HSCI 140 UPDATED ACTUAL EXAM QUESTIONS
AND CORRECT ANSWERS
One instance where adverse selection is a key concern is with the increasing popularity of which
type of health plan? - CORRECT ANSWERS High-deductible health plan
True or False? Uncertainty about risk and the presence of asymmetric information lead to the
problem of adverse selection. - CORRECT ANSWERS true
True or False? The point-of-service model attempts to locate a middle ground between the very
restrictive HMO models and the fee-for-service structure that resulted in very high healthcare
utilization and costs - CORRECT ANSWERS False
Blue Cross established its first hospital insurance plan at what university in 1929 by agreeing to
provide 1,500 teachers with 21 days of hospital care per year at a price of $6 per person? -
CORRECT ANSWERS Baylor University
______________________ uses managed care organization personnel to manage and
coordinate patient care in an attempt to provide the care in the most cost-effective manner -
CORRECT ANSWERS Case management
True or False? Individual contributions to health savings accounts are made with pre-income tax
dollars; however, withdrawals to pay for qualified healthcare expense are taxable. - CORRECT
ANSWERS False
Which of the following has the most restrictive rules pertaining to patients and providers? -
CORRECT ANSWERS Health maintenance organization
, True or False? A public good is non-exclusive because it is too costly to try to exclude individuals
who are non paying from enjoying public goods. - CORRECT ANSWERS true
True or False? Before the age of 65, women generally have needs for more healthcare services
than men do. - CORRECT ANSWERS True
Which of the following is defined as any valued impact resulting from any action that affects
someone who did not fully consent to it through participation in a voluntary exchange? -
CORRECT ANSWERS Externality
True or False? As a consumer's income increases, the demand for inferior goods will also
increase. - CORRECT ANSWERS False
Which of the following refers to the price of producing one more unit of the output? - CORRECT
ANSWERS Marginal cost
Which of the following is defined as the percentage change in quantity supplied resulting from a
1% increase in the price of buying the good? - CORRECT ANSWERS Supply elasticity
A(n) _________________ occurs when the market price in a competitive market is higher than
the marginal cost of production, causing producers to lower their prices and increase sales of
their product. - CORRECT ANSWERS surplus
At the point where there is a balance between the price quantity supplied and the quantity
demanded and the price is set to the marginal cost of production, there is _______________ in
the market. - CORRECT ANSWERS Equilibrium
If the demand for a good is not sensitive to changes in price, the product is _______________.
(Inelastic) - CORRECT ANSWERS inelastic
AND CORRECT ANSWERS
One instance where adverse selection is a key concern is with the increasing popularity of which
type of health plan? - CORRECT ANSWERS High-deductible health plan
True or False? Uncertainty about risk and the presence of asymmetric information lead to the
problem of adverse selection. - CORRECT ANSWERS true
True or False? The point-of-service model attempts to locate a middle ground between the very
restrictive HMO models and the fee-for-service structure that resulted in very high healthcare
utilization and costs - CORRECT ANSWERS False
Blue Cross established its first hospital insurance plan at what university in 1929 by agreeing to
provide 1,500 teachers with 21 days of hospital care per year at a price of $6 per person? -
CORRECT ANSWERS Baylor University
______________________ uses managed care organization personnel to manage and
coordinate patient care in an attempt to provide the care in the most cost-effective manner -
CORRECT ANSWERS Case management
True or False? Individual contributions to health savings accounts are made with pre-income tax
dollars; however, withdrawals to pay for qualified healthcare expense are taxable. - CORRECT
ANSWERS False
Which of the following has the most restrictive rules pertaining to patients and providers? -
CORRECT ANSWERS Health maintenance organization
, True or False? A public good is non-exclusive because it is too costly to try to exclude individuals
who are non paying from enjoying public goods. - CORRECT ANSWERS true
True or False? Before the age of 65, women generally have needs for more healthcare services
than men do. - CORRECT ANSWERS True
Which of the following is defined as any valued impact resulting from any action that affects
someone who did not fully consent to it through participation in a voluntary exchange? -
CORRECT ANSWERS Externality
True or False? As a consumer's income increases, the demand for inferior goods will also
increase. - CORRECT ANSWERS False
Which of the following refers to the price of producing one more unit of the output? - CORRECT
ANSWERS Marginal cost
Which of the following is defined as the percentage change in quantity supplied resulting from a
1% increase in the price of buying the good? - CORRECT ANSWERS Supply elasticity
A(n) _________________ occurs when the market price in a competitive market is higher than
the marginal cost of production, causing producers to lower their prices and increase sales of
their product. - CORRECT ANSWERS surplus
At the point where there is a balance between the price quantity supplied and the quantity
demanded and the price is set to the marginal cost of production, there is _______________ in
the market. - CORRECT ANSWERS Equilibrium
If the demand for a good is not sensitive to changes in price, the product is _______________.
(Inelastic) - CORRECT ANSWERS inelastic
