Health Economics and Financing –
ST
5th Edition
UV
TEST BANK
IA
_A
PP
Thomas E. Getzen
RO
Comprehensive Test Bank for Instructors
VE
and Students
D?
??
© Thomas E. Getzen
All rights reserved. Reproduction or distribution without permission is prohibited.
©STUDYSTREAM
, TABLE OF CONTENTS
Health Economics and Financing – 5th
ST
Edition
Thomas E. Getzen
UV
1. Choices: Money, Medicine and Health
2. Demand and Supply
IA
3. Cost-Benefit and Cost-Effectiveness Analysis
4. Health Insurance: Financing Medical Care
5. Insurance Contracts and Managed Care
_A
6. Physicians
7. Medical Education, Organization, and Business Practices
8. Hospitals
9. Management and Regulation of Hospital Costs
PP
10.Long-Term Care
11. Pharmaceuticals
12. Financing and Ownership of Health Care Providers
13.Macroeconomics of Medical Care
RO
14.The Role of Government and Public Goods
15.History, Demography, and the Growth of Modern Medicine
16.International Comparisons of Health and Health Expenditures
17.Economic Evaluation of Health Policy: The Patient Protection and
VE
Affordable Care Act of 2010
18.Value for Money in the Future of Health Care
D?
??
Created by MedConnoisseur ©2025/2026
, Getzen’s Health Economics and Financing, Fifth Edition
Test Bank
File: c01; Chapter 1 Choices: Money, Medicine, and Health
ST
I.1.A True/False
1) Over the past 100 years, out of pocket expenditures for health care services by
individuals
have decreased from about 50% to less than 10%.
UV
Answer: False.
Response: 81% personal expenditures in 1929; 11% personal expenditures in 2012.
Reference: 1.2 Flow of Funds/Sources of Financing.
Level: Easy
2) Third party payers account for 60% of all health care expenditures in 2012.
Answer: False.
IA
Response: 89% of all health care expenditures in 2012 are through third-party
financing.
Reference: 1.2 Flow of Funds/Sources of Financing.
Level: Easy
_A
3) Ranking everyone by the amount spent on medical care, 70 percent of the total
(all
expenditures for all people) is accounted for by the top 10 percent of patients.
This phenomenon
is called cost shifting.
Answer: False.
PP
Response: The statistics are correct; the explanation is incorrect. The situation
describes only the
fact that medical expenses are incurred unevenly across all of the population, and
does not
specify who pays that 70 percent share of the nation’s healthcare bill. The term
cost shifting,
RO
however, incorporates the comparison of who incurred the expenses versus who paid
the bill.
Reference: 1.1 What Is Economics?/Financing Health Care AND 1.2 Flow of
Funds/Sources of
Financing.
Level: Medium
I.1.B
VE
4) Not only is the share of the GDP going to health care higher in 2012 than in
1929, the wages
of health care workers have risen more rapidly than for other types of labor.
Answer: True.
Chapter 1
D?
Copyright © 2013 John Wiley & Sons, Inc.
1
??
, Getzen’s Health Economics and Financing, Fifth Edition
Test Bank
Reference: 1.2 Flow of Funds/ Health Care Providers: The Uses of Funds.
Level: Easy
ST
5) The Flow of Funds idea emphasizes that total dollars spent by individuals,
government and
other third party payers for health care must equal total income earned by health
care providers,
UV
administrators and other health care workers.
Answer: True.
Reference: 1.2 Flow of Funds.
Level: Easy
I.1.C
I.1.D
6) The hospital opens a cancer center in an adjacent abandoned building. Since it
IA
was an
abandoned building, there are no opportunity costs of this decision.
Answer: False.
Response: The building, as well as all other resources that were invested into the
cancer center,
_A
could have been used in an alternate way; to open a women’s health center, for
instance. The
foregone benefits from opening a women’s health center would be the opportunity
cost of this
decision.
Reference: 1.3 Economics Principles as Conceptual Tools/Opportunity Cost
PP
Level: Medium
I.1.E
7) Socioeconomic differences in mortality found in the U.S. are most likely
attributable to lack
of universal health insurance coverage.
Answer: False.
RO
Response: Socioeconomic differences in mortality are noticed in other OECD
countries as well
as in poorer countries like Ghana and Bangladesh.
Reference: 1.4 Health Disparities.
Level: Medium
I.1.F
I.1.G
VE
I.1.H
8) When a drug company advertises it will provide a prescription drug at no charge
to certain
individuals who cannot afford a doctor prescribed drug, costs are most likely being
shifted away
from individuals who are paying high prices to those who are paying nothing.
D?
Answer: False.
Response: Costs are being shifted to individuals who are paying high prices from
those who are
paying nothing.
Chapter 1
??
Copyright © 2013 John Wiley & Sons, Inc.
2
ST
5th Edition
UV
TEST BANK
IA
_A
PP
Thomas E. Getzen
RO
Comprehensive Test Bank for Instructors
VE
and Students
D?
??
© Thomas E. Getzen
All rights reserved. Reproduction or distribution without permission is prohibited.
©STUDYSTREAM
, TABLE OF CONTENTS
Health Economics and Financing – 5th
ST
Edition
Thomas E. Getzen
UV
1. Choices: Money, Medicine and Health
2. Demand and Supply
IA
3. Cost-Benefit and Cost-Effectiveness Analysis
4. Health Insurance: Financing Medical Care
5. Insurance Contracts and Managed Care
_A
6. Physicians
7. Medical Education, Organization, and Business Practices
8. Hospitals
9. Management and Regulation of Hospital Costs
PP
10.Long-Term Care
11. Pharmaceuticals
12. Financing and Ownership of Health Care Providers
13.Macroeconomics of Medical Care
RO
14.The Role of Government and Public Goods
15.History, Demography, and the Growth of Modern Medicine
16.International Comparisons of Health and Health Expenditures
17.Economic Evaluation of Health Policy: The Patient Protection and
VE
Affordable Care Act of 2010
18.Value for Money in the Future of Health Care
D?
??
Created by MedConnoisseur ©2025/2026
, Getzen’s Health Economics and Financing, Fifth Edition
Test Bank
File: c01; Chapter 1 Choices: Money, Medicine, and Health
ST
I.1.A True/False
1) Over the past 100 years, out of pocket expenditures for health care services by
individuals
have decreased from about 50% to less than 10%.
UV
Answer: False.
Response: 81% personal expenditures in 1929; 11% personal expenditures in 2012.
Reference: 1.2 Flow of Funds/Sources of Financing.
Level: Easy
2) Third party payers account for 60% of all health care expenditures in 2012.
Answer: False.
IA
Response: 89% of all health care expenditures in 2012 are through third-party
financing.
Reference: 1.2 Flow of Funds/Sources of Financing.
Level: Easy
_A
3) Ranking everyone by the amount spent on medical care, 70 percent of the total
(all
expenditures for all people) is accounted for by the top 10 percent of patients.
This phenomenon
is called cost shifting.
Answer: False.
PP
Response: The statistics are correct; the explanation is incorrect. The situation
describes only the
fact that medical expenses are incurred unevenly across all of the population, and
does not
specify who pays that 70 percent share of the nation’s healthcare bill. The term
cost shifting,
RO
however, incorporates the comparison of who incurred the expenses versus who paid
the bill.
Reference: 1.1 What Is Economics?/Financing Health Care AND 1.2 Flow of
Funds/Sources of
Financing.
Level: Medium
I.1.B
VE
4) Not only is the share of the GDP going to health care higher in 2012 than in
1929, the wages
of health care workers have risen more rapidly than for other types of labor.
Answer: True.
Chapter 1
D?
Copyright © 2013 John Wiley & Sons, Inc.
1
??
, Getzen’s Health Economics and Financing, Fifth Edition
Test Bank
Reference: 1.2 Flow of Funds/ Health Care Providers: The Uses of Funds.
Level: Easy
ST
5) The Flow of Funds idea emphasizes that total dollars spent by individuals,
government and
other third party payers for health care must equal total income earned by health
care providers,
UV
administrators and other health care workers.
Answer: True.
Reference: 1.2 Flow of Funds.
Level: Easy
I.1.C
I.1.D
6) The hospital opens a cancer center in an adjacent abandoned building. Since it
IA
was an
abandoned building, there are no opportunity costs of this decision.
Answer: False.
Response: The building, as well as all other resources that were invested into the
cancer center,
_A
could have been used in an alternate way; to open a women’s health center, for
instance. The
foregone benefits from opening a women’s health center would be the opportunity
cost of this
decision.
Reference: 1.3 Economics Principles as Conceptual Tools/Opportunity Cost
PP
Level: Medium
I.1.E
7) Socioeconomic differences in mortality found in the U.S. are most likely
attributable to lack
of universal health insurance coverage.
Answer: False.
RO
Response: Socioeconomic differences in mortality are noticed in other OECD
countries as well
as in poorer countries like Ghana and Bangladesh.
Reference: 1.4 Health Disparities.
Level: Medium
I.1.F
I.1.G
VE
I.1.H
8) When a drug company advertises it will provide a prescription drug at no charge
to certain
individuals who cannot afford a doctor prescribed drug, costs are most likely being
shifted away
from individuals who are paying high prices to those who are paying nothing.
D?
Answer: False.
Response: Costs are being shifted to individuals who are paying high prices from
those who are
paying nothing.
Chapter 1
??
Copyright © 2013 John Wiley & Sons, Inc.
2
