1
HEALTHCARE ECONOMICS MIDTERM
REVIEW/ACTUAL EXAM QUESTIONS &
ANSWERS RATED 100% CORRECT!!
Questions with Correct Answers for
Specific Exam Mail
What proportion of the GDP is spent on healthcare?
Ans: 0.18
arc elasticity of demand
Ans: price elasticity calculated over a range of prices
True of False: Healthcare has an ELASTIC demand
Ans: False: Healthcare has an INELASTIC demand. Any
value between 0 and -1 has an inelastic demand. This
proposes that while healthcare demand does change to
price, the change is not significant enough for it to be
considered elastic.
does price for care affect health?
:
vPretest - Stuvia US
,2
Ans: Price alone does NOT affect ones health. However,
other factors may contribute to it affecting health such as
low-income, or having high blood pressure).
The Grossman Model (3 components)
Ans: Health plays as a:
Consumption Good
An input into Production
A form of Stock
Utility
Ans: Usefulness; capable of satisfying wants and needs
H and X relationship (Ut=U(Ht, Xt))
Ans: H represents level of health
X represents home goods that contribute to usefulness
and satisfaction (i.e video games, time with friends)
:
vPretest - Stuvia US
, 3
Health Disparity
Ans: differences in health -- incidence, prevalence,
mortality, and burden of disease -- between specific
populations
True or False: Educated individuals are more likely to live
longer compared to HS dropouts
Ans: TRUE
Why do disparities exist?
Ans: Early life events
Income levels
Stress of being poor
Work Capacity
Impatience
Adherence to Medical Advice
Which of the following is incorrect about US healthcare?
:
vPretest - Stuvia US
HEALTHCARE ECONOMICS MIDTERM
REVIEW/ACTUAL EXAM QUESTIONS &
ANSWERS RATED 100% CORRECT!!
Questions with Correct Answers for
Specific Exam Mail
What proportion of the GDP is spent on healthcare?
Ans: 0.18
arc elasticity of demand
Ans: price elasticity calculated over a range of prices
True of False: Healthcare has an ELASTIC demand
Ans: False: Healthcare has an INELASTIC demand. Any
value between 0 and -1 has an inelastic demand. This
proposes that while healthcare demand does change to
price, the change is not significant enough for it to be
considered elastic.
does price for care affect health?
:
vPretest - Stuvia US
,2
Ans: Price alone does NOT affect ones health. However,
other factors may contribute to it affecting health such as
low-income, or having high blood pressure).
The Grossman Model (3 components)
Ans: Health plays as a:
Consumption Good
An input into Production
A form of Stock
Utility
Ans: Usefulness; capable of satisfying wants and needs
H and X relationship (Ut=U(Ht, Xt))
Ans: H represents level of health
X represents home goods that contribute to usefulness
and satisfaction (i.e video games, time with friends)
:
vPretest - Stuvia US
, 3
Health Disparity
Ans: differences in health -- incidence, prevalence,
mortality, and burden of disease -- between specific
populations
True or False: Educated individuals are more likely to live
longer compared to HS dropouts
Ans: TRUE
Why do disparities exist?
Ans: Early life events
Income levels
Stress of being poor
Work Capacity
Impatience
Adherence to Medical Advice
Which of the following is incorrect about US healthcare?
:
vPretest - Stuvia US
