Exam 2: MHA 710 / MHA710 (Latest 2025 / 2026) Healthcare Economics | Questions and Verified Answers | 100% Correct | Grade A - LSU
Question:
One result of asymmetric information in health insurance markets is
A. an optimal number of insurance policies sold.
B. adverse selection.
C. exter...
Question:
One result of asymmetric information in health insurance markets is
A. an optimal number of insurance policies sold.
B. adverse selection.
C. externalities in consumption.
D. a low marginal benefit of additional information for the buyer of
insurance.
E. the principal-agent problem.
Answer:
B. adverse selection.
Question:
Moral hazard and adverse selection are both examples of
A. the principal-agent problem.
B. externalities in consumption.
C. efficiency in markets.
D. perfect information.
E. asymmetric information.
,Answer:
E. asymmetric information.
Question:
Insurers try to minimize moral hazard by
A. only selling policies to individuals with high ethical standards.
B. requiring advance payments of premiums.
C. charging higher premiums to individuals than to groups.
D. charging deductibles and coinsurance.
E. refusing to sell insurance to individuals with chronic illnesses.
Answer:
D. charging deductibles and coinsurance.
Question:
Insurance works best in situations where
A. there is a high probability of a small loss.
B. there is a low probability of a small loss.
C. there is a high probability of a large loss.
D. there is a low probability of a large loss.
E. the level of probability and the size of the loss are irrelevant.
Answer:
D. there is a low probability of a large loss.
,Question:
Analysts cite figures on the number of uninsured in the United States as low
as 10 million and as high as 60 million. Which of the following is a true
statement?
A. The uninsured are all free riders.
B. Most of the uninsured have health problems and are not able to get private
health insurance.
C. Most of the uninsured have some labor-force connection—either working
or as a dependent of someone who is working.
D. The lack of health insurance means that the individual has virtually no
access to medical care.
E. Once you lose your health insurance, it is extremely difficult to get
reinsured.
Answer:
C. Most of the uninsured have some labor-force connection—either working
or as a dependent of someone who is working.
Question:
The highest incidence of those without health insurance occurs in which age
category?
A. Under 18 years of age
B. 18-34 years of age
C. 35-44 years of age
D. 45-64 years of age
E. Over 65 years of age
Answer:
D. 45-64 years of age
, Question:
Many individuals without health insurance receive "free" care. What are the
sources of most of the care they receive?
A. Public hospitals and clinics
B. Private, not-for-profit hospitals
C. Private, for-profit hospitals
D. Multi-specialty physicians' practices
E. Solo practitioners and their associates
Answer:
A. Public hospitals and clinics
Question:
The percentage of a population that has a specific disease at a point in time.
Answer:
Disease prevalence
Question:
Premature death that could have been avoided with timely access to high-
quality health care.
Answer:
Amenable mortality
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