Healthcare Policy and Economics (H400) Practice
Exam Questions and correct Answers (Verified
Answers) with Rationales 2025
1. What is the primary purpose of healthcare policy?
A) To increase hospital profits
B) To improve public health and access to care
C) To reduce medical malpractice lawsuits
D) To limit healthcare provider training
Healthcare policy aims to improve population health outcomes and
ensure equitable access to healthcare services.
2. Which program primarily provides health insurance for people aged 65 and
older in the United States?
A) Medicaid
B) CHIP
C) Medicare
D) TRICARE
Medicare is the federal program covering primarily seniors 65 and older.
3. What does the term "moral hazard" mean in health insurance?
A) The ethical responsibility of providers
, B) Risk of insurance fraud
C) Increased utilization of healthcare when insured
D) Legal liability for malpractice
Moral hazard refers to insured individuals consuming more healthcare
services because they do not bear the full cost.
4. Which economic principle explains the shortage of healthcare professionals
in rural areas?
A) Demand exceeds supply
B) Price ceilings
C) Externalities
D) Market failure
Market failure occurs when free markets do not allocate resources
efficiently, such as shortages in rural healthcare.
5. What is the key difference between Medicare and Medicaid?
A) Medicare is state-funded, Medicaid is federal-funded
B) Medicaid is only for elderly patients
C) Medicare serves elderly and disabled; Medicaid serves low-income
individuals
D) Medicaid requires employer contributions
Medicare is federally funded and for elderly/disabled, while Medicaid is
state and federal-funded for low-income people.
6. The Affordable Care Act (ACA) primarily aimed to:
A) Privatize healthcare completely
B) Expand health insurance coverage and reduce costs
Exam Questions and correct Answers (Verified
Answers) with Rationales 2025
1. What is the primary purpose of healthcare policy?
A) To increase hospital profits
B) To improve public health and access to care
C) To reduce medical malpractice lawsuits
D) To limit healthcare provider training
Healthcare policy aims to improve population health outcomes and
ensure equitable access to healthcare services.
2. Which program primarily provides health insurance for people aged 65 and
older in the United States?
A) Medicaid
B) CHIP
C) Medicare
D) TRICARE
Medicare is the federal program covering primarily seniors 65 and older.
3. What does the term "moral hazard" mean in health insurance?
A) The ethical responsibility of providers
, B) Risk of insurance fraud
C) Increased utilization of healthcare when insured
D) Legal liability for malpractice
Moral hazard refers to insured individuals consuming more healthcare
services because they do not bear the full cost.
4. Which economic principle explains the shortage of healthcare professionals
in rural areas?
A) Demand exceeds supply
B) Price ceilings
C) Externalities
D) Market failure
Market failure occurs when free markets do not allocate resources
efficiently, such as shortages in rural healthcare.
5. What is the key difference between Medicare and Medicaid?
A) Medicare is state-funded, Medicaid is federal-funded
B) Medicaid is only for elderly patients
C) Medicare serves elderly and disabled; Medicaid serves low-income
individuals
D) Medicaid requires employer contributions
Medicare is federally funded and for elderly/disabled, while Medicaid is
state and federal-funded for low-income people.
6. The Affordable Care Act (ACA) primarily aimed to:
A) Privatize healthcare completely
B) Expand health insurance coverage and reduce costs
