MHA 710 Exam 1 EXAM LATEST (2025) COMPLETE
QUESTIONS With 100% Verified Solutions,
What is "economics"? - (ANSWER)A Map for decision making. Economics
analyzes the allocation of scarce resources.
What are some of the specific challenges faced by managers in healthcare? -
(ANSWER)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? -
(ANSWER)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? - (ANSWER)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? - (ANSWER)Demand for a good or service is
greater than the availability
What does it mean to say people are assumed to make choices rationally? -
(ANSWER)focuses on individuals' efforts to best realize their goals, given their
resources.
What does it mean to says resources are scarce? - (ANSWER)Anything useful in
consumption or production that has alternative uses.
What is opportunity cost? - (ANSWER)Potential loss from a missed opportunity.
Passing up the next best choice.
What does "marginal" refer to? - (ANSWER)The examination of the costs and
benefits through a small change in the production of goods
What does efficiency refer to? - (ANSWER)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? - (ANSWER)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? - (ANSWER)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. - (ANSWER)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?
- (ANSWER)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? -
(ANSWER)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.
QUESTIONS With 100% Verified Solutions,
What is "economics"? - (ANSWER)A Map for decision making. Economics
analyzes the allocation of scarce resources.
What are some of the specific challenges faced by managers in healthcare? -
(ANSWER)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? -
(ANSWER)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? - (ANSWER)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? - (ANSWER)Demand for a good or service is
greater than the availability
What does it mean to say people are assumed to make choices rationally? -
(ANSWER)focuses on individuals' efforts to best realize their goals, given their
resources.
What does it mean to says resources are scarce? - (ANSWER)Anything useful in
consumption or production that has alternative uses.
What is opportunity cost? - (ANSWER)Potential loss from a missed opportunity.
Passing up the next best choice.
What does "marginal" refer to? - (ANSWER)The examination of the costs and
benefits through a small change in the production of goods
What does efficiency refer to? - (ANSWER)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? - (ANSWER)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? - (ANSWER)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. - (ANSWER)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?
- (ANSWER)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? -
(ANSWER)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.
