MHA 710 EXAM 3 2026 PRACTICE QUESTIONS
AND ANSWERS DETAILED REVIEW
◉ The tax fully dedicated to provide support for Medicare Part A is:
Answer: A 2.9 percent payroll tax paid by all workers, regardless of their
age.
◉ Several reform options have been discussed by Congress to solve
some of the structural problems that plague the program. Which of the
following options has received little support? Answer: Limit the
coverage for end-of-life care, the most expensive single item in
Medicare, to include only essential palliative care.
◉ Part B pays what percentage of the allowable fee set by Medicare?
Answer: 80 percent.
◉ Which of the following statements is true concerning the trend in
community hospital care between inpatient & outpatient services since
the mid-1980s? Answer: Outpatient services have been growing, while
inpatient services have been declining.
◉ On average, biopharmaceutical companies spend approximately what
percentage of their sales revenue on research & development? Answer:
5-10 percent.
, ◉ In 2019, Medicare covered approximately how many Americans?
Answer: 60 milllion.
◉ What was the main effect of the agreement on Trade-Related Aspects
of Intellectual Property Rights (TRIPS) on United States' domestic
policy? Answer: It extended the life of patents from 17 years from the
date of grant to 20 years from the date of application.
◉ Suppose the market for nursing services in a local community is so
dominated by a single community hospital that, for all practical
purposes, it is considered a monopsony. Using the diagram below,
answer the question.
If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage & level of employment
be? Answer: W1 & E1.
◉ In order to be a successful price discriminator, a provider must have a
degree of market power (depicted by a downward-sloping demand
curve) & meet what other condition(s)? Answer: Markets must be
segmentable, identifying differences in ability to pay.
◉ The merger of 2 community hospitals located in the same geographic
market is called: Answer: Horizontal integration.
AND ANSWERS DETAILED REVIEW
◉ The tax fully dedicated to provide support for Medicare Part A is:
Answer: A 2.9 percent payroll tax paid by all workers, regardless of their
age.
◉ Several reform options have been discussed by Congress to solve
some of the structural problems that plague the program. Which of the
following options has received little support? Answer: Limit the
coverage for end-of-life care, the most expensive single item in
Medicare, to include only essential palliative care.
◉ Part B pays what percentage of the allowable fee set by Medicare?
Answer: 80 percent.
◉ Which of the following statements is true concerning the trend in
community hospital care between inpatient & outpatient services since
the mid-1980s? Answer: Outpatient services have been growing, while
inpatient services have been declining.
◉ On average, biopharmaceutical companies spend approximately what
percentage of their sales revenue on research & development? Answer:
5-10 percent.
, ◉ In 2019, Medicare covered approximately how many Americans?
Answer: 60 milllion.
◉ What was the main effect of the agreement on Trade-Related Aspects
of Intellectual Property Rights (TRIPS) on United States' domestic
policy? Answer: It extended the life of patents from 17 years from the
date of grant to 20 years from the date of application.
◉ Suppose the market for nursing services in a local community is so
dominated by a single community hospital that, for all practical
purposes, it is considered a monopsony. Using the diagram below,
answer the question.
If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage & level of employment
be? Answer: W1 & E1.
◉ In order to be a successful price discriminator, a provider must have a
degree of market power (depicted by a downward-sloping demand
curve) & meet what other condition(s)? Answer: Markets must be
segmentable, identifying differences in ability to pay.
◉ The merger of 2 community hospitals located in the same geographic
market is called: Answer: Horizontal integration.
