LSUS 710 (Health Economics) Exam 1
Which of the following represent a recent change in the payment structure of U.S. health care? (Select
all that apply)
a. Third-party insurance coverage
b. Retrospective payment
c .Risk sharing
d. Public-sector initiative - Answer -A, C, D
By 2010, many progressive policy makers had adopted the opinion that access, quality, and cost in
health care could be simultaneously achieved. Which of the following did they believe to be the
integrator that could make this possible?
a. Risk sharing
b. Horizontal integration
c. ACOs
d. Iron Triangle - Answer -c. ACOs (accountable care organizations)
Opportunity cost is a measure of
a. foregone opportunities.
b. value based on the alternative not chosen.
c. value in terms of the cost of production.
d. the difference between production cost and resource cost.
e. both a and b. - Answer -e. both a and b.
,The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with
sound waves) is
a. defined by the dollar cost of the equipment.
b. the same for every health care provider.
c. measured by the difference between the expected revenues from selling the services of the
lithotripter and the invoice cost of the machine.
d. defined by the next best use of the money invested in the equipment.
e. impossible to calculate. - Answer -d. defined by the next best use of the money invested in the
equipment.
What percentage of Americans considered the complete repeal of the Patient Protection And Affordable
Care Act of 2010 a good thing?
a. 20 percent
b. 30 percent
c. 40 percent
d. 50 percent
e. 60 percent - Answer -c. 40 percent
By 2020, what was the forecasted percentage amount of health care spending paid by individuals?
a. 6 percent
b. 10.4 percent
c. 11.6 percent
d. 17.4 percent
e. Whatever amount we are currently spending - Answer -b. 10.4 percent
The "invisible hand" using Adam Smith's terminology refers to
a. government control of the market.
b. market forces working through the price mechanism.
c. the money supply that serves to keep the economy working smoothly.
, d. the role of innovation in maintaining a steady rate of growth.
e. "behind-the-scenes" policy making to influence how markets allocate scarce resources. - Answer -b.
market forces working through the price mechanism.
According to recent public opinion polls, what percentage of Americans are satisfied with the quality of
the medical care they receive?
a. 15 percent
b. 40 percent
c. 65 percent
d. 70 percent
e. 90 percent - Answer -d. 70 percent
According to economic theory what is the optimal percentage of GDP to be spent on medical care?
a. 6 percent
b. 8 percent
c. 10 percent
d. 12 percent
e. There is no widely accepted way to determine the optimal percentage. - Answer -e. There is no widely
accepted way to determine the optimal percentage
Which of the following statements is based on positive analysis?
a. Individuals without health insurance have less access to physicians' services than those who have
health insurance.
b. The high cost of health insurance places U.S. firms at a competitive disadvantage with their foreign
competitors.
c. Employers should be required to provide health insurance for all full-time workers and their
dependents.
d. none of the above
e. both a and b - Answer -e. both a and b
Which of the following represent a recent change in the payment structure of U.S. health care? (Select
all that apply)
a. Third-party insurance coverage
b. Retrospective payment
c .Risk sharing
d. Public-sector initiative - Answer -A, C, D
By 2010, many progressive policy makers had adopted the opinion that access, quality, and cost in
health care could be simultaneously achieved. Which of the following did they believe to be the
integrator that could make this possible?
a. Risk sharing
b. Horizontal integration
c. ACOs
d. Iron Triangle - Answer -c. ACOs (accountable care organizations)
Opportunity cost is a measure of
a. foregone opportunities.
b. value based on the alternative not chosen.
c. value in terms of the cost of production.
d. the difference between production cost and resource cost.
e. both a and b. - Answer -e. both a and b.
,The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with
sound waves) is
a. defined by the dollar cost of the equipment.
b. the same for every health care provider.
c. measured by the difference between the expected revenues from selling the services of the
lithotripter and the invoice cost of the machine.
d. defined by the next best use of the money invested in the equipment.
e. impossible to calculate. - Answer -d. defined by the next best use of the money invested in the
equipment.
What percentage of Americans considered the complete repeal of the Patient Protection And Affordable
Care Act of 2010 a good thing?
a. 20 percent
b. 30 percent
c. 40 percent
d. 50 percent
e. 60 percent - Answer -c. 40 percent
By 2020, what was the forecasted percentage amount of health care spending paid by individuals?
a. 6 percent
b. 10.4 percent
c. 11.6 percent
d. 17.4 percent
e. Whatever amount we are currently spending - Answer -b. 10.4 percent
The "invisible hand" using Adam Smith's terminology refers to
a. government control of the market.
b. market forces working through the price mechanism.
c. the money supply that serves to keep the economy working smoothly.
, d. the role of innovation in maintaining a steady rate of growth.
e. "behind-the-scenes" policy making to influence how markets allocate scarce resources. - Answer -b.
market forces working through the price mechanism.
According to recent public opinion polls, what percentage of Americans are satisfied with the quality of
the medical care they receive?
a. 15 percent
b. 40 percent
c. 65 percent
d. 70 percent
e. 90 percent - Answer -d. 70 percent
According to economic theory what is the optimal percentage of GDP to be spent on medical care?
a. 6 percent
b. 8 percent
c. 10 percent
d. 12 percent
e. There is no widely accepted way to determine the optimal percentage. - Answer -e. There is no widely
accepted way to determine the optimal percentage
Which of the following statements is based on positive analysis?
a. Individuals without health insurance have less access to physicians' services than those who have
health insurance.
b. The high cost of health insurance places U.S. firms at a competitive disadvantage with their foreign
competitors.
c. Employers should be required to provide health insurance for all full-time workers and their
dependents.
d. none of the above
e. both a and b - Answer -e. both a and b
