LSUS 710 | Health Economics, Markets & Cost Dynamics | 60 Exam Questions with Answers | Louisiana State University Shreveport

This document features 60 fully answered and expertly verified questions from Exam 1 of LSUS MHA 710 – Health Economics, for the 2025/2026 academic year at Louisiana State University Shreveport. The exam comprehensively covers foundational economic concepts as they apply to the U.S. healthcare system, highlighting real-world examples and market behaviors in health care delivery, pricing, and financing. Key topics include: Healthcare spending trends and the structure of hospital care as the largest expenditure Market mechanics, such as supply and demand shifts, price ceilings, and excise taxes Application of economic principles like opportunity cost, deadweight loss, positive and normative analysis, and elasticity Insights into wasteful healthcare spending, price discrimination, and insurance models, including self-insurance and the third-party payment system The impact of technological innovation, economies of scale, and government regulations (e.g., ACA reforms) Public health implications of externalities, asymmetric information, and monopoly conditions Real-world scenarios and policy-based examples—such as robotic surgery, drug pricing restrictions, and the influence of Adam Smith’s “invisible hand”—are used to illustrate theoretical models. The document also evaluates ACA outcomes, such as the removal of the individual mandate penalty and shifts in insurance coverage. Ideal for: MHA, MPH, and MBA students with a healthcare focus Courses in healthcare economics, public policy, or insurance systems Professionals preparing for board exams or financial planning roles in healthcare Keywords: healthcare economics, LSUS 710, hospital care spending, supply and demand, price ceiling, excise tax, opportunity cost, deadweight loss, positive analysis, elasticity, price discrimination, ACA, third-party payment, monopoly, asymmetric information, externalities, cost-benefit, economic efficiency, insurance models, healthcare markets, public vs private healthcare