MHA 710 Exam 2 Questions and
Answers 100% Solved | Graded A+
The direct costs in an economic evaluation include the all the following except: -
✔✔reduced productivity at work
When measuring effectiveness of a treatment, surrogate measures reflect
clinical efficacy and include: - ✔✔bone-mass density (BMD)
Which of the following measures of effectiveness is not a surrogate measure? -
✔✔Hip fracture
The intangible costs associated with reduced quality of life include: - ✔✔Pain
and suffering
Suppose that you are asked to use the standard time trade-off approach to
measuring quality of life and are given the following information. An individual
is faced with living the remaining 10 years of her life suffering from severe
osteoporosis. She reveals that she would be willing to give up four of those
years to live the remaining six in perfect health. What is the utility of one year in
the chronic health state relative to perfect health? - ✔✔0.6
Researchers estimate QALYs in a number of different ways. One popular
approach is called the - ✔✔standard gamble
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,The standard cut-off for cost per QALY is ______ per capita income. - ✔✔equal
to
Cost-effectiveness considerations are more formally integrated into health
policy making in - ✔✔Australia, Europe, Canada
Steps in performing a cost-effectiveness analysis include all of these EXCEPT -
✔✔prioritizing the alternative treatment options
Researchers use cost-of-illness studies to - ✔✔do all of the above
(a. study the burden of a disease
b. determine the low-cost option to treat a disease
c. compare two or more treatment options when the medical outcome is
identical
d. increase public awareness of cost of treating certain diseases)
Many economists consider medical care a superior good. Which of the following
statements is true regarding a superior good? - ✔✔Both c and d are true of
superior goods
(As consumer income increases, a larger percentage of that income is spent on
superior goods
A superior good has an income elasticity of demand greater than 1)
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©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
, A critical assumption in the model of demand and supply is the independence of
demand and supply curves. If the two are not independent, a shift in the supply
curve can lead to a shift in the demand curve referred to as - ✔✔supplier-
induced demand.
The top ten causes of death in the United States in 2010 included all of the
following except - ✔✔AIDS
The accompanying diagram depicts the relationship between health status and
medical care spending for a particular country. Which of the following
statements is true? - ✔✔Social pressures will move the health care system to
spend S2.
Health care that actually harms the patient, such as an adverse reaction to a
prescription drug, is called - ✔✔iatrogenic disease
The number one cause of death in the United States in 1980 was - ✔✔heart
disease
Health insurance features that tend to reduce moral hazard include - ✔✔all of
the above
(a. deductibles, coinsurance, copayments)
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©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
Answers 100% Solved | Graded A+
The direct costs in an economic evaluation include the all the following except: -
✔✔reduced productivity at work
When measuring effectiveness of a treatment, surrogate measures reflect
clinical efficacy and include: - ✔✔bone-mass density (BMD)
Which of the following measures of effectiveness is not a surrogate measure? -
✔✔Hip fracture
The intangible costs associated with reduced quality of life include: - ✔✔Pain
and suffering
Suppose that you are asked to use the standard time trade-off approach to
measuring quality of life and are given the following information. An individual
is faced with living the remaining 10 years of her life suffering from severe
osteoporosis. She reveals that she would be willing to give up four of those
years to live the remaining six in perfect health. What is the utility of one year in
the chronic health state relative to perfect health? - ✔✔0.6
Researchers estimate QALYs in a number of different ways. One popular
approach is called the - ✔✔standard gamble
1|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
,The standard cut-off for cost per QALY is ______ per capita income. - ✔✔equal
to
Cost-effectiveness considerations are more formally integrated into health
policy making in - ✔✔Australia, Europe, Canada
Steps in performing a cost-effectiveness analysis include all of these EXCEPT -
✔✔prioritizing the alternative treatment options
Researchers use cost-of-illness studies to - ✔✔do all of the above
(a. study the burden of a disease
b. determine the low-cost option to treat a disease
c. compare two or more treatment options when the medical outcome is
identical
d. increase public awareness of cost of treating certain diseases)
Many economists consider medical care a superior good. Which of the following
statements is true regarding a superior good? - ✔✔Both c and d are true of
superior goods
(As consumer income increases, a larger percentage of that income is spent on
superior goods
A superior good has an income elasticity of demand greater than 1)
2|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
, A critical assumption in the model of demand and supply is the independence of
demand and supply curves. If the two are not independent, a shift in the supply
curve can lead to a shift in the demand curve referred to as - ✔✔supplier-
induced demand.
The top ten causes of death in the United States in 2010 included all of the
following except - ✔✔AIDS
The accompanying diagram depicts the relationship between health status and
medical care spending for a particular country. Which of the following
statements is true? - ✔✔Social pressures will move the health care system to
spend S2.
Health care that actually harms the patient, such as an adverse reaction to a
prescription drug, is called - ✔✔iatrogenic disease
The number one cause of death in the United States in 1980 was - ✔✔heart
disease
Health insurance features that tend to reduce moral hazard include - ✔✔all of
the above
(a. deductibles, coinsurance, copayments)
3|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
