst for the early twentieth century reform
of medical education in the United States. What was it?
Answer: Flexner Report
◉ Starting salaries for female obstetricians/gynecologists are higher
than those of male obstetricians/gynecologists . What is the best
explanation for this?
Answer: The demand for female obstetricians/gynecologists is
greater than the demand for male obstetricians/gynecologists
◉ 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 and level of
employment be?
, Answer: W1 and E1
◉ Which of the following statements is true about cost shifting in
hospitals?
Answer: The ability to cost shift depends on a hospital's payer mix.
◉ Which of the following statements is true concerning the trend in
community hospital care between inpatient and outpatient services
since the mid-1980s?
Answer: Outpatient services have been growing, while inpatient
services have been declining.
◉ In order to be a successful price discriminator, a provider must
have a degree of market power (depicted by a downward-sloping
demand curve) and meet what other condition(s)?
Answer: Markets must be segmentable, identifying differences in
ability to pay.
◉ Economies of scale exist when:
Answer: long-run average costs decline as output increases.
◉ The amount that Medicare pays a hospital for treating a Medicare
patient is determined:
Answer: at the point when the diagnosis is made.
MOCK EXAM AND STUDY MATERIAL WITH KEY
DEFINITIONS AND APPLICATIONS
◉ This study was the catalyst for the early twentieth century reform
of medical education in the United States. What was it?
Answer: Flexner Report
◉ Starting salaries for female obstetricians/gynecologists are higher
than those of male obstetricians/gynecologists . What is the best
explanation for this?
Answer: The demand for female obstetricians/gynecologists is
greater than the demand for male obstetricians/gynecologists
◉ 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 and level of
employment be?
, Answer: W1 and E1
◉ Which of the following statements is true about cost shifting in
hospitals?
Answer: The ability to cost shift depends on a hospital's payer mix.
◉ Which of the following statements is true concerning the trend in
community hospital care between inpatient and outpatient services
since the mid-1980s?
Answer: Outpatient services have been growing, while inpatient
services have been declining.
◉ In order to be a successful price discriminator, a provider must
have a degree of market power (depicted by a downward-sloping
demand curve) and meet what other condition(s)?
Answer: Markets must be segmentable, identifying differences in
ability to pay.
◉ Economies of scale exist when:
Answer: long-run average costs decline as output increases.
◉ The amount that Medicare pays a hospital for treating a Medicare
patient is determined:
Answer: at the point when the diagnosis is made.
