Health Economics (ECON 452) | 20 Solved Exam Questions on Hospitals, Physicians, Payment Systems & Labor Markets – 2025/2026

This document includes 20 fully solved multiple-choice questions from Week 5 of the Health Economics course (ECON 452), academic year 2025/2026. The content focuses on core healthcare labor and institutional economics, examining the dynamics of hospital behavior, physician specialization, monopsony power, pricing models, and health labor market trends. Topics also address healthcare market structures, prospective payment systems, hospital competition, cost-shifting practices, and integration models such as horizontal integration. Additional themes covered include physician-induced demand, differences in gender-based demand for OB/GYN specialists, the role of self-referral, cost-shifting, and economic principles like economies of scale and price discrimination. The document also touches on historic reforms such as the Flexner Report and the implications of immigration policy on healthcare delivery in underserved areas. This set is ideal for students preparing for exams or seeking a deeper understanding of applied microeconomics within health systems. It is particularly suited for those studying: Health Economics Public Health Policy Healthcare Administration Labor Economics in Health Medical Education Economics Applicable to students enrolled in: Economics (undergraduate or graduate) Public Health programs Health Systems and Services Research Pre-Med with a focus on health systems and policy Hospital Administration and Management Keywords: hospital economics, physician distribution, monopsony, labor markets, price discrimination, physician-induced demand, prospective payment, Flexner Report, self-referral, horizontal integration, outpatient trends, Medicare payments, healthcare costs, cost shifting, medical education