Mha 710 Exam 1 Actual Exam | Questions And Correct Answers (Verified
Answers) | Already Graded A+ | Latest Version
What is "economics"? - (CORRECT ANSWER)A Map for decision making. Economics analyzes the
allocation of scarce resources.
What are some of the specific challenges faced by managers in healthcare? - (CORRECT ANSWER)1. The
central roles of risk and uncertainty
2. The complexities created by insurance
3. The perils produced by information asymmetries
4. The problems posed by not-for-profit organizations
5. The rapid and confusing course of technical and institutional change
What does asymmetric information mean? Can you give an example? - (CORRECT ANSWER)When one
party in a transaction has less information than the other party. For example, physicians and other
healthcare providers usually understand patients' medical options better than patients do. Unaware of
their choices, patients may accept recommendations for therapies that are not cost-effective or,
recognizing their vulnerability to physicians' self-serving advice, may resist recommendations made in
their best interest.
What is adverse selection? - (CORRECT ANSWER)A situation that occurs when buyers have better
information than sellers. For example, high-risk consumers are willing to pay more for insurance than
low-risk consumers are. (Organizations that have difficulty distinguishing high-risk from low-risk
consumers are unlikely to be profitable.)
What is the problem of scarcity? - (CORRECT ANSWER)Demand for a good or service is greater than the
availability
1
,What does it mean to say people are assumed to make choices rationally? - (CORRECT ANSWER)focuses
on individuals' efforts to best realize their goals, given their resources.
What does it mean to says resources are scarce? - (CORRECT ANSWER)Anything useful in consumption
or production that has alternative uses.
What is opportunity cost? - (CORRECT ANSWER)Potential loss from a missed opportunity. Passing up the
next best choice.
What does "marginal" refer to? - (CORRECT ANSWER)The examination of the costs and benefits through
a small change in the production of goods
What does efficiency refer to? - (CORRECT ANSWER)No way to rearrange production of goods in a way
that makes one person more better off without making somebody else worse off. How well an economy
uses scare resources to meet the needs/wants of their customers
How do positive economic statements differ from normative economic statements? - (CORRECT
ANSWER)Positive economics is objective while normative economics is subjective. Facts/ What is vs
What should be
How can economics be applied to the health sector? - (CORRECT ANSWER)Describe, Explain, Evaluate,
Plan
As we progress through the chapters, think about the special characteristics that apply to the health
sector that might limit the applicability of traditional economic models. - (CORRECT ANSWER)Social
determinants of health, few insurance companies that providers rely on, not a perfectly competitive
market
How are healthcare products both outputs and inputs? Can you give an example? - (CORRECT
ANSWER)Products (goods and services are considered products) are commonly both inputs and outputs.
For example, a surgical tool is an input into a surgery and an output of a surgical tool company. Similarly,
2
, the surgery itself can be considered an output of the surgical team or an input into the health of the
patient.
What is a life year? And what is it used for in the context of this chapter? - (CORRECT ANSWER)One
additional year of life. It can equal one added year of life for an individual or an average of 1/nth of a
year of life for n people. An example is spending $1 million by reducing childhood obesity and saving
thousands of lives or using if for colonoscopies in 81 year old african american men and saving few lives.
What are examples of interventions that have the most impact on life years and those that have less
impact? - (CORRECT ANSWER)Interventions with the most include antismoking, reducing childhood
obesity, and multidisciplinary measurement of heart failure. Interventions with the least include
colonoscopies for african american men who are 81 or 76 and multidisciplinary heart failure
measurement with exercise.
How does healthcare spending per person in the US compare to other countries? - (CORRECT
ANSWER)US spends far more per person on healthcare than any other large countries.
How does US life expectancy at birth compare to other countries? - (CORRECT ANSWER)27 out of 34 of
the OECD countries (bad!)
Has the US achieved the same increases in life expectancy relative to their changes in spending as in
other countries? - (CORRECT ANSWER)From one perspective, this increase in life expectancy reflects
impres-sive performance. From another, it does not compare well to the performance of other
industrialized countries. For example, French life expectancy at birth rose from 79.2 years in 2000 to
82.4 years in 2015, and costs increased less than half as much in France as in the United States
Why might we want to measure healthcare spending as a share of GDP instead of just healthcare
spending per person? - (CORRECT ANSWER)What appears to be higher spending, however, might just be
the effects of inflation. To avoid inaccuracies resulting from changes in the value of money, economists
use two strategies. The simplest and most reliable strategy to report spend-ing uses shares of national
income, or gross domestic product (GDP). This examination of shares removes the effects of inflation
What does inflation measure? - (CORRECT ANSWER)Changes in level of price or goods over time
3
Answers) | Already Graded A+ | Latest Version
What is "economics"? - (CORRECT ANSWER)A Map for decision making. Economics analyzes the
allocation of scarce resources.
What are some of the specific challenges faced by managers in healthcare? - (CORRECT ANSWER)1. The
central roles of risk and uncertainty
2. The complexities created by insurance
3. The perils produced by information asymmetries
4. The problems posed by not-for-profit organizations
5. The rapid and confusing course of technical and institutional change
What does asymmetric information mean? Can you give an example? - (CORRECT ANSWER)When one
party in a transaction has less information than the other party. For example, physicians and other
healthcare providers usually understand patients' medical options better than patients do. Unaware of
their choices, patients may accept recommendations for therapies that are not cost-effective or,
recognizing their vulnerability to physicians' self-serving advice, may resist recommendations made in
their best interest.
What is adverse selection? - (CORRECT ANSWER)A situation that occurs when buyers have better
information than sellers. For example, high-risk consumers are willing to pay more for insurance than
low-risk consumers are. (Organizations that have difficulty distinguishing high-risk from low-risk
consumers are unlikely to be profitable.)
What is the problem of scarcity? - (CORRECT ANSWER)Demand for a good or service is greater than the
availability
1
,What does it mean to say people are assumed to make choices rationally? - (CORRECT ANSWER)focuses
on individuals' efforts to best realize their goals, given their resources.
What does it mean to says resources are scarce? - (CORRECT ANSWER)Anything useful in consumption
or production that has alternative uses.
What is opportunity cost? - (CORRECT ANSWER)Potential loss from a missed opportunity. Passing up the
next best choice.
What does "marginal" refer to? - (CORRECT ANSWER)The examination of the costs and benefits through
a small change in the production of goods
What does efficiency refer to? - (CORRECT ANSWER)No way to rearrange production of goods in a way
that makes one person more better off without making somebody else worse off. How well an economy
uses scare resources to meet the needs/wants of their customers
How do positive economic statements differ from normative economic statements? - (CORRECT
ANSWER)Positive economics is objective while normative economics is subjective. Facts/ What is vs
What should be
How can economics be applied to the health sector? - (CORRECT ANSWER)Describe, Explain, Evaluate,
Plan
As we progress through the chapters, think about the special characteristics that apply to the health
sector that might limit the applicability of traditional economic models. - (CORRECT ANSWER)Social
determinants of health, few insurance companies that providers rely on, not a perfectly competitive
market
How are healthcare products both outputs and inputs? Can you give an example? - (CORRECT
ANSWER)Products (goods and services are considered products) are commonly both inputs and outputs.
For example, a surgical tool is an input into a surgery and an output of a surgical tool company. Similarly,
2
, the surgery itself can be considered an output of the surgical team or an input into the health of the
patient.
What is a life year? And what is it used for in the context of this chapter? - (CORRECT ANSWER)One
additional year of life. It can equal one added year of life for an individual or an average of 1/nth of a
year of life for n people. An example is spending $1 million by reducing childhood obesity and saving
thousands of lives or using if for colonoscopies in 81 year old african american men and saving few lives.
What are examples of interventions that have the most impact on life years and those that have less
impact? - (CORRECT ANSWER)Interventions with the most include antismoking, reducing childhood
obesity, and multidisciplinary measurement of heart failure. Interventions with the least include
colonoscopies for african american men who are 81 or 76 and multidisciplinary heart failure
measurement with exercise.
How does healthcare spending per person in the US compare to other countries? - (CORRECT
ANSWER)US spends far more per person on healthcare than any other large countries.
How does US life expectancy at birth compare to other countries? - (CORRECT ANSWER)27 out of 34 of
the OECD countries (bad!)
Has the US achieved the same increases in life expectancy relative to their changes in spending as in
other countries? - (CORRECT ANSWER)From one perspective, this increase in life expectancy reflects
impres-sive performance. From another, it does not compare well to the performance of other
industrialized countries. For example, French life expectancy at birth rose from 79.2 years in 2000 to
82.4 years in 2015, and costs increased less than half as much in France as in the United States
Why might we want to measure healthcare spending as a share of GDP instead of just healthcare
spending per person? - (CORRECT ANSWER)What appears to be higher spending, however, might just be
the effects of inflation. To avoid inaccuracies resulting from changes in the value of money, economists
use two strategies. The simplest and most reliable strategy to report spend-ing uses shares of national
income, or gross domestic product (GDP). This examination of shares removes the effects of inflation
What does inflation measure? - (CORRECT ANSWER)Changes in level of price or goods over time
3
