MHA 710 Exam 1 Sample Questions And Answers

MHA 710 Exam 1 Sample Questions And
Answers
ARhealthRinsuranceRarrangementRwhereRindividualsRhaveRaccessRtoRhealthRcareRinRexcha
ngeRforRaRpremiumRisRcalledR-RCORRECTRRANSWER-ThirdRpartyRpaymentRsystem

ARpatientRhasRaRmedicalRconditionRbutRheRdoesRnotRknowRwhatRi.Ris.RTheRphysicianRheRse
esRdiagnosesRhisRillnessRcorrectly.RWhatRtermRappliesRtoRthisRsituationR-
RCORRECTRRANSWER-asymetricRinformation




aRphysiciansRofficeRexpensesRincreaseRbyR10%,RsoRtheRdrRdecidesRtoRraiseRtheRpriceRofRof
ficeRvisits.RAssumingRtheRdemandRcurveRforRofficeRvisitsRdoesRnotRshift,RwhatRwillRhappenRt
oRtheRtotalRnumberRofRofficeRvisitsRandRpracticeRrevenuesR-RCORRECTRRANSWER-
officeRvisitsRwillRfallRandRtotalRrevenuesRwillRriseRifRdemandRisRinelastic

ARphysiciansRofficeRincreasesRdemandR10%,RsoRtheyRdecideRtoRraiseRtheRpriceRofRofficeRvi
sits.RAssumingRtheRdemandRcurveRforRofficeRvisitsRdoesRNOTRshift,RwhatRwillRhappenRtoRth
eRtotalRnumberRofRvisitsRandRpracticeRrevenuesR-RCORRECTRRANSWER-
officeRvisitsRwillRfallRandRtotalRrevenueRwillRriseRifRdemandRisRinelastic

ARshortageRofRhospitalRbedsRwillRlikelyRleadRtoR-RCORRECTRRANSWER-
anRincreaseRinRtheRpriceRofRaRhospitalRstay.

accordingRtoReconomicRtheory,RwhatRisRtheRoptimalRpercentageRofRGDPRtoRbeRspentRonRm
edicalRcareR-RCORRECTRRANSWER-
thereRisRnoRwidelyRacceptedRwayRtoRdetermineRtheRoptimalRpercentage

accordingRtoRrecentRpublicRopinionRpolls,RwhatRpercentageRofRamericansRareRsatisfiedRwit
hRtheRqualityRofRtheRmedicalRcareRtheyRreceiveR-RCORRECTRRANSWER-70%

AllRofRtheRfollowingRwillRcauseRaRshiftRinRtheRmedicalRcareRsupplyRcurve,Rexcept:R-
RCORRECTRRANSWER-

aRchangeRinRtheRpercentageRofRtheRpopulationRwithRhealthRinsurance

anRinferiorRgoodR-RCORRECTRRANSWER-
causesRtheRdemandRcurveRtoRshiftRlessRwhenRincomeRrises

, AnRinferiorRgoodR-RCORRECTRRANSWER-
hasRnegativeRincomeRelasticityRandRisRoneRwhereRtheRdemandRcurveRshiftsRtoRtheRleftRwhe
nRincomeRgoesRup

AnRobservationalRstudyRprovidesRaRbiasedRestimateRofRtheRtrueReffectRofRaRtreatmentRonRa
RmedicalRoutcomeRbecause:R-RCORRECTRRANSWER-

ItRisRdifficultRtoRfindRaRcontrolRgroupRthatRisRequivalentRtoRtheRtreatmentRgroup

AssumeRanRinitialRequilibriumRatRD1RandRS1RwithRaRpriceRofR$1.20RmillionRperRmachine.RIfRt
heRgovernmentRplacesRaR$100,000RexciseRtaxRonReachRnewRscannerRsold,RtheRnewRequili
briumRpriceRwillRbe:R-RCORRECTRRANSWER-lessRthanR1.30Rmill

AssumingRprovidersRwillRaccommodateRpatientRdesires,RwhatReffectRwouldRaRbindingRpric
eRceilingRhaveRonRtheRhealthcareRmarketR-RCORRECTRRANSWER-
priceRwillRdecreaseRtoRadhereRtoRtheRpriceRceilingRandRquantityRwillRincrease

assumingRthatRinputsRareRperfectRcompliments,RhowRwillRtheRproductionRisoquantsRbeRgra
phicallyRdepictedR-RCORRECTRRANSWER-l-shapedRcurves

AssumingRthatRprovidersRwillRonlyRaccommodateRpatientRdesiresRupRtoRaRpoint,RwhatReffe
ctRwouldRaRbindingRpriceRceilingRhaveRonRtheRhealthcareRmarketR-RCORRECTRRANSWER-
quantityRofRhealthcareRsuppliedRwouldRfall

ByR2020,RwhatRwasRtheRforceastedRpercentageRamountRofRhealthcareRspendingRpaidRbyRi
ndividualsR-RCORRECTRRANSWER-10.4R%

ChargingRhigherRpricesRforRoneRcategoryRofRpatientsRinRorderRtoRprovideRfreeRorRsubsidize
dRcareRtoRanotherRgroupRisRcalled:R-RCORRECTRRANSWER-costRshifting

EconomistsRuseRtheRtermRmarginalRtoRdescribeRcostsRandRbenefitsR-
RCORRECTRRANSWER-thatRareRincrementalRandRthusRrelevantRtoRdecisionRmaking




EvenRinRtheRUS,Rapproximately,RwhatRpercentRofRmedicalRcareRisRpurchasedRthroughRinsu
rance,RgovernmentRprogramsRorRotherRthirdRpartyRinsurers?R-RCORRECTRRANSWER-
90%

howRdifferentRisRmedicalRcareRfromRotherRcommodities?RAllRofRtheRfollowingRareRfromRArro
w'sRthesisRexceptR-RCORRECTRRANSWER-preponderanceRofRnonRprofitRproviders

ifRaRhospitalRdumpsRitsRbiohazardousRwasteRintoRtheRoceanRandRitRpollutesRtheRneighborin
gRstate,RthisRisRanRexampleRofR-RCORRECTRRANSWER-aRnegativeRexternality

IfRaRhospitalRisRexperiencingReconomiesRofRsaleR-RCORRECTRRANSWER-
itsRaverageRcostRcurveRisRnegativelyRslopedRasRoutputRincreases