HMGT 3311 BUNDLED EXAMS COMPLETE
STUDY GUIDE VERIFIED QUESTIONS AND
ANSWERS FULL SOLUTION GRADED A+
⩥ In US healthcare, what is the problem of "too much"?
Answer: - Healthcare expenditures ~$4.3 trillion
- ~18.3% of GDP ($1/ $5 is spent on healthcare)
In 1965, healthcare spend was only ~6% of GDP
⩥ "Not enough", side-by-side with "too much" signifies...
Answer: resource allocation issue
⩥ Economics deals with...
Answer: consequences of resource scarcity and making choices
⩥ What are 3 tasks of economics?
Define each task.
Answer: 1. Description—involves the identification, definition, and
measurement of phenomena
Statement of fact, without explanation or analysis
,2. Explanation—conducting a cause-and-effect analysis
Identifying the causes of the events
Uses models to explain
No judgement
3. Evaluation—involves judging or ranking alternative phenomena
according to some standard or relative position of alternatives
The standard or benchmark must have a level of general acceptance
⩥ What is economic variables?
Answer: ➖An economically relevant phenomenon whose value or
magnitude may vary
•Prices, costs, income, quantities, etc.
Can be measured along a scale, once appropriate units of
measurement have been chosen
•Cents, dollars per unit, # of patient visits, # of hospital beds, etc.
⩥ What is Graphic analysis?
Answer: purpose is to illustrate relations between economic variables
⩥ What is Models?
,Answer: — Help us to draw inferences about what happens when the
economic variables are changed
⩥ What is the relation between variables?
What are 2 types of relations?
Answer: Relations show how one variable changes with respect to
another variable
- Noncausal relations—one variable does not cause a change in another
variable
- Causal relations—when one economic variable changes, the value of a
second economic variable also changes as a result
⩥ When is the relation positive,negative, or unrelated?
Answer:
⩥ What does the slope of a relation show? How is the slope when the
relation is linear?
Answer: shows how sensitive a change in one variable is to a change in
another variable
Expressed as the magnitude or sensitivity of response
When the relation is linear, the slope remains constant at every point on
the line
, ⩥ What happens to variables when there is similar slopes but different
positions?
Answer: Position of relations: one line shows a greater quantity of visits
than the other for any given price.
⩥ What is non-linear relationship?
Answer: the magnitude of the response varies along the curve
It's not a straight-line relationship like a linear "curve"
⩥ What is a fixed cost?
Answer: a cost that does not change, no matter how much of a good is
produced
⩥ In business, as it increases production, what happens to the slope?
Answer: inclining or declining cost slopes
⩥ What is if...then analysis format?
Answer: ➖The "If" - Conditions or assumptions
The "Then" - Conclusions, implications or predictions
⩥ What is the Explanatory Economics?
Answer: A predication is made and then scenarios are tested against
actual data to see if the prediction can be validated
STUDY GUIDE VERIFIED QUESTIONS AND
ANSWERS FULL SOLUTION GRADED A+
⩥ In US healthcare, what is the problem of "too much"?
Answer: - Healthcare expenditures ~$4.3 trillion
- ~18.3% of GDP ($1/ $5 is spent on healthcare)
In 1965, healthcare spend was only ~6% of GDP
⩥ "Not enough", side-by-side with "too much" signifies...
Answer: resource allocation issue
⩥ Economics deals with...
Answer: consequences of resource scarcity and making choices
⩥ What are 3 tasks of economics?
Define each task.
Answer: 1. Description—involves the identification, definition, and
measurement of phenomena
Statement of fact, without explanation or analysis
,2. Explanation—conducting a cause-and-effect analysis
Identifying the causes of the events
Uses models to explain
No judgement
3. Evaluation—involves judging or ranking alternative phenomena
according to some standard or relative position of alternatives
The standard or benchmark must have a level of general acceptance
⩥ What is economic variables?
Answer: ➖An economically relevant phenomenon whose value or
magnitude may vary
•Prices, costs, income, quantities, etc.
Can be measured along a scale, once appropriate units of
measurement have been chosen
•Cents, dollars per unit, # of patient visits, # of hospital beds, etc.
⩥ What is Graphic analysis?
Answer: purpose is to illustrate relations between economic variables
⩥ What is Models?
,Answer: — Help us to draw inferences about what happens when the
economic variables are changed
⩥ What is the relation between variables?
What are 2 types of relations?
Answer: Relations show how one variable changes with respect to
another variable
- Noncausal relations—one variable does not cause a change in another
variable
- Causal relations—when one economic variable changes, the value of a
second economic variable also changes as a result
⩥ When is the relation positive,negative, or unrelated?
Answer:
⩥ What does the slope of a relation show? How is the slope when the
relation is linear?
Answer: shows how sensitive a change in one variable is to a change in
another variable
Expressed as the magnitude or sensitivity of response
When the relation is linear, the slope remains constant at every point on
the line
, ⩥ What happens to variables when there is similar slopes but different
positions?
Answer: Position of relations: one line shows a greater quantity of visits
than the other for any given price.
⩥ What is non-linear relationship?
Answer: the magnitude of the response varies along the curve
It's not a straight-line relationship like a linear "curve"
⩥ What is a fixed cost?
Answer: a cost that does not change, no matter how much of a good is
produced
⩥ In business, as it increases production, what happens to the slope?
Answer: inclining or declining cost slopes
⩥ What is if...then analysis format?
Answer: ➖The "If" - Conditions or assumptions
The "Then" - Conclusions, implications or predictions
⩥ What is the Explanatory Economics?
Answer: A predication is made and then scenarios are tested against
actual data to see if the prediction can be validated
