LSUS MHA 710 Economics Exam 3 Questions And
accurate Answers
Which of the following characteristics is true of the pharmaceutical industry? - ANSWER
Exclusive rights to market & sell patented products.
The tax fully dedicated to provide support for Medicare Part A is: - ANSWER A 2.9
percent payroll tax paid by all workers, regardless of their age.
Several reform options have been discussed by Congress to solve some of the
structural problems that plague the program. Which of the following options has
received little support? - ANSWER Limit the coverage for end-of-life care, the most
expensive single item in Medicare, to include only essential palliative care.
Part B pays what percentage of the allowable fee set by Medicare? - ANSWER 80
percent.
Which of the following is true regarding the trend in community hospital care between
inpatient & outpatient services since the mid-1980s? - ANWER Outpatient services have
grown, whereas inpatient services have declined.
On average, what percentage of their sales revenue do biopharmaceutical companies
spend on research & development? - ANWER 5-10 percent.
Medicare covered approximately how many Americans in 2019? - ANWER 60 milllion.
What did the agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS) do primarily to the domestic policy of the United States? ANSWER It extended
the life of patents from 17 years from the date of grant to 20 years from the date of
application.
, Suppose the market for nursing services in a local community is dominated by a single
community hospital to such an extent that for all practical purposes it is considered a
monopsony. Using the diagram below, answer the question.
If the market was perfectly competitive rather than dominated by a monopsonist, what
would be the equilibrium wage & level of employment be? - ANSWER W1 & E1.
For a supplier to be an effective price discriminator not only must he have a degree of
market power / represented by a downward-sloping demand curve) &, but also but what
other condition(s)? - ANSWER Markets must be segmentable, distinguishing differences
in ability to pay.
The combination of 2 community hospitals located in the same geographic market is
referred to as: - ANSWER Horizontal integration.
One of the major reasons that expensive technology is being brought into the health
care system is: - ANSWER Third-party insurance pays most of the cost of care.
Physicians who own their own diagnostic testing facilities order more tests, charge
higher fees for them, & have higher total bills to patients. This practice of self-referral is
an example of: - ANSWER Physician-induced demand.
About what percent of Medicare enrollees received care in an inpatient hospital in
2018? ANSWER 15 percent.
Which of the following is a Part B service? ANSWER Emergency room care.
The rate of return on an investment in medical education: ANSWER Is inversely related
to the length of time spent in formal schooling.
In the figure below, D1 shows the market scenario where insurance is not available to
help consumers buy the monopolist product. The imposition of insurance with an
average of 25 percent copay as shown by D2, would have the following impact: -
accurate Answers
Which of the following characteristics is true of the pharmaceutical industry? - ANSWER
Exclusive rights to market & sell patented products.
The tax fully dedicated to provide support for Medicare Part A is: - ANSWER A 2.9
percent payroll tax paid by all workers, regardless of their age.
Several reform options have been discussed by Congress to solve some of the
structural problems that plague the program. Which of the following options has
received little support? - ANSWER Limit the coverage for end-of-life care, the most
expensive single item in Medicare, to include only essential palliative care.
Part B pays what percentage of the allowable fee set by Medicare? - ANSWER 80
percent.
Which of the following is true regarding the trend in community hospital care between
inpatient & outpatient services since the mid-1980s? - ANWER Outpatient services have
grown, whereas inpatient services have declined.
On average, what percentage of their sales revenue do biopharmaceutical companies
spend on research & development? - ANWER 5-10 percent.
Medicare covered approximately how many Americans in 2019? - ANWER 60 milllion.
What did the agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS) do primarily to the domestic policy of the United States? ANSWER It extended
the life of patents from 17 years from the date of grant to 20 years from the date of
application.
, Suppose the market for nursing services in a local community is dominated by a single
community hospital to such an extent that for all practical purposes it is considered a
monopsony. Using the diagram below, answer the question.
If the market was perfectly competitive rather than dominated by a monopsonist, what
would be the equilibrium wage & level of employment be? - ANSWER W1 & E1.
For a supplier to be an effective price discriminator not only must he have a degree of
market power / represented by a downward-sloping demand curve) &, but also but what
other condition(s)? - ANSWER Markets must be segmentable, distinguishing differences
in ability to pay.
The combination of 2 community hospitals located in the same geographic market is
referred to as: - ANSWER Horizontal integration.
One of the major reasons that expensive technology is being brought into the health
care system is: - ANSWER Third-party insurance pays most of the cost of care.
Physicians who own their own diagnostic testing facilities order more tests, charge
higher fees for them, & have higher total bills to patients. This practice of self-referral is
an example of: - ANSWER Physician-induced demand.
About what percent of Medicare enrollees received care in an inpatient hospital in
2018? ANSWER 15 percent.
Which of the following is a Part B service? ANSWER Emergency room care.
The rate of return on an investment in medical education: ANSWER Is inversely related
to the length of time spent in formal schooling.
In the figure below, D1 shows the market scenario where insurance is not available to
help consumers buy the monopolist product. The imposition of insurance with an
average of 25 percent copay as shown by D2, would have the following impact: -
