HPO Exam Questions With Reviewed Correct Detailed Answers New Update!!

HPO Exam Questions With Reviewed Correct Detailed Answers New Update!! 1. The price elasticity of demand captures the responsiveness of the _______ to the changes in _____ - ANSWER quantity demanded, changes in price 2. When demand is ____ insurance coverage that reduces out of pocket cost will lead to a small increase in utilization compared to when demand is ____ - ANSWER inelastic; elastic 3. Under which of the following situations will the deadweight loss from a moral hazard be smallest? Inelastic demand and low coinsurance rate Inelastic demand and high coinsurance rate Elastic demand and low coinsurance rate Elastic demand and high coinsurance rate - ANSWER Inelastic demand and high coinsurance rate 4. In the article by Gruber and Owings, what is the source of the initial income shock the authors use to study demand inducement among obstetricians? Medical liability reform Increased immigration Decline in fertility Medicaid cuts in physician reimbursement - ANSWER Decline in fertility 5. Which of the following will lead to higher insurance premiums? Decrease in probability of sickness Increase in coinsurance rate Increase in insurance market competition None of the above - ANSWER None of the above 6. The maximum premium a risk-neutral individual is willing to pay for insurance that covers the entire loss is: Equal to the expected loss Less than the expected loss Greater than the expected loss Zero; a risk-averse individual will never purchase insurance - ANSWER Equal to the expected loss 7. Mandating that individuals purchase health insurance is designed to address which of the following issues: Adverse selection Moral hazard Risk aversion None of the above - ANSWER Adverse selection 8. The 1970s policy response to "Medical Arms Race" style competition among hospitals was: Medical Liability Reform Consumer Directed Health Plans Community Health Centers Certificate of Need - ANSWER Certificate of Need 9. Which of the following would negatively impact the profits of pharmaceutical companies? Reducing the length (years) of drug patents Allowing for the re-importation of prescription drugs from abroad Requiring drug companies to charge uniform prices in all developed nations All of the above - ANSWER All of the above 10. Which of the following is an example of negative defensive medicine? Physician ordering a CT scan for a patient complaining of migraines OB/GYN electing to no longer deliver babies Physician performing an EKG test on a young adult complaining of moderate chest pain None of the above - ANSWER OB/GYN electing to no longer deliver babies