Page 1 of 110
HEALTH CARE FINANCE, ECONOMICS, AND POLICY FOR NURSES,
3RD EDITION (BETTY RAMBUR) — EXAM GUIDE AND CORRECT
ANSWERS LATEST EDITION 2026
Health Care Finance, Economics, and Policy for Nurses, 3rd Edition (Betty Rambur) —
Questions with Rationales
Textbook Chapter Structure
The 3rd Edition of Health Care Finance, Economics, and Policy for Nurses: A Foundational Guide
by Betty Rambur contains the following chapters:
• Chapter 1: How the Money Works: Nurses, Economics, Finance, and Reimbursement
• Chapter 2: A Story of Unintended Consequences: How Economic and Policy Solutions
Create New Challenges
• Chapter 3: Navigating the Health Care Landscape Shaped by the Patient Protection and
Affordable Care Act of 2010 and Subsequent Federal Legislation
• Chapter 4: Payment Reform: Improving Care Delivery by Changing Who Is Reimbursed,
How, and For What
• Chapter 5: How Health Care Markets Differ from Other Markets...and Why It Matters
• Chapter 6: Health Care Outcomes, Cost, Safety, and Value: The Critical Role of
Information in Health Care Markets, Decision-Making, and Payments
1|Page
,Page 2 of 110
• Chapter 7: Market Entry, Exit, and Antitrust Law — Why It Matters to Nurses
• Chapter 8: What Is Ethinomics?
• Chapter 9: Models to Guide Ethical Decision-Making
• Chapter 10: Governance and Organizational Type
• Chapter 11: Building Skills for Board Membership
• Chapter 12: Applying Health Economics to Improve Health Care Through Federal and
State Policy Formation
• Chapter 13: Lessons from the COVID-19 Pandemic and a Look to the Future
• Chapter 14: The Health Care Workforce: What Nurses Need to Know
• Chapter 15: Living and Leading in a Changing World
Chapter 1: How the Money Works: Nurses, Economics, Finance, and Reimbursement
Question 1: Which of the following best describes the historical relationship between nurses
and direct payment for their services in the early 20th century?
A. Nurses were always salaried employees of hospitals and never billed directly for their services
B. Nurses ran independent companies, families hired them directly, and hospital bills included a
separate line for nursing services
C. Nurses were prohibited by law from charging for their services
D. Nurses worked only as volunteers and were never compensated for their work
Correct Answer: B
Rationale: In the 1930s, both physicians and nurses ran their own independent companies, and
families would hire nurses and pay them directly for care. When hospitals began hiring nurses
on staff, every patient bill included a separate line for nursing services, demonstrating that
nurses possessed business knowledge and acumen about the revenue they generated.
2|Page
,Page 3 of 110
Question 2: Which of the following best defines health economics as it applies to nursing
practice?
A. The study of how financial resources are allocated and used to produce health and health
care services
B. The study of how to maximize hospital profits
C. The study of how to reduce nursing salaries
D. The study of how to increase the cost of health insurance
Correct Answer: A
Rationale: Health economics is the study of how financial resources are allocated and used to
produce health and health care services. It examines the production, distribution, and
consumption of health care goods and services, including the behaviors of individuals,
organizations, and governments.
Question 3: Which of the following best describes the concept of opportunity cost in health
care decision-making?
A. The monetary cost of a healthcare service
B. The value of the next best alternative that is forgone when a decision is made
C. The total cost of all healthcare services provided
D. The cost of health insurance premiums
Correct Answer: B
Rationale: Opportunity cost is the value of the next best alternative that is forgone when a
decision is made. In health care, choosing to allocate resources to one program or treatment
means forgoing the benefits that could have been achieved with those same resources in
another program or treatment.
3|Page
, Page 4 of 110
Question 4: Which of the following is a key characteristic of the U.S. health care financing
system?
A. A single-payer system funded entirely by the government
B. A multi-payer system with a mix of public and private financing sources
C. A system funded entirely by out-of-pocket payments from patients
D. A system funded entirely by employer contributions
Correct Answer: B
Rationale: The U.S. health care financing system is a multi-payer system with a mix of public and
private financing sources, including Medicare, Medicaid, private health insurance (both
employer-sponsored and individually purchased), and out-of-pocket payments.
Question 5: Which of the following best describes the difference between fee-for-service and
capitation payment models?
A. Fee-for-service pays providers for each service delivered; capitation pays a fixed amount per
patient regardless of services used
B. Fee-for-service pays a fixed amount per patient; capitation pays for each service delivered
C. Both models pay providers the same way
D. Fee-for-service is only used in Medicaid; capitation is only used in Medicare
Correct Answer: A
Rationale: Fee-for-service (FFS) pays providers for each service or procedure delivered, creating
incentives for volume. Capitation pays a fixed amount per patient per period regardless of the
number of services used, creating incentives for efficiency and prevention.
Question 6: Which of the following best describes the concept of moral hazard in health
insurance?
4|Page
HEALTH CARE FINANCE, ECONOMICS, AND POLICY FOR NURSES,
3RD EDITION (BETTY RAMBUR) — EXAM GUIDE AND CORRECT
ANSWERS LATEST EDITION 2026
Health Care Finance, Economics, and Policy for Nurses, 3rd Edition (Betty Rambur) —
Questions with Rationales
Textbook Chapter Structure
The 3rd Edition of Health Care Finance, Economics, and Policy for Nurses: A Foundational Guide
by Betty Rambur contains the following chapters:
• Chapter 1: How the Money Works: Nurses, Economics, Finance, and Reimbursement
• Chapter 2: A Story of Unintended Consequences: How Economic and Policy Solutions
Create New Challenges
• Chapter 3: Navigating the Health Care Landscape Shaped by the Patient Protection and
Affordable Care Act of 2010 and Subsequent Federal Legislation
• Chapter 4: Payment Reform: Improving Care Delivery by Changing Who Is Reimbursed,
How, and For What
• Chapter 5: How Health Care Markets Differ from Other Markets...and Why It Matters
• Chapter 6: Health Care Outcomes, Cost, Safety, and Value: The Critical Role of
Information in Health Care Markets, Decision-Making, and Payments
1|Page
,Page 2 of 110
• Chapter 7: Market Entry, Exit, and Antitrust Law — Why It Matters to Nurses
• Chapter 8: What Is Ethinomics?
• Chapter 9: Models to Guide Ethical Decision-Making
• Chapter 10: Governance and Organizational Type
• Chapter 11: Building Skills for Board Membership
• Chapter 12: Applying Health Economics to Improve Health Care Through Federal and
State Policy Formation
• Chapter 13: Lessons from the COVID-19 Pandemic and a Look to the Future
• Chapter 14: The Health Care Workforce: What Nurses Need to Know
• Chapter 15: Living and Leading in a Changing World
Chapter 1: How the Money Works: Nurses, Economics, Finance, and Reimbursement
Question 1: Which of the following best describes the historical relationship between nurses
and direct payment for their services in the early 20th century?
A. Nurses were always salaried employees of hospitals and never billed directly for their services
B. Nurses ran independent companies, families hired them directly, and hospital bills included a
separate line for nursing services
C. Nurses were prohibited by law from charging for their services
D. Nurses worked only as volunteers and were never compensated for their work
Correct Answer: B
Rationale: In the 1930s, both physicians and nurses ran their own independent companies, and
families would hire nurses and pay them directly for care. When hospitals began hiring nurses
on staff, every patient bill included a separate line for nursing services, demonstrating that
nurses possessed business knowledge and acumen about the revenue they generated.
2|Page
,Page 3 of 110
Question 2: Which of the following best defines health economics as it applies to nursing
practice?
A. The study of how financial resources are allocated and used to produce health and health
care services
B. The study of how to maximize hospital profits
C. The study of how to reduce nursing salaries
D. The study of how to increase the cost of health insurance
Correct Answer: A
Rationale: Health economics is the study of how financial resources are allocated and used to
produce health and health care services. It examines the production, distribution, and
consumption of health care goods and services, including the behaviors of individuals,
organizations, and governments.
Question 3: Which of the following best describes the concept of opportunity cost in health
care decision-making?
A. The monetary cost of a healthcare service
B. The value of the next best alternative that is forgone when a decision is made
C. The total cost of all healthcare services provided
D. The cost of health insurance premiums
Correct Answer: B
Rationale: Opportunity cost is the value of the next best alternative that is forgone when a
decision is made. In health care, choosing to allocate resources to one program or treatment
means forgoing the benefits that could have been achieved with those same resources in
another program or treatment.
3|Page
, Page 4 of 110
Question 4: Which of the following is a key characteristic of the U.S. health care financing
system?
A. A single-payer system funded entirely by the government
B. A multi-payer system with a mix of public and private financing sources
C. A system funded entirely by out-of-pocket payments from patients
D. A system funded entirely by employer contributions
Correct Answer: B
Rationale: The U.S. health care financing system is a multi-payer system with a mix of public and
private financing sources, including Medicare, Medicaid, private health insurance (both
employer-sponsored and individually purchased), and out-of-pocket payments.
Question 5: Which of the following best describes the difference between fee-for-service and
capitation payment models?
A. Fee-for-service pays providers for each service delivered; capitation pays a fixed amount per
patient regardless of services used
B. Fee-for-service pays a fixed amount per patient; capitation pays for each service delivered
C. Both models pay providers the same way
D. Fee-for-service is only used in Medicaid; capitation is only used in Medicare
Correct Answer: A
Rationale: Fee-for-service (FFS) pays providers for each service or procedure delivered, creating
incentives for volume. Capitation pays a fixed amount per patient per period regardless of the
number of services used, creating incentives for efficiency and prevention.
Question 6: Which of the following best describes the concept of moral hazard in health
insurance?
4|Page
