Health Policy & Management (HPM101) – Chapter 2 Key Terms (12 Questions) | GDP, Price Transparency, ACOs, Market Failures

This document contains 12 carefully selected and verified exam questions with correct answers from Chapter 2 of the Health Policy and Management (HPM101) course, tailored for the 2025/2026 academic year. It focuses on essential economic and healthcare delivery concepts, offering clear definitions for terms such as gross domestic product (GDP), price discrimination, third-party payers, accountable care organizations (ACOs), and dead weight loss. Students will find this resource particularly helpful in understanding how healthcare financing and economic principles intersect with service delivery. The document introduces key micro- and macroeconomic terms relevant to health systems, including market equilibrium, disease incidence, correlation, and the importance of price transparency in healthcare decision-making. Each definition is succinct, accurate, and structured to reinforce comprehension and retention for test preparation. This material is ideal for students in Public Health, Health Administration, Health Economics, Policy Studies, Pre-Med, Medical Sociology, and Nursing programs. It also supports graduate-level learners in MPH, MHA, and health policy tracks seeking to master the vocabulary and frameworks foundational to analyzing the efficiency and effectiveness of healthcare systems. Keywords: premium, GDP, gross domestic product, third-party payers, primary care, preventive care, price transparency, price discrimination, dead weight loss, ACO, accountable care organization, disease incidence, equilibrium, correlation, health economics, healthcare market, policy analysis, resource allocation