MHA 710 Exam 1 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
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
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
Questions with 100% Correct Answers |
Latest Update
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
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
