MHA 710 - Healthcare Economics - Exam
3 Questions and Answers Latest version
Top Rated
In order to be a successful price discriminator, a provider
must have a degree of market power (depicted by a
downward-sloping demand curve) and meet what other
condition(s)?
a. Customers cannot know that different prices are being
charged.
b. Markets must be segmentable, identifying differences in
ability to pay.
c. Demand for services must be relatively price elastic.
d. Profitable service expansion opportunities must be
limited.
e. The provider must have excess capacity to accommodate
the extra business.
b. Markets must be segmentable, identifying differences in ability
to pay.
Legislation considered by Congress to restrict legal
immigration would:
a. surprise many policymakers because Congress finds it
difficult to agree on much of anything regarding immigration.
b. improve employment prospects for native-born
Americans.
c. have little effect on medical markets, as so few physicians
practicing medicine in the United States are foreigners.
d. raise the costs of operating in many of the nation's rural
and inner-city hospitals.
,e. allow more Americans trained abroad to compete for
openings in United States' residency programs.
d. raise the costs of operating in many of the nation's rural and
inner-city hospitals.
Physicians who own their own diagnostic testing facilities
tend to order more tests, charge higher fees for them, and
have higher total bills to patients. This practice of self-
referral is an example of:
a. cognitive dissonance.
b. physician-induced demand.
c. moral hazard.
d. adverse selection.
e. res ipsa loquitur.
b. physician-induced demand.
Which of the following statements is true concerning the
trend in community hospital care between inpatient and
outpatient services since the mid-1980s?
a. Both inpatient and outpatient services have been
declining.
b. There has been no noticeable trend in either inpatient or
outpatient services.
c. Both inpatient and outpatient services have been growing.
d. Outpatient services have been growing, while inpatient
services have been declining.
e. Outpatient services have been declining, while inpatient
services have been growing.
d. Outpatient services have been growing, while inpatient services
have been declining.
The amount that Medicare pays a hospital for treating a
Medicare patient is determined:
a. at the point when the diagnosis is made.
b. at the time of admission to the hospital.
c. before the patient sees a physician.
,d. after the hospital bill is reviewed by Medicare auditors.
e. after medical services are provided.
a. at the point when the diagnosis is made.
Compared to the not-for-profit organizational form, the for-
profit environment
a. allows for the transfer of assets.
b. lacks a profit motive.
c. gives shareholders higher returns on their investment
d. provides patients with higher quality of care.
e. does not provide charity care.
a. allows for the transfer of assets.
What is the most significant cost of attending medical
school?
a. Books and incidentals
b. Room and board
c. Tuition and fees
d. The income foregone
d. The income foregone
Using the physician-control model to explain hospital
behavior leads to which of the following conclusions?
a. Other medical inputs tend to be overused to maximize
physicians' productivity.
b. All investment decisions will be based on optimal resource
use.
c. The use of operating rooms will be maximized with little
excess capacity.
d. Physicians will strive to use the nursing staff efficiently.
a. Other medical inputs tend to be overused to maximize
physicians' productivity.
Economies of scale exist when:
a. long-run average costs decline as output increases.
b. long-run average costs increase as output increases.
c. long-run average costs are constant.
, d. short-run average costs decline.
e. short-run average costs increase.
a. long-run average costs decline as output increases.
Which of the following statements about the distribution of
physicians among specialties is true in the United States?
a. There are twice as many generalists as there are
specialists.
b. The majority of physicians specialize in general/family
practice.
c. There are twice as many specialists as there are
generalists.
d. The specialty distribution in the United States is similar to
that of the rest of the world.
c. There are twice as many specialists as there are generalists.
Starting salaries for female obstetricians/gynecologists are
higher than those of male obstetricians/gynecologists . What
is the best explanation for this?
a. There are more males in obstetrics/gynecology residency
programs than females.
b. The demand for female obstetricians/gynecologists is
greater than the demand for male
obstetricians/gynecologists .
c. The demand for female obstetricians/gynecologists is less
than the demand for male obstetricians/gynecologists .
d. Female obstetricians/gynecologists have more human
capital than male obstetricians/gynecologists .
b. The demand for female obstetricians/gynecologists is greater
than the demand for male obstetricians/gynecologists .
The rate of return on an investment in medical education:
a. will increase with an increase in the availability of student
loans.
b. is inversely related to the number of years in the
profession.
3 Questions and Answers Latest version
Top Rated
In order to be a successful price discriminator, a provider
must have a degree of market power (depicted by a
downward-sloping demand curve) and meet what other
condition(s)?
a. Customers cannot know that different prices are being
charged.
b. Markets must be segmentable, identifying differences in
ability to pay.
c. Demand for services must be relatively price elastic.
d. Profitable service expansion opportunities must be
limited.
e. The provider must have excess capacity to accommodate
the extra business.
b. Markets must be segmentable, identifying differences in ability
to pay.
Legislation considered by Congress to restrict legal
immigration would:
a. surprise many policymakers because Congress finds it
difficult to agree on much of anything regarding immigration.
b. improve employment prospects for native-born
Americans.
c. have little effect on medical markets, as so few physicians
practicing medicine in the United States are foreigners.
d. raise the costs of operating in many of the nation's rural
and inner-city hospitals.
,e. allow more Americans trained abroad to compete for
openings in United States' residency programs.
d. raise the costs of operating in many of the nation's rural and
inner-city hospitals.
Physicians who own their own diagnostic testing facilities
tend to order more tests, charge higher fees for them, and
have higher total bills to patients. This practice of self-
referral is an example of:
a. cognitive dissonance.
b. physician-induced demand.
c. moral hazard.
d. adverse selection.
e. res ipsa loquitur.
b. physician-induced demand.
Which of the following statements is true concerning the
trend in community hospital care between inpatient and
outpatient services since the mid-1980s?
a. Both inpatient and outpatient services have been
declining.
b. There has been no noticeable trend in either inpatient or
outpatient services.
c. Both inpatient and outpatient services have been growing.
d. Outpatient services have been growing, while inpatient
services have been declining.
e. Outpatient services have been declining, while inpatient
services have been growing.
d. Outpatient services have been growing, while inpatient services
have been declining.
The amount that Medicare pays a hospital for treating a
Medicare patient is determined:
a. at the point when the diagnosis is made.
b. at the time of admission to the hospital.
c. before the patient sees a physician.
,d. after the hospital bill is reviewed by Medicare auditors.
e. after medical services are provided.
a. at the point when the diagnosis is made.
Compared to the not-for-profit organizational form, the for-
profit environment
a. allows for the transfer of assets.
b. lacks a profit motive.
c. gives shareholders higher returns on their investment
d. provides patients with higher quality of care.
e. does not provide charity care.
a. allows for the transfer of assets.
What is the most significant cost of attending medical
school?
a. Books and incidentals
b. Room and board
c. Tuition and fees
d. The income foregone
d. The income foregone
Using the physician-control model to explain hospital
behavior leads to which of the following conclusions?
a. Other medical inputs tend to be overused to maximize
physicians' productivity.
b. All investment decisions will be based on optimal resource
use.
c. The use of operating rooms will be maximized with little
excess capacity.
d. Physicians will strive to use the nursing staff efficiently.
a. Other medical inputs tend to be overused to maximize
physicians' productivity.
Economies of scale exist when:
a. long-run average costs decline as output increases.
b. long-run average costs increase as output increases.
c. long-run average costs are constant.
, d. short-run average costs decline.
e. short-run average costs increase.
a. long-run average costs decline as output increases.
Which of the following statements about the distribution of
physicians among specialties is true in the United States?
a. There are twice as many generalists as there are
specialists.
b. The majority of physicians specialize in general/family
practice.
c. There are twice as many specialists as there are
generalists.
d. The specialty distribution in the United States is similar to
that of the rest of the world.
c. There are twice as many specialists as there are generalists.
Starting salaries for female obstetricians/gynecologists are
higher than those of male obstetricians/gynecologists . What
is the best explanation for this?
a. There are more males in obstetrics/gynecology residency
programs than females.
b. The demand for female obstetricians/gynecologists is
greater than the demand for male
obstetricians/gynecologists .
c. The demand for female obstetricians/gynecologists is less
than the demand for male obstetricians/gynecologists .
d. Female obstetricians/gynecologists have more human
capital than male obstetricians/gynecologists .
b. The demand for female obstetricians/gynecologists is greater
than the demand for male obstetricians/gynecologists .
The rate of return on an investment in medical education:
a. will increase with an increase in the availability of student
loans.
b. is inversely related to the number of years in the
profession.
