LSUS MHA 707 Ch 6 - Financing the Health Care System
(EXAM C) Questions with CORRECT Answers (Grade
A+)
Question 1:
Uncertainty in Health Care
Answer:
Incomplete knowledge about the human body, disease, and medicine, leading to special economic
problems and adaptations to uncertainty in the incidence of disease and efficacy of treatment (Arrow,
1963).
Question 2:
Asymmetries of Information
Answer:
Information imbalances between parties, such as physician vs. patient vs. 3rd party payer, leading to
nonmarketability of risks inherent in medicine and medical practice.
Question 3:
Moral Hazard
Answer:
Behavioral change when individuals know someone else is bearing the risk, leading to induced demand
in health care.
Question 4:
Adverse Selection
Answer:
Tendency for sicker individuals to seek more insurance, leading to healthier individuals seeking less,
influencing health insurance dynamics.
Question 5:
Pooling of Risk
Answer:
Sharing risk proportionately among many, a fundamental concept in insurance to manage uncertainty
in health care.
, Question 6:
National Health Expenditure Accounts (NHEA)
Answer:
Official estimates of health care spending in the United States, measuring health care consumption and
investment, providing comprehensive, multidimensional, and consistent data, published by the U.S.
Department of Health and Human Services (DHHS).
Question 7:
National Health Expenditures (NHE)
Answer:
Total health care consumption and investments in medical structures, equipment, noncommercial
health services, and biomedical research, a subset of NHE.
Question 8:
Health Consumption Expenditures (HCE)
Answer:
Includes personal health care spending, government administration, net cost of private health
insurance, and public health activities, calculated as NHE minus HCE, representing the amount of
investment in the Medical Sector of the economy.
Question 9:
Personal Health Care (PHC)
Answer:
Subset of HCE, encompassing all medical goods and services used to diagnose, treat, and prevent
health problems in a specific person.
Question 10:
Question not clearly extracted from source.
Answer:
National Health Approximately $3.49 trillion, accounting for 17.9% of GDP and $10,739 per capita,
Expenditures reflecting a significant and increasing financial burden on the economy. (NHE) in 2017
(EXAM C) Questions with CORRECT Answers (Grade
A+)
Question 1:
Uncertainty in Health Care
Answer:
Incomplete knowledge about the human body, disease, and medicine, leading to special economic
problems and adaptations to uncertainty in the incidence of disease and efficacy of treatment (Arrow,
1963).
Question 2:
Asymmetries of Information
Answer:
Information imbalances between parties, such as physician vs. patient vs. 3rd party payer, leading to
nonmarketability of risks inherent in medicine and medical practice.
Question 3:
Moral Hazard
Answer:
Behavioral change when individuals know someone else is bearing the risk, leading to induced demand
in health care.
Question 4:
Adverse Selection
Answer:
Tendency for sicker individuals to seek more insurance, leading to healthier individuals seeking less,
influencing health insurance dynamics.
Question 5:
Pooling of Risk
Answer:
Sharing risk proportionately among many, a fundamental concept in insurance to manage uncertainty
in health care.
, Question 6:
National Health Expenditure Accounts (NHEA)
Answer:
Official estimates of health care spending in the United States, measuring health care consumption and
investment, providing comprehensive, multidimensional, and consistent data, published by the U.S.
Department of Health and Human Services (DHHS).
Question 7:
National Health Expenditures (NHE)
Answer:
Total health care consumption and investments in medical structures, equipment, noncommercial
health services, and biomedical research, a subset of NHE.
Question 8:
Health Consumption Expenditures (HCE)
Answer:
Includes personal health care spending, government administration, net cost of private health
insurance, and public health activities, calculated as NHE minus HCE, representing the amount of
investment in the Medical Sector of the economy.
Question 9:
Personal Health Care (PHC)
Answer:
Subset of HCE, encompassing all medical goods and services used to diagnose, treat, and prevent
health problems in a specific person.
Question 10:
Question not clearly extracted from source.
Answer:
National Health Approximately $3.49 trillion, accounting for 17.9% of GDP and $10,739 per capita,
Expenditures reflecting a significant and increasing financial burden on the economy. (NHE) in 2017
