HEALTHCARE ECONOMICS EXAM VERIFIED
ANSWERS AND QUESTIONS
T or F: Economics is a tool kit which enables us to know, for any change in one
factor how it will affect something else. - ANSWER False
Economic analysis involves the study of the relationship between two (or more)
subjects. Commonly, these kinds of relationships involve all of the following
except which? - ANSWER Technologists
T or F: Economic analysis allows the policy maker to assess whether a policy is
achieving its intended impact and can suggest if a policy needs to be revised. -
ANSWER True
Health economics has its conceptual underpinning in what conceptual
framework? - ANSWER Microeconomic theory
The more utility, the greater the ________ of the individual. - ANSWER
happiness
Eventually, additional health-related goods or services do not make people feel
better off. This is a consequence of the theory of ______________. - ANSWER
diminishing marginal utility
T or F: Consumers select the bundle of goods and services that will give them
the least utility given their own income and the prices of goods and services. -
ANSWER false
, Unlike profit-making firms, nonprofit firms do not distribute funds to
shareholders. Rather, they - ANSWER reinvest profits back into the firm.
T or F: Healthcare markets are always competitive. - ANSWER false
In health care, the price the consumer pays is usually decided by what -
ANSWER insurance contracts
The law of diminishing returns implies that health improves at a/an
____________ rate w.r.t additional amounts of medical care. - ANSWER
Decreasing
T or F: The relationship between health and wealth is bidirectional. - ANSWER
true
The relationship between health and wealth can most accurately be represented
____________. - ANSWER Nonlinearly
T or F: A society with narrow distribution of income has an average health
status that is worse than that of a society with a wide distribution of income. -
ANSWER False
The absolute income hypothesis suggests that - ANSWER Greater income
means lower mortality and morbidity
T or F: Income inequality is often measured by a Gini coefficient. A Gini
coefficient of 0.3 implies greater income equality than a Gini coefficient of 0.7.
- ANSWER True
ANSWERS AND QUESTIONS
T or F: Economics is a tool kit which enables us to know, for any change in one
factor how it will affect something else. - ANSWER False
Economic analysis involves the study of the relationship between two (or more)
subjects. Commonly, these kinds of relationships involve all of the following
except which? - ANSWER Technologists
T or F: Economic analysis allows the policy maker to assess whether a policy is
achieving its intended impact and can suggest if a policy needs to be revised. -
ANSWER True
Health economics has its conceptual underpinning in what conceptual
framework? - ANSWER Microeconomic theory
The more utility, the greater the ________ of the individual. - ANSWER
happiness
Eventually, additional health-related goods or services do not make people feel
better off. This is a consequence of the theory of ______________. - ANSWER
diminishing marginal utility
T or F: Consumers select the bundle of goods and services that will give them
the least utility given their own income and the prices of goods and services. -
ANSWER false
, Unlike profit-making firms, nonprofit firms do not distribute funds to
shareholders. Rather, they - ANSWER reinvest profits back into the firm.
T or F: Healthcare markets are always competitive. - ANSWER false
In health care, the price the consumer pays is usually decided by what -
ANSWER insurance contracts
The law of diminishing returns implies that health improves at a/an
____________ rate w.r.t additional amounts of medical care. - ANSWER
Decreasing
T or F: The relationship between health and wealth is bidirectional. - ANSWER
true
The relationship between health and wealth can most accurately be represented
____________. - ANSWER Nonlinearly
T or F: A society with narrow distribution of income has an average health
status that is worse than that of a society with a wide distribution of income. -
ANSWER False
The absolute income hypothesis suggests that - ANSWER Greater income
means lower mortality and morbidity
T or F: Income inequality is often measured by a Gini coefficient. A Gini
coefficient of 0.3 implies greater income equality than a Gini coefficient of 0.7.
- ANSWER True
