MHA 710 EXAM I
because resources are scarce, what are the 3 important questions to ask
cost
marginal or incremental cost
rational decision making
information asymmetry
adverse selection
social determinants of health
scarce resource
positive economics
normative economics
input
output
ma...
1). Because resources are scarce, what are the 3 important questions to ask
Ans: 1- WHAT shall we produce (or not)
2- HOW shall we produce it
3- WHO gets what produced
2). Cost
Ans: the value of a resource in its next best use
3). Marginal or incremental cost
Ans: the cost of producing an additional unit of output
4). Rational decision making
Ans: choosing the course of action that offers the best outcomes, given the constraints
one faces
5). Information asymmetry
Ans: when one party in a transaction has less information than the other party
6). Adverse selection
Ans: when buyers have better information than sellers.
ex: high-risk consumers are willing to pay more for insurance than low-risk consumers
are.
7). Social determinants of health
Ans: factors that affect health independently of healthcare (education & housing)
PaperStoc.com Page 1 of 8
, 8). Scarce resource
Ans: anything useful in consumption or production that has alternative uses.
9). Positive economics
Ans: using objective analysis and evidence to answer questions about individuals,
organizations, and societies (factual statements)
10). Normative economics
Ans: using values to identify the best options. subjective statements of what SHOULD
be
11). Input
Ans: a good or service used in production
12). Output
Ans: a good or service produced by an organization
13). Marginal analysis
Ans: analysis of the effects of small changes in a decision variable (price or volume of
output) on outcomes (costs, profits, or probability of recovery)
14). Life year
Ans: one additional year of life
15). Opportunity cost
Ans: value of what one cannot do as a result of making a choice
16). Managed care
Ans: loosely defined term that includes all plans except open-ended fee-for-service. it is
sometimes used to describe the techniques insurance companies use
PaperStoc.com Page 2 of 8
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Academik001. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £12.31. You're not tied to anything after your purchase.