MHA 710 Exam 1 LATEST
UPDATE WITH QUESTIONS
AND 100% VERIFIED
ANSWERS (GRADED A+)
,What is "economics"? - VERIFIED ANSWER -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 ANSWER -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 ANSWER -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 ANSWER -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 ANSWER -
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 ANSWER -focuses on
individuals' efforts to best realize their goals, given their
resources.
What does it mean to says resources are scarce? - VERIFIED
ANSWER -Anything useful in consumption or production that
has alternative uses.
UPDATE WITH QUESTIONS
AND 100% VERIFIED
ANSWERS (GRADED A+)
,What is "economics"? - VERIFIED ANSWER -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 ANSWER -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 ANSWER -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 ANSWER -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 ANSWER -
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 ANSWER -focuses on
individuals' efforts to best realize their goals, given their
resources.
What does it mean to says resources are scarce? - VERIFIED
ANSWER -Anything useful in consumption or production that
has alternative uses.
