2024-2025 MHA 710 ACTUAL EXAM 1
100 LATEST UPDATED QUESTIONS
WITH VERIFIED 100% CORRECT
ANSWERS.A+ GRADE RATED
1. What is "economics"?: a map for decision making. Economics
analyzes the allocation of scarce resources.
2. What are some of the specific challenges faced by managers in
healthcare?: 1. The central roles of risk and uncertainty
2. The complexities created by insurance
3. The perils produced by information asymmetries
4. The problems posed by not-for-profit organizations
5. The rapid and confusing course of technical and institutional change
3. What does asymmetric information mean? Can you give an
example?: when one party in a transaction has less information than the
other party. For example, physicians and other healthcare providers usually
understand patients' medical options better than patients do. Unaware of their
choices, patients may accept recommendations for therapies that are not cost-
effective or, recognizing their vulnerability to physicians' self-serving advice,
may resist recommendations made in their best interest.
, 4. What is adverse selection?: a situation that occurs when buyers have
better information than sellers. For example, high-risk consumers are willing
to pay more for insurance than low-risk consumers are. (organizations that
have difficulty distinguishing high-risk from low-risk consumers are unlikely
to be profitable.)
5. What is the problem of scarcity?: demand for a good or service is
greater than the availability
6. What does it mean to say people are assumed to make choices
rationally?: focuses on individuals' efforts to best realize their goals, given
their resources.
7. What does it mean to says resources are scarce?: anything useful in
consumption or production that has alternative uses.
8. What is opportunity cost?: potential loss from a missed opportunity.
Passing up the next best choice.
9. What does "marginal" refer to?: the examination of the costs and
benefits through a small change in the production of goods
10. What does efficiency refer to?: no way to rearrange production of
goods in a way that makes one person more better off without making
somebody else worse off. How well an economy uses scare resources to meet
the needs/wants of their customers
11. How do positive economic statements differ from normative
economic statements?: positive economics is objective while normative
economics is subjective. Facts/ what is vs what should be
12. How can economics be applied to the health sector?: describe,
explain, evaluate, plan
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