ECON 315 – Final Examination
Questions And 100% Correct Answers.
Charging higher prices for one category of patients in order to provide free or subsidized care to
another group is called - Answer cost-shifting.
Economists use the term "marginal" to describe costs and benefits - Answer that are
incremental and thus relevant to decision making.
Which is an example of the negative impact of the Law of Diminishing Marginal Returns? -
Answer Drinking so many glasses of wine that the last glass you had made you very sick.
Early in US history, health insurance was mainly provided to cover: - Answer income loss due
to disability or disease
In your medical clinic, you are debating whether or not to purchase a lithotripter(a machine that
pulverizes kidney stones with sound waves). What is the opportunity cost of investing in a new
lithotripter? - Answer The next best use of the money invested in the equipment.
Decision makers weigh the trade-offs considering incremental benefits and costs of health care
policy, this is based on the principle of: - Answer marginal analysis
You are a consultant and have been employed by Urban General, a large inner-city hospital, to
estimate the demand for its services.Your research indicates that the income elasticity of
demand for the target market is +0.50; the price elasticity of demand is -0.15; and the cross-
price elasticity of demand with respect to the price of services at St. Elsewhere, a near-by
hospital, is +0.35.
The price of services at St.Elsewhere falls by 10 percent.What happens to the quantity of
services demanded at Urban General?. - Answer Quantity demanded falls by 3.5 percent.
Consider the market for calcium supplements. Which event would cause the market price to
decrease and the quantity to increase? - Answer A new, cheaper way to produce supplements
is implemented
Suppose the U.S. Drug Enforcement Agency steps up its efforts to control the illegal importation
of cocaine into the United States. What is the likely effect on the market for illegal drugs in the
, Which of the following would likely lead to the greatest improvement in health status of the
population in the United States? - Answer Improved lifestyles, including reductions in the use
of tobacco, alcohol, and drugs.
The intangible costs associated with reduced quality of life include - Answer Pain and suffering
Researchers use cost-of-illness studies to - Answer compare two or more treatment options
when the medical outcome is identical
Health care that actually harms the patient, such as an adverse reaction to a prescription drug is
called - Answer iatrogenic disease.
Suppose the elasticity of demand for soda is estimated at -0.7; in an attempt to curb obesity, the
government places a "fat tax" on soda increasing the price by 5%. What would happen to the
country's total expenditures on soda? - Answer Total expenditures would increase since the
good is inelastic
If health care spending is already on the flat-of-the-curve, it may not be possible to buy
improved health status by increasing spending. In this situation, the best way to improve health
status may be to - Answer improve life-style decisions by reducing smoking, alcohol
consumption, and drug use.
Which of below is the "least" accurate measure of the quality of a country's healthcare system?
- Answer Overall life expectancy
One of the reasons that women live longer than men in most societies is that: - Answer Men
smoke more regularly than women
Alcohol consumption can cause premature death and play a significant role in all violent crime,
but in some individuals, moderate consumption can have some health benefits including: -
Answer Higher HDL type Cholesterol
Mid-1960s amendments to the Social Security Act created - Answer Medicare and Medicaid.
What is an example of Adverse Selection in the health insurance market? - Answer Healthy,
young people choosing not to buy health insurance because the premiums are very high
Questions And 100% Correct Answers.
Charging higher prices for one category of patients in order to provide free or subsidized care to
another group is called - Answer cost-shifting.
Economists use the term "marginal" to describe costs and benefits - Answer that are
incremental and thus relevant to decision making.
Which is an example of the negative impact of the Law of Diminishing Marginal Returns? -
Answer Drinking so many glasses of wine that the last glass you had made you very sick.
Early in US history, health insurance was mainly provided to cover: - Answer income loss due
to disability or disease
In your medical clinic, you are debating whether or not to purchase a lithotripter(a machine that
pulverizes kidney stones with sound waves). What is the opportunity cost of investing in a new
lithotripter? - Answer The next best use of the money invested in the equipment.
Decision makers weigh the trade-offs considering incremental benefits and costs of health care
policy, this is based on the principle of: - Answer marginal analysis
You are a consultant and have been employed by Urban General, a large inner-city hospital, to
estimate the demand for its services.Your research indicates that the income elasticity of
demand for the target market is +0.50; the price elasticity of demand is -0.15; and the cross-
price elasticity of demand with respect to the price of services at St. Elsewhere, a near-by
hospital, is +0.35.
The price of services at St.Elsewhere falls by 10 percent.What happens to the quantity of
services demanded at Urban General?. - Answer Quantity demanded falls by 3.5 percent.
Consider the market for calcium supplements. Which event would cause the market price to
decrease and the quantity to increase? - Answer A new, cheaper way to produce supplements
is implemented
Suppose the U.S. Drug Enforcement Agency steps up its efforts to control the illegal importation
of cocaine into the United States. What is the likely effect on the market for illegal drugs in the
, Which of the following would likely lead to the greatest improvement in health status of the
population in the United States? - Answer Improved lifestyles, including reductions in the use
of tobacco, alcohol, and drugs.
The intangible costs associated with reduced quality of life include - Answer Pain and suffering
Researchers use cost-of-illness studies to - Answer compare two or more treatment options
when the medical outcome is identical
Health care that actually harms the patient, such as an adverse reaction to a prescription drug is
called - Answer iatrogenic disease.
Suppose the elasticity of demand for soda is estimated at -0.7; in an attempt to curb obesity, the
government places a "fat tax" on soda increasing the price by 5%. What would happen to the
country's total expenditures on soda? - Answer Total expenditures would increase since the
good is inelastic
If health care spending is already on the flat-of-the-curve, it may not be possible to buy
improved health status by increasing spending. In this situation, the best way to improve health
status may be to - Answer improve life-style decisions by reducing smoking, alcohol
consumption, and drug use.
Which of below is the "least" accurate measure of the quality of a country's healthcare system?
- Answer Overall life expectancy
One of the reasons that women live longer than men in most societies is that: - Answer Men
smoke more regularly than women
Alcohol consumption can cause premature death and play a significant role in all violent crime,
but in some individuals, moderate consumption can have some health benefits including: -
Answer Higher HDL type Cholesterol
Mid-1960s amendments to the Social Security Act created - Answer Medicare and Medicaid.
What is an example of Adverse Selection in the health insurance market? - Answer Healthy,
young people choosing not to buy health insurance because the premiums are very high
