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)
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, 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
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