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Health Economics and Financing 5th Edition By Thomas E - Test Bank
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Test Bank For Health Economics and Financing 5th Edition By Thomas E Complete Test Bank
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,Getzen’s Health Economics and Financing, Fifth EditionTest Bank
File: c01; Chapter 1 Choices: Money, Medicine, and Health
I.1.A True/False
1) Over the past 100 years, out of pocket expenditures for health care services by
individuals
have decreased from about 50% to less than 10%.
Answer: False.
Response: 81% personal expenditures in 1929; 11% personal expenditures in 2012.
Reference: 1.2 Flow of Funds/Sources of Financing.
Level: Easy
2) Third party payers account for 60% of all health care expenditures in 2012.
Answer: False.
Response: 89% of all health care expenditures in 2012 are through third-party
financing.
Reference: 1.2 Flow of Funds/Sources of Financing.
Level: Easy
3) Ranking everyone by the amount spent on medical care, 70 percent of the total
(all
expenditures for all people) is accounted for by the top 10 percent of patients.
This phenomenon
is called cost shifting.
Answer: False.
Response: The statistics are correct; the explanation is incorrect. The situation
describes only the
fact that medical expenses are incurred unevenly across all of the population, and
does not
specify who pays that 70 percent share of the nation’s healthcare bill. The term
cost shifting,
however, incorporates the comparison of who incurred the expenses versus who paid
the bill.
Reference: 1.1 What Is Economics?/Financing Health Care AND 1.2 Flow of
Funds/Sources of
Financing.
Level: Medium
I.1.B
4) Not only is the share of the GDP going to health care higher in 2012 than in
1929, the wages
of health care workers have risen more rapidly than for other types of labor.
Answer: True.
Chapter 1
Copyright © 2013 John Wiley & Sons, Inc.
1
,Getzen’s Health Economics and Financing, Fifth Edition
Test Bank
Reference: 1.2 Flow of Funds/ Health Care Providers: The Uses of Funds.
Level: Easy
5) The Flow of Funds idea emphasizes that total dollars spent by individuals,
government and
other third party payers for health care must equal total income earned by health
care providers,
administrators and other health care workers.
Answer: True.
Reference: 1.2 Flow of Funds.
Level: Easy
I.1.C
I.1.D
6) The hospital opens a cancer center in an adjacent abandoned building. Since it
was an
abandoned building, there are no opportunity costs of this decision.
Answer: False.
Response: The building, as well as all other resources that were invested into the
cancer center,
could have been used in an alternate way; to open a women’s health center, for
instance. The
foregone benefits from opening a women’s health center would be the opportunity
cost of this
decision.
Reference: 1.3 Economics Principles as Conceptual Tools/Opportunity Cost
Level: Medium
I.1.E
7) Socioeconomic differences in mortality found in the U.S. are most likely
attributable to lack
of universal health insurance coverage.
Answer: False.
Response: Socioeconomic differences in mortality are noticed in other OECD
countries as well
as in poorer countries like Ghana and Bangladesh.
Reference: 1.4 Health Disparities.
Level: Medium
I.1.F
I.1.G
I.1.H
8) When a drug company advertises it will provide a prescription drug at no charge
to certain
individuals who cannot afford a doctor prescribed drug, costs are most likely being
shifted away
from individuals who are paying high prices to those who are paying nothing.
Answer: False.
Response: Costs are being shifted to individuals who are paying high prices from
those who are
paying nothing.
Chapter 1
Copyright © 2013 John Wiley & Sons, Inc.
2
, Getzen’s Health Economics and Financing, Fifth Edition
Test Bank
Reference: 1.1 What Is Economics?/Financing Health Care.
Level: Easy
I.1.I
I.1.J
I.1.K
9) A hospital system is rewarded with higher profits in the short term when it
implements
electronic health records which increase the timeliness of physician and patient
communication.
Answer: False.
Response: While it is possible that a hospital might realize higher patient
revenues in the long
term if it increases its quality of service in the area of communication, it is
unlikely that an
investment in electronic health records would result in a short term return.
Further, the idea of a
hospital realizing a “profit” is questionable. Most hospitals are “not for profit”
institutions,
which brings into question the maximizing goal of the hospital. This highlights the
difference
between hospitals and the neoclassical profit-maximizing firms.
Reference: 1.1 What Is Economics?/Financing Health Care.
Level: Medium
I.1.L
I.1.M
I.1.N
10) As access to high-quality care has been steadily improving across the world,
inequalities in
health can still be found only in relatively poor countries.
Answer: False.
Reference: 1.4 Health Disparities
Level: Easy
I.1.O Multiple Choice
11) In which of the following examples does the fundamental theorem of exchange not
apply?
a) You pay your optometrist $500 for a new pair of eyeglasses.
b) You donate your old, used eyeglasses to the Lions Club, a charitable
organization which
recycles and distributes the glasses to needy people.
c) You pay a fertility specialist $10,000 to perform In Vitro Fertilization
procedure which does
not result in pregnancy.
d) You pay a fertility specialist $10,000 to perform In Vitro Fertilization
procedure which
results in pregnancy.
e) Unknown to you, your neighbor is tapping into your cable TV service and sharing
your
service.
Answer: e
Chapter 1
Copyright © 2013 John Wiley & Sons, Inc.
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