,Getzen’stHealthtEconomicstandtFinancing,tFifthtEdition
TesttBank
File:tc01;tChaptert1tChoices:tMoney,tMedicine,tandtHealth
I.1.AtTrue/False
1) Overtthetpastt100tyears,touttoftpockettexpenditurestforthealthtcaretservicestbytindivi
duals
havetdecreasedtfromtaboutt50%ttotlesstthant10%.tAnswer:t
False.
Response:t81%tpersonaltexpenditurestint1929;t11%tpersonaltexpenditurestint2012.tReference:
t1.2tFlowtoftFunds/SourcestoftFinancing.
Level:tEasy
2) Thirdtpartytpayerstaccounttfort60%toftallthealthtcaretexpenditurestint2012.tAnswe
r:tFalse.
Response:t89%toftallthealthtcaretexpenditurestint2012taretthroughtthird-partytfinancing.
Reference:t1.2tFlowtoftFunds/SourcestoftFinancing.tLeve
l:tEasy
3) Rankingteveryonetbytthetamounttspenttontmedicaltcare,t70tpercenttoftthettotalt(all
expenditurestfortalltpeople)tistaccountedtfortbytthettopt10tpercenttoftpatients.
Thistphenomenon
istcalledtcosttshifting.tAnswer:t
False.
Response:tThetstatisticstaretcorrect;tthetexplanationtistincorrect.tThetsituationtdescribe
stonlytthe
facttthattmedicaltexpensestaretincurredtunevenlytacrosstalltoftthetpopulation,tandtdoestnot
specifytwhotpaystthatt70tpercenttsharetoftthetnation’sthealthcaretbill.tThettermtcosttsh
ifting,
however,tincorporatestthetcomparisontoftwhotincurredtthetexpensestversustwhotpaidtthetb
ill.
Reference:t1.1tWhattIstEconomics?/FinancingtHealthtCaretANDt1.2tFlowtoftFunds/Sourcesto
f
Financing.tLeve
l:tMediumtI.1.B
4) NottonlytistthetsharetoftthetGDPtgoingttothealthtcarethighertint2012tthantint1929,tth
etwages
ofthealthtcaretworkersthavetrisentmoretrapidlytthantfortotherttypestoftlabor.tAnswer:tTr
ue.
Chaptert1
Copyrightt©t2013tJohntWileyt&tSons,tInc.t1
,Getzen’stHealthtEconomicstandtFinancing,tFifthtEdition
TesttBank
Reference:t1.2tFlowtoftFunds/tHealthtCaretProviders:tThetUsestoftFunds.tLevel:t
Easy
5) ThetFlowtoftFundstideatemphasizestthatttotaltdollarstspenttbytindividuals,tgover
nmenttand
othertthirdtpartytpayerstforthealthtcaretmusttequalttotaltincometearnedtbythealthtcaretprovi
ders,
administratorstandtotherthealthtcaretworkers.tAnswer:tT
rue.
Reference:t1.2tFlowtoftFunds.tLev
el:tEasy
I.1.C
I.1.D
6) Thethospitaltopenstatcancertcentertintantadjacenttabandonedtbuilding.tSincetittwastan
abandonedtbuilding,ttheretaretnotopportunitytcoststoftthistdecision.tAnswer:tF
alse.
Response:tThetbuilding,tastwelltastalltothertresourcestthattweretinvestedtintotthetcancertce
nter,
couldthavetbeentusedtintantalternatetway;ttotopentatwomen’sthealthtcenter,tfortinstance.tThe
foregonetbenefitstfromtopeningtatwomen’sthealthtcentertwouldtbetthetopportunitytcosttoft
this
decision.
Reference:t1.3tEconomicstPrinciplestastConceptualtTools/OpportunitytCosttLev
el:tMedium
I.1.E
7) SocioeconomictdifferencestintmortalitytfoundtintthetU.S.taretmosttlikelytattr
ibutablettotlack
oftuniversalthealthtinsurancetcoverage.tAns
wer:tFalse.
Response:tSocioeconomictdifferencestintmortalitytaretnoticedtintothertOECDtcountriesta
stwell
astintpoorertcountriestliketGhanatandtBangladesh.tRefer
ence:t1.4tHealthtDisparities.
Level:tMediumtI.
1.F
I.1.G
I.1.H
8) Whentatdrugtcompanytadvertisestittwilltprovidetatprescriptiontdrugtattnotchargettotcer
tain
individualstwhotcannottaffordtatdoctortprescribedtdrug,tcoststaretmosttlikelytbeingtshifted
taway
fromtindividualstwhotaretpayingthightpricesttotthosetwhotaretpayingtnothing.tAnswer:tFal
se.
Response:tCoststaretbeingtshiftedttotindividualstwhotaretpayingthightpricestfromtthosetwhota
re
payingtnothing.
Chaptert1
Copyrightt©t2013tJohntWileyt&tSons,tInc.t2
, Getzen’stHealthtEconomicstandtFinancing,tFifthtEdition
TesttBank
Reference:t1.1tWhattIstEconomics?/FinancingtHealthtCare.tLe
vel:tEasy
I.1.I
I.1.J
I.1.K
9) Athospitaltsystemtistrewardedtwiththighertprofitstintthetshortttermtwhentittimplem
ents
electronicthealthtrecordstwhichtincreasetthettimelinesstoftphysiciantandtpatienttcommunica
tion.
Answer:tFalse.
Response:tWhiletittistpossibletthattathospitaltmighttrealizethighertpatienttrevenuestint
thetlong
termtiftittincreasestitstqualitytoftservicetintthetareatoftcommunication,tittistunlikelyttha
ttan
investmenttintelectronicthealthtrecordstwouldtresulttintatshortttermtreturn.
Further,tthetideatofta
hospitaltrealizingtat“profit”tistquestionable.tMostthospitalstaret“nottfortprofit”tinstitu
tions,
whichtbringstintotquestiontthetmaximizingtgoaltoftthethospital.tThisthighlightstthetdiffere
nce
betweenthospitalstandtthetneoclassicaltprofit-
maximizingtfirms.tReference:t1.1tWhattIstEconomics?/FinancingtHealthtCare.
Level:tMediumtI.
1.L
I.1.M
I.1.N
10) Astaccessttothigh-
qualitytcarethastbeentsteadilytimprovingtacrosstthetworld,tinequalitiestin
healthtcantstilltbetfoundtonlytintrelativelytpoortcountries.tAnswer:tFa
lse.
Reference:t1.4tHealthtDisparitiestLeve
l:tEasy
I.1.OtMultipletChoice
11) Intwhichtoftthetfollowingtexamplestdoestthetfundamentalttheoremtoftexchangetnottapply?
a) Youtpaytyourtoptometristt$500tfortatnewtpairtofteyeglasses.
b) Youtdonatetyourtold,tusedteyeglassesttotthetLionstClub,tatcharitabletorgan
izationtwhich
recyclestandtdistributestthetglassesttotneedytpeople.
c) Youtpaytatfertilitytspecialistt$10,000ttotperformtIntVitrotFertilizationtproc
eduretwhichtdoes
nottresulttintpregnancy.
d) Youtpaytatfertilitytspecialistt$10,000ttotperformtIntVitrotFertilizationtproc
eduretwhich
resultstintpregnancy.
e) Unknownttotyou,tyourtneighbortisttappingtintotyourtcabletTVtservicetandtsharingtyour
service.
Answer:te
Chaptert1
Copyrightt©t2013tJohntWileyt&tSons,tInc.
TesttBank
File:tc01;tChaptert1tChoices:tMoney,tMedicine,tandtHealth
I.1.AtTrue/False
1) Overtthetpastt100tyears,touttoftpockettexpenditurestforthealthtcaretservicestbytindivi
duals
havetdecreasedtfromtaboutt50%ttotlesstthant10%.tAnswer:t
False.
Response:t81%tpersonaltexpenditurestint1929;t11%tpersonaltexpenditurestint2012.tReference:
t1.2tFlowtoftFunds/SourcestoftFinancing.
Level:tEasy
2) Thirdtpartytpayerstaccounttfort60%toftallthealthtcaretexpenditurestint2012.tAnswe
r:tFalse.
Response:t89%toftallthealthtcaretexpenditurestint2012taretthroughtthird-partytfinancing.
Reference:t1.2tFlowtoftFunds/SourcestoftFinancing.tLeve
l:tEasy
3) Rankingteveryonetbytthetamounttspenttontmedicaltcare,t70tpercenttoftthettotalt(all
expenditurestfortalltpeople)tistaccountedtfortbytthettopt10tpercenttoftpatients.
Thistphenomenon
istcalledtcosttshifting.tAnswer:t
False.
Response:tThetstatisticstaretcorrect;tthetexplanationtistincorrect.tThetsituationtdescribe
stonlytthe
facttthattmedicaltexpensestaretincurredtunevenlytacrosstalltoftthetpopulation,tandtdoestnot
specifytwhotpaystthatt70tpercenttsharetoftthetnation’sthealthcaretbill.tThettermtcosttsh
ifting,
however,tincorporatestthetcomparisontoftwhotincurredtthetexpensestversustwhotpaidtthetb
ill.
Reference:t1.1tWhattIstEconomics?/FinancingtHealthtCaretANDt1.2tFlowtoftFunds/Sourcesto
f
Financing.tLeve
l:tMediumtI.1.B
4) NottonlytistthetsharetoftthetGDPtgoingttothealthtcarethighertint2012tthantint1929,tth
etwages
ofthealthtcaretworkersthavetrisentmoretrapidlytthantfortotherttypestoftlabor.tAnswer:tTr
ue.
Chaptert1
Copyrightt©t2013tJohntWileyt&tSons,tInc.t1
,Getzen’stHealthtEconomicstandtFinancing,tFifthtEdition
TesttBank
Reference:t1.2tFlowtoftFunds/tHealthtCaretProviders:tThetUsestoftFunds.tLevel:t
Easy
5) ThetFlowtoftFundstideatemphasizestthatttotaltdollarstspenttbytindividuals,tgover
nmenttand
othertthirdtpartytpayerstforthealthtcaretmusttequalttotaltincometearnedtbythealthtcaretprovi
ders,
administratorstandtotherthealthtcaretworkers.tAnswer:tT
rue.
Reference:t1.2tFlowtoftFunds.tLev
el:tEasy
I.1.C
I.1.D
6) Thethospitaltopenstatcancertcentertintantadjacenttabandonedtbuilding.tSincetittwastan
abandonedtbuilding,ttheretaretnotopportunitytcoststoftthistdecision.tAnswer:tF
alse.
Response:tThetbuilding,tastwelltastalltothertresourcestthattweretinvestedtintotthetcancertce
nter,
couldthavetbeentusedtintantalternatetway;ttotopentatwomen’sthealthtcenter,tfortinstance.tThe
foregonetbenefitstfromtopeningtatwomen’sthealthtcentertwouldtbetthetopportunitytcosttoft
this
decision.
Reference:t1.3tEconomicstPrinciplestastConceptualtTools/OpportunitytCosttLev
el:tMedium
I.1.E
7) SocioeconomictdifferencestintmortalitytfoundtintthetU.S.taretmosttlikelytattr
ibutablettotlack
oftuniversalthealthtinsurancetcoverage.tAns
wer:tFalse.
Response:tSocioeconomictdifferencestintmortalitytaretnoticedtintothertOECDtcountriesta
stwell
astintpoorertcountriestliketGhanatandtBangladesh.tRefer
ence:t1.4tHealthtDisparities.
Level:tMediumtI.
1.F
I.1.G
I.1.H
8) Whentatdrugtcompanytadvertisestittwilltprovidetatprescriptiontdrugtattnotchargettotcer
tain
individualstwhotcannottaffordtatdoctortprescribedtdrug,tcoststaretmosttlikelytbeingtshifted
taway
fromtindividualstwhotaretpayingthightpricesttotthosetwhotaretpayingtnothing.tAnswer:tFal
se.
Response:tCoststaretbeingtshiftedttotindividualstwhotaretpayingthightpricestfromtthosetwhota
re
payingtnothing.
Chaptert1
Copyrightt©t2013tJohntWileyt&tSons,tInc.t2
, Getzen’stHealthtEconomicstandtFinancing,tFifthtEdition
TesttBank
Reference:t1.1tWhattIstEconomics?/FinancingtHealthtCare.tLe
vel:tEasy
I.1.I
I.1.J
I.1.K
9) Athospitaltsystemtistrewardedtwiththighertprofitstintthetshortttermtwhentittimplem
ents
electronicthealthtrecordstwhichtincreasetthettimelinesstoftphysiciantandtpatienttcommunica
tion.
Answer:tFalse.
Response:tWhiletittistpossibletthattathospitaltmighttrealizethighertpatienttrevenuestint
thetlong
termtiftittincreasestitstqualitytoftservicetintthetareatoftcommunication,tittistunlikelyttha
ttan
investmenttintelectronicthealthtrecordstwouldtresulttintatshortttermtreturn.
Further,tthetideatofta
hospitaltrealizingtat“profit”tistquestionable.tMostthospitalstaret“nottfortprofit”tinstitu
tions,
whichtbringstintotquestiontthetmaximizingtgoaltoftthethospital.tThisthighlightstthetdiffere
nce
betweenthospitalstandtthetneoclassicaltprofit-
maximizingtfirms.tReference:t1.1tWhattIstEconomics?/FinancingtHealthtCare.
Level:tMediumtI.
1.L
I.1.M
I.1.N
10) Astaccessttothigh-
qualitytcarethastbeentsteadilytimprovingtacrosstthetworld,tinequalitiestin
healthtcantstilltbetfoundtonlytintrelativelytpoortcountries.tAnswer:tFa
lse.
Reference:t1.4tHealthtDisparitiestLeve
l:tEasy
I.1.OtMultipletChoice
11) Intwhichtoftthetfollowingtexamplestdoestthetfundamentalttheoremtoftexchangetnottapply?
a) Youtpaytyourtoptometristt$500tfortatnewtpairtofteyeglasses.
b) Youtdonatetyourtold,tusedteyeglassesttotthetLionstClub,tatcharitabletorgan
izationtwhich
recyclestandtdistributestthetglassesttotneedytpeople.
c) Youtpaytatfertilitytspecialistt$10,000ttotperformtIntVitrotFertilizationtproc
eduretwhichtdoes
nottresulttintpregnancy.
d) Youtpaytatfertilitytspecialistt$10,000ttotperformtIntVitrotFertilizationtproc
eduretwhich
resultstintpregnancy.
e) Unknownttotyou,tyourtneighbortisttappingtintotyourtcabletTVtservicetandtsharingtyour
service.
Answer:te
Chaptert1
Copyrightt©t2013tJohntWileyt&tSons,tInc.
