PHLT 412 Exam 3 | UPDATED Questions with 100% Verified Answers
Question:
What is economics?
Answer:
Production, distribution, and consumption of resources
Question:
Why do we need to study economics?
Answer:
How to allocate resources to maximize the best result for the most amount of people
Question:
How can economics be used in policy making?
Answer:
Policy makers make important decisions for citizens so they must focus on what they can
do to change someones mindset and behavior
Question:
T/F: Economists believe that people are rational actors who
will never purposely choose to make themselves worse off
Answer:
True
Question:
T/F: People seek to minimize utility
Answer:
False
Question:
What economic decisions need to be made? Why?
Answer:
,Due to the scarcity of resources, decisions need to be made about the production,
distribution, and consumption of health care resources with regards to individual
preference and efficiency
Question:
How can we analyze utility?
Answer:
Satisfaction can increase as resources increase but at some point in time, that satisfaction
will go down (diminishing marginal utility)
Question:
What is meant by a scarce resource?
Answer:
Finite amount of healthcare goods, personnel and capital inputs
Question:
What is demand?
Answer:
How many people want the item
The quantity of goods and services that a consumer is willing and able to purchase over a
specified time
Question:
What are common demand shifters?
Answer:
Price of the original good, price of a substitute good, and price of a complementary
good
Income
Quality (actual or perceived)
Physical profile of consumer
Question:
What is demand elasticity?
Answer:
, The percentage change in the quantity demanded resulting from a 1% change in price or
income
Question:
If a product is elastic to demand...
Answer:
A change in price or income will result in an equivalent or greater change in demand
Very sensitive to price change (greater than 1)
Question:
If a product is inelastic to demand...
Answer:
The demand for the good is not sensitive to a change in price/income
Smaller than 1
Question:
Health insurance acts as a _____ between the consumer and
cost of health care goods and services
Answer:
Buffer
Question:
Goods and services cost the consumer ___ than the charged
price because of the presence of health insurance
Answer:
Less
Question:
What is moral hazard?
Answer:
Because a consumer does not pay the full cost of a good, the consumer may purchase
more goods than he would otherwise purchase without insurance
The unnecessary use of health care services - patients use more just because its a low
price or free
Question:
What is economics?
Answer:
Production, distribution, and consumption of resources
Question:
Why do we need to study economics?
Answer:
How to allocate resources to maximize the best result for the most amount of people
Question:
How can economics be used in policy making?
Answer:
Policy makers make important decisions for citizens so they must focus on what they can
do to change someones mindset and behavior
Question:
T/F: Economists believe that people are rational actors who
will never purposely choose to make themselves worse off
Answer:
True
Question:
T/F: People seek to minimize utility
Answer:
False
Question:
What economic decisions need to be made? Why?
Answer:
,Due to the scarcity of resources, decisions need to be made about the production,
distribution, and consumption of health care resources with regards to individual
preference and efficiency
Question:
How can we analyze utility?
Answer:
Satisfaction can increase as resources increase but at some point in time, that satisfaction
will go down (diminishing marginal utility)
Question:
What is meant by a scarce resource?
Answer:
Finite amount of healthcare goods, personnel and capital inputs
Question:
What is demand?
Answer:
How many people want the item
The quantity of goods and services that a consumer is willing and able to purchase over a
specified time
Question:
What are common demand shifters?
Answer:
Price of the original good, price of a substitute good, and price of a complementary
good
Income
Quality (actual or perceived)
Physical profile of consumer
Question:
What is demand elasticity?
Answer:
, The percentage change in the quantity demanded resulting from a 1% change in price or
income
Question:
If a product is elastic to demand...
Answer:
A change in price or income will result in an equivalent or greater change in demand
Very sensitive to price change (greater than 1)
Question:
If a product is inelastic to demand...
Answer:
The demand for the good is not sensitive to a change in price/income
Smaller than 1
Question:
Health insurance acts as a _____ between the consumer and
cost of health care goods and services
Answer:
Buffer
Question:
Goods and services cost the consumer ___ than the charged
price because of the presence of health insurance
Answer:
Less
Question:
What is moral hazard?
Answer:
Because a consumer does not pay the full cost of a good, the consumer may purchase
more goods than he would otherwise purchase without insurance
The unnecessary use of health care services - patients use more just because its a low
price or free
