LSUS MHA 710 ECONOMICS EXAM 1
Which of the following represents the largest category of health care spending in the
United States? - Answers- Hospital Care
The direct effect of a shortage of hospital beds in a hospital services market is: -
Answers- Upward pressure on the price of a hospital stay.
All of the following will cause a shift in the medical care supply curve, except: -
Answers- A change in the percentage of the population with health insurance.
Assuming providers will accommodate patient desires, what effect would a binding price
ceiling have on the health care market? - Answers- Price will decrease to adhere to the
price ceiling & quantity will increase.
Suppose the U.S. Food & Drug Administration restricts the amount of prescription
opiates produced & sold in the U.S. market. What is the likely effect on the market for
drugs used to control chronic pain the United States? - Answers- The price of
prescription opiates will increase & the quantity consumed will decrease.
The following graph depicts the market for CT scanners in the United States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per machine. If
the government places a $100,000 excise tax on each new scanner sold, the new
equilibrium price will be: - Answers- less than $1.30 million.
Suppose robotic technology improves the results of abdominal surgery—less time to
perform the surgery, faster recovery times, and fewer mistakes. What is the impact on
the market for abdominal surgery using this new technology? - Answers- Demand for
robot-assisted surgery will increase, & prices will rise.
If a hospital is experiencing economies of scale: - Answers- Its average cost curve is
negatively sloped as output increases.
Which of the following does NOT contribute to wasteful spending in medical care? -
Answers- Price transparency.
Which of the following statements is based on positive analysis? - Answers- High
health care prices are one of the primary reasons that the United States spends more
on medical care than other countries.
Which of the following is NOT considered to be a factor in the recent slowing of health
care spending? - Answers- Growing U.S. gross domestic product (GDP).
If two women receive the same hip replacement procedure at a hospital, but are
charged differently, it is an example of: - Answers- Price discrimination.
Which of the following represents the largest category of health care spending in the
United States? - Answers- Hospital Care
The direct effect of a shortage of hospital beds in a hospital services market is: -
Answers- Upward pressure on the price of a hospital stay.
All of the following will cause a shift in the medical care supply curve, except: -
Answers- A change in the percentage of the population with health insurance.
Assuming providers will accommodate patient desires, what effect would a binding price
ceiling have on the health care market? - Answers- Price will decrease to adhere to the
price ceiling & quantity will increase.
Suppose the U.S. Food & Drug Administration restricts the amount of prescription
opiates produced & sold in the U.S. market. What is the likely effect on the market for
drugs used to control chronic pain the United States? - Answers- The price of
prescription opiates will increase & the quantity consumed will decrease.
The following graph depicts the market for CT scanners in the United States:
Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per machine. If
the government places a $100,000 excise tax on each new scanner sold, the new
equilibrium price will be: - Answers- less than $1.30 million.
Suppose robotic technology improves the results of abdominal surgery—less time to
perform the surgery, faster recovery times, and fewer mistakes. What is the impact on
the market for abdominal surgery using this new technology? - Answers- Demand for
robot-assisted surgery will increase, & prices will rise.
If a hospital is experiencing economies of scale: - Answers- Its average cost curve is
negatively sloped as output increases.
Which of the following does NOT contribute to wasteful spending in medical care? -
Answers- Price transparency.
Which of the following statements is based on positive analysis? - Answers- High
health care prices are one of the primary reasons that the United States spends more
on medical care than other countries.
Which of the following is NOT considered to be a factor in the recent slowing of health
care spending? - Answers- Growing U.S. gross domestic product (GDP).
If two women receive the same hip replacement procedure at a hospital, but are
charged differently, it is an example of: - Answers- Price discrimination.
