EXAM 1: LSUS MHA 710 ECONOMICS,
2024/2025 WITH CORRECT/
ACCURATE ANSWERS
Which of the following represents the largest category of health
care spending in the United States? - CORRECT ANSWERS-
Hospital Care
According to Adam Smith's terminology, the "invisible hand"
refers to: - CORRECT ANSWERS- Market forces working through
the price mechanism.
The direct effect of a shortage of hospital beds in a hospital
services market is: - CORRECT ANSWERS- Upward pressure on
the price of a hospital stay.
What term is used when physicians know more about alternative
treatments than their patients do? - CORRECT ANSWERS-
Asymmetric information.
A health insurance arrangement where individuals have access to
health care in exchange for a set premium is called: - CORRECT
ANSWERS- Third-party payment system.
, All of the following will cause a shift in the medical care supply
curve, except: - CORRECT ANSWERS- A change in the percentage
of the population with health insurance.
Assuming providers will accommodate patient desires, what effect
would a binding price ceiling have on the health care market? -
CORRECT ANSWERS- Price will decrease to adhere to the price
ceiling & quantity will increase.
Suppose the U.S. Food & Drug Administration restricts the amount
of prescription opiates produced & sold in the U.S. market. What
is the likely effect on the market for drugs used to control chronic
pain the United States? - CORRECT ANSWERS- The price of
prescription opiates will increase & the quantity consumed will
decrease.
The following graph depicts the market for CT scanners in the
United States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20
million per machine. If the government places a $100,000 excise
tax on each new scanner sold, the new equilibrium price will be: -
CORRECT ANSWERS- less than $1.30 million.
Suppose robotic technology improves the results of abdominal
surgery—less time to perform the surgery, faster recovery times,
and fewer mistakes. What is the impact on the market for
abdominal surgery using this new technology? - CORRECT
2024/2025 WITH CORRECT/
ACCURATE ANSWERS
Which of the following represents the largest category of health
care spending in the United States? - CORRECT ANSWERS-
Hospital Care
According to Adam Smith's terminology, the "invisible hand"
refers to: - CORRECT ANSWERS- Market forces working through
the price mechanism.
The direct effect of a shortage of hospital beds in a hospital
services market is: - CORRECT ANSWERS- Upward pressure on
the price of a hospital stay.
What term is used when physicians know more about alternative
treatments than their patients do? - CORRECT ANSWERS-
Asymmetric information.
A health insurance arrangement where individuals have access to
health care in exchange for a set premium is called: - CORRECT
ANSWERS- Third-party payment system.
, All of the following will cause a shift in the medical care supply
curve, except: - CORRECT ANSWERS- A change in the percentage
of the population with health insurance.
Assuming providers will accommodate patient desires, what effect
would a binding price ceiling have on the health care market? -
CORRECT ANSWERS- Price will decrease to adhere to the price
ceiling & quantity will increase.
Suppose the U.S. Food & Drug Administration restricts the amount
of prescription opiates produced & sold in the U.S. market. What
is the likely effect on the market for drugs used to control chronic
pain the United States? - CORRECT ANSWERS- The price of
prescription opiates will increase & the quantity consumed will
decrease.
The following graph depicts the market for CT scanners in the
United States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20
million per machine. If the government places a $100,000 excise
tax on each new scanner sold, the new equilibrium price will be: -
CORRECT ANSWERS- less than $1.30 million.
Suppose robotic technology improves the results of abdominal
surgery—less time to perform the surgery, faster recovery times,
and fewer mistakes. What is the impact on the market for
abdominal surgery using this new technology? - CORRECT
