MHA 710 Module 1 Exam Questions Fully Solved Latest Update 2025 Already Passed
What is "economics"? - Answers A Map for decision making. Economics analyzes the allocation of scarce
resources.
What are some of the specific challenges faced by managers in healthcare? - Answers 1. The central
roles of risk and uncertainty
2. The complexities created by insurance
3. The perils produced by information asymmetries
4. The problems posed by not-for-profit organizations
5. The rapid and confusing course of technical and institutional change
What does asymmetric information mean? Can you give an example? - Answers When one party in a
transaction has less information than the other party. For example, physicians and other healthcare
providers usually understand patients' medical options better than patients do. Unaware of their
choices, patients may accept recommendations for therapies that are not cost-effective or, recognizing
their vulnerability to physicians' self-serving advice, may resist recommendations made in their best
interest.
What is adverse selection? - Answers A situation that occurs when buyers have better information than
sellers. For example, high-risk consumers are willing to pay more for insurance than low-risk consumers
are. (Organizations that have difficulty distinguishing high-risk from low-risk consumers are unlikely to
be profitable.)
What is the problem of scarcity? - Answers Demand for a good or service is greater than the availability
What does it mean to say people are assumed to make choices rationally? - Answers focuses on
individuals' efforts to best realize their goals, given their resources.
What does it mean to says resources are scarce? - Answers Anything useful in consumption or
production that has alternative uses.
What is opportunity cost? - Answers Potential loss from a missed opportunity. Passing up the next best
choice.
, What does "marginal" refer to? - Answers The examination of the costs and benefits through a small
change in the production of goods
What does efficiency refer to? - Answers No way to rearrange production of goods in a way that makes
one person more better off without making somebody else worse off. How well an economy uses scare
resources to meet the needs/wants of their customers
How do positive economic statements differ from normative economic statements? - Answers Positive
economics is objective while normative economics is subjective. Facts/ What is vs What should be
How can economics be applied to the health sector? - Answers Describe, Explain, Evaluate, Plan
As we progress through the chapters, think about the special characteristics that apply to the health
sector that might limit the applicability of traditional economic models. - Answers Social determinants of
health, few insurance companies that providers rely on, not a perfectly competitive market
How are healthcare products both outputs and inputs? Can you give an example? - Answers Products
(goods and services are considered products) are commonly both inputs and outputs. For example, a
surgical tool is an input into a surgery and an output of a surgical tool company. Similarly, the surgery
itself can be considered an output of the surgical team or an input into the health of the patient.
What is a life year? And what is it used for in the context of this chapter? - Answers One additional year
of life. It can equal one added year of life for an individual or an average of 1/nth of a year of life for n
people. An example is spending $1 million by reducing childhood obesity and saving thousands of lives
or using if for colonoscopies in 81 year old african american men and saving few lives.
What are examples of interventions that have the most impact on life years and those that have less
impact? - Answers Interventions with the most include antismoking, reducing childhood obesity, and
multidisciplinary measurement of heart failure. Interventions with the least include colonoscopies for
african american men who are 81 or 76 and multidisciplinary heart failure measurement with exercise.
How does healthcare spending per person in the US compare to other countries? - Answers US spends
far more per person on healthcare than any other large countries.
How does US life expectancy at birth compare to other countries? - Answers 27 out of 34 of the OECD
countries (bad!)
Has the US achieved the same increases in life expectancy relative to their changes in spending as in
other countries? - Answers From one perspective, this increase in life expectancy reflects impres-sive
performance. From another, it does not compare well to the performance of other industrialized
countries. For example, French life expectancy at birth rose from 79.2 years in 2000 to 82.4 years in
2015, and costs increased less than half as much in France as in the United States
Why might we want to measure healthcare spending as a share of GDP instead of just healthcare
spending per person? - Answers What appears to be higher spending, however, might just be the effects
What is "economics"? - Answers A Map for decision making. Economics analyzes the allocation of scarce
resources.
What are some of the specific challenges faced by managers in healthcare? - Answers 1. The central
roles of risk and uncertainty
2. The complexities created by insurance
3. The perils produced by information asymmetries
4. The problems posed by not-for-profit organizations
5. The rapid and confusing course of technical and institutional change
What does asymmetric information mean? Can you give an example? - Answers When one party in a
transaction has less information than the other party. For example, physicians and other healthcare
providers usually understand patients' medical options better than patients do. Unaware of their
choices, patients may accept recommendations for therapies that are not cost-effective or, recognizing
their vulnerability to physicians' self-serving advice, may resist recommendations made in their best
interest.
What is adverse selection? - Answers A situation that occurs when buyers have better information than
sellers. For example, high-risk consumers are willing to pay more for insurance than low-risk consumers
are. (Organizations that have difficulty distinguishing high-risk from low-risk consumers are unlikely to
be profitable.)
What is the problem of scarcity? - Answers Demand for a good or service is greater than the availability
What does it mean to say people are assumed to make choices rationally? - Answers focuses on
individuals' efforts to best realize their goals, given their resources.
What does it mean to says resources are scarce? - Answers Anything useful in consumption or
production that has alternative uses.
What is opportunity cost? - Answers Potential loss from a missed opportunity. Passing up the next best
choice.
, What does "marginal" refer to? - Answers The examination of the costs and benefits through a small
change in the production of goods
What does efficiency refer to? - Answers No way to rearrange production of goods in a way that makes
one person more better off without making somebody else worse off. How well an economy uses scare
resources to meet the needs/wants of their customers
How do positive economic statements differ from normative economic statements? - Answers Positive
economics is objective while normative economics is subjective. Facts/ What is vs What should be
How can economics be applied to the health sector? - Answers Describe, Explain, Evaluate, Plan
As we progress through the chapters, think about the special characteristics that apply to the health
sector that might limit the applicability of traditional economic models. - Answers Social determinants of
health, few insurance companies that providers rely on, not a perfectly competitive market
How are healthcare products both outputs and inputs? Can you give an example? - Answers Products
(goods and services are considered products) are commonly both inputs and outputs. For example, a
surgical tool is an input into a surgery and an output of a surgical tool company. Similarly, the surgery
itself can be considered an output of the surgical team or an input into the health of the patient.
What is a life year? And what is it used for in the context of this chapter? - Answers One additional year
of life. It can equal one added year of life for an individual or an average of 1/nth of a year of life for n
people. An example is spending $1 million by reducing childhood obesity and saving thousands of lives
or using if for colonoscopies in 81 year old african american men and saving few lives.
What are examples of interventions that have the most impact on life years and those that have less
impact? - Answers Interventions with the most include antismoking, reducing childhood obesity, and
multidisciplinary measurement of heart failure. Interventions with the least include colonoscopies for
african american men who are 81 or 76 and multidisciplinary heart failure measurement with exercise.
How does healthcare spending per person in the US compare to other countries? - Answers US spends
far more per person on healthcare than any other large countries.
How does US life expectancy at birth compare to other countries? - Answers 27 out of 34 of the OECD
countries (bad!)
Has the US achieved the same increases in life expectancy relative to their changes in spending as in
other countries? - Answers From one perspective, this increase in life expectancy reflects impres-sive
performance. From another, it does not compare well to the performance of other industrialized
countries. For example, French life expectancy at birth rose from 79.2 years in 2000 to 82.4 years in
2015, and costs increased less than half as much in France as in the United States
Why might we want to measure healthcare spending as a share of GDP instead of just healthcare
spending per person? - Answers What appears to be higher spending, however, might just be the effects
