MHA 710 - Healthcare Economics - Exam 2023/2024

b. long-run average costs decline as output increases Economies of scale refers to a situation in a production process where long-run average cost declines as output expands. Efficiency-improving expansion leads to a number of technical advantages: increased purchasing power along with specializ...

Many economists consider medical care a superior good. Which of the following statements is true regarding a superior good? As consumer incomes increases, consumers spend more on superior goods. The primary tasks required to conduct a successful cost effectiveness study are all of the following ...

Using the physician-control model to explain hospital behavior leads to which of the following conclusions? Other medical inputs tend to be overused to maximize physicians' productivity Compared to the not-for-profit organizational form, the for-profit environment Allows for the transfer of ass...

What is "economics"? - CORRECT 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? - CORRECT ANSWER-1. The central roles of risk and uncertainty 2. The complexities created by insuran...

In order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)? a. Customers cannot know that different prices are being charged. b. Markets must be segmentable, identifying differences...

Suppose your assignment is to use the standard time trade-off approach to measure quality of life. You are given the following information. An individual is faced with leaving the remaining 10 years of their life suffering from severe osteoporosis. The individual reveals that they would be willin...

Research indicates that the 2014 expansion of Medicaid has led to a number of unintended consequences including: - CORRECT ANSWER-higher per capita spending on the expansion population than anticipated. Which of the following statements is true about the Medicaid program? - CORRECT ANSWER-The ma...

Suppose you must rely exclusively on cost-effectiveness analysis (CEA) to determine whether a category of people receives an expensive, potentially life-saving, intervention. Which of the following considerations must you keep in mind when making your decision? - CORRECT ANSWER-CEA ignores the p...