MHA 710 MODULE 1 WITH RATIONALIZED
ANSWERS YEAR 2024/2025
What is "economics"? - verified answers-A Map for decision
making. Economics analyzes the allocation of scarce
resources.
What are some of the specific challenges faced by managers in
healthcare? - verified answers-1. The central roles of risk and
uncertainty
2. The complexities created by insurance
3. The perils produced by information asymmetries
4. The problems posed by not-for-profit organizations
5. The rapid and confusing course of technical and institutional
change
What does asymmetric information mean? Can you give an
example? - verified answers-When one party in a transaction
has less information than the other party. For example,
physicians and other healthcare providers usually understand
patients' medical options better than patients do. Unaware of
their choices, patients may accept recommendations for
therapies that are not cost-effective or, recognizing their
vulnerability to physicians' self-serving advice, may resist
recommendations made in their best interest.
What is adverse selection? - verified answers-A situation that
occurs when buyers have better information than sellers. For
example, high-risk consumers are willing to pay more for
insurance than low-risk consumers are. (Organizations that
have difficulty distinguishing high-risk from low-risk consumers
are unlikely to be profitable.)
, What is the problem of scarcity? - verified answers-Demand for
a good or service is greater than the availability
What does it mean to say people are assumed to make choices
rationally? - verified answers-focuses on individuals' efforts to
best realize their goals, given their resources.
What does it mean to says resources are scarce? - verified
answers-Anything useful in consumption or production that has
alternative uses.
What is opportunity cost? - verified answers-Potential loss from
a missed opportunity. Passing up the next best choice.
What does "marginal" refer to? - verified answers-The
examination of the costs and benefits through a small change
in the production of goods
What does efficiency refer to? - verified answers-No way to
rearrange production of goods in a way that makes one person
more better off without making somebody else worse off. How
well an economy uses scare resources to meet the
needs/wants of their customers
How do positive economic statements differ from normative
economic statements? - verified answers-Positive economics is
objective while normative economics is subjective. Facts/ What
is vs What should be
How can economics be applied to the health sector? - verified
answers-Describe, Explain, Evaluate, Plan
As we progress through the chapters, think about the special
characteristics that apply to the health sector that might limit the
applicability of traditional economic models. - verified answers-
Social determinants of health, few insurance companies that
providers rely on, not a perfectly competitive market
ANSWERS YEAR 2024/2025
What is "economics"? - verified answers-A Map for decision
making. Economics analyzes the allocation of scarce
resources.
What are some of the specific challenges faced by managers in
healthcare? - verified answers-1. The central roles of risk and
uncertainty
2. The complexities created by insurance
3. The perils produced by information asymmetries
4. The problems posed by not-for-profit organizations
5. The rapid and confusing course of technical and institutional
change
What does asymmetric information mean? Can you give an
example? - verified answers-When one party in a transaction
has less information than the other party. For example,
physicians and other healthcare providers usually understand
patients' medical options better than patients do. Unaware of
their choices, patients may accept recommendations for
therapies that are not cost-effective or, recognizing their
vulnerability to physicians' self-serving advice, may resist
recommendations made in their best interest.
What is adverse selection? - verified answers-A situation that
occurs when buyers have better information than sellers. For
example, high-risk consumers are willing to pay more for
insurance than low-risk consumers are. (Organizations that
have difficulty distinguishing high-risk from low-risk consumers
are unlikely to be profitable.)
, What is the problem of scarcity? - verified answers-Demand for
a good or service is greater than the availability
What does it mean to say people are assumed to make choices
rationally? - verified answers-focuses on individuals' efforts to
best realize their goals, given their resources.
What does it mean to says resources are scarce? - verified
answers-Anything useful in consumption or production that has
alternative uses.
What is opportunity cost? - verified answers-Potential loss from
a missed opportunity. Passing up the next best choice.
What does "marginal" refer to? - verified answers-The
examination of the costs and benefits through a small change
in the production of goods
What does efficiency refer to? - verified answers-No way to
rearrange production of goods in a way that makes one person
more better off without making somebody else worse off. How
well an economy uses scare resources to meet the
needs/wants of their customers
How do positive economic statements differ from normative
economic statements? - verified answers-Positive economics is
objective while normative economics is subjective. Facts/ What
is vs What should be
How can economics be applied to the health sector? - verified
answers-Describe, Explain, Evaluate, Plan
As we progress through the chapters, think about the special
characteristics that apply to the health sector that might limit the
applicability of traditional economic models. - verified answers-
Social determinants of health, few insurance companies that
providers rely on, not a perfectly competitive market
