,1. Question: What is the primary economic rationale
behind health insurance?
- A) To increase healthcare profits
- B) To spread risk and reduce financial uncertainty
- C) To ensure universal healthcare access
- D) To decrease government healthcare spending
Correct Answer: B) To spread risk and reduce financial
uncertainty
Rationale: Health insurance pools risk among many
insured individuals, reducing financial uncertainty for any
one person. This helps individuals manage high and
unpredictable healthcare costs.
2. Question: In behavioral economics, which concept
explains why patients might prefer a treatment with
immediate benefits over one with long-term benefits?
- A) Loss aversion
- B) Hyperbolic discounting
- C) Framing effect
- D) Overconfidence bias
Correct Answer: B) Hyperbolic discounting
Rationale: Hyperbolic discounting refers to the
tendency to choose smaller, immediate rewards over larger,
later ones, reflecting impulsivity and short-term bias.
, - B) Overutilization of healthcare services due to
insurance coverage
- C) Insurance companies denying claims
- D) Providers increasing costs due to competition
Correct Answer: B) Overutilization of healthcare
services due to insurance coverage
Rationale: Moral hazard occurs when individuals
consume more healthcare services than necessary
because they do not bear the full cost due to insurance
coverage.
4. Question: Which policy is aimed at reducing healthcare
costs through the promotion of primary care and preventive
services?
- A) Fee-for-service
- B) Capitation payment
- C) Value-based care
- D) Catastrophic health insurance
Correct Answer: C) Value-based care
Rationale: Value-based care incentivizes healthcare
providers to focus on delivering quality care and preventive
services to reduce long-term costs.
5. Question: In health economics, what is a common
consequence of adverse selection?
- A) Improved patient outcomes
- B) Efficient health insurance markets
- C) Higher premiums and reduced market stability
- D) Greater access to specialist care
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 or Stuvia-credit 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 ClementeO. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.