Question 1

Nonexcludable and nonrival goods are known as

Accepted Answer

A)  Public goods. 
B)  Private goods. 
C)  Efficient goods. . 
D)  Those which are the last to be purchased. 
E)  There is no such thing as goods which are both Nonexcludable and nonrival. 
A)  Public goods. 
B)  Private goods. 
C)  Efficient goods. . 
D)  Those which are the last to be purchased. 
E)  There is no such thing as goods which are both Nonexcludable and nonrival. A

Question 2

When a physician knows more about alternative treatments than her patients, we say that _______ exists.

Accepted Answer

A)  rational ignorance. 
B)  perfect information. 
C)  asymmetric information. 
D)  moral hazard. 
E)  adverse selection. 
A)  rational ignorance. 
B)  perfect information. 
C)  asymmetric information. 
D)  moral hazard. 
E)  adverse selection. C

Question 3

Approximately what percentage of total health care spending goes toward hospital care?

Accepted Answer

A)  One-tenth. 
B)  One-fifth. 
C)  One-fourth. 
D)  One-third. 
E)  One-half. 
A)  One-tenth. 
B)  One-fifth. 
C)  One-fourth. 
D)  One-third. 
E)  One-half. D

Question 4

The market for medical care relies primarily on:

Accepted Answer

A)  For profit providers. 
B)  Not for profit providers. 
C)  Co-ops. 
D)  Hospitals. 
E)  The substitution effect. 
A)  For profit providers. 
B)  Not for profit providers. 
C)  Co-ops. 
D)  Hospitals. 
E)  The substitution effect.

Question 5

In which of the following countries would an increase in per capita income likely result in the most improvement to health status of the population? 2006 per capita incomes in PPP dollars shown in parentheses.)

Accepted Answer

A)  Mexico $13,383) 
B)  New Zealand $26,068) 
C)  Germany $32,900) 
D)  United Kingdom $34,084) 
E)  United States $44,639) 
A)  Mexico $13,383) 
B)  New Zealand $26,068) 
C)  Germany $32,900) 
D)  United Kingdom $34,084) 
E)  United States $44,639)

Question 6

Under which of the following circumstances is the principal-agent problem likely to be most serious.

Accepted Answer

A)  Between general practitioners and patients. 
B)  Between surgeons and patients. 
C)  Between hospitals and nurses. 
D)  Between dentists and physicians. 
E)  Between physicians and lawyers. 
A)  Between general practitioners and patients. 
B)  Between surgeons and patients. 
C)  Between hospitals and nurses. 
D)  Between dentists and physicians. 
E)  Between physicians and lawyers.

Question 7

Inoculation programs against certain diseases such as small pox, polio, and whooping cough create

Accepted Answer

A)  public goods. 
B)  positive externalities in consumption. 
C)  nonrival goods. 
D)  nonexcludable goods. 
E)  external costs to society equal to the costs of the program. 
A)  public goods. 
B)  positive externalities in consumption. 
C)  nonrival goods. 
D)  nonexcludable goods. 
E)  external costs to society equal to the costs of the program.

Question 8

What measures would likely lower infant mortality rates in the United States?

Accepted Answer

A)  Prenatal care programs in low-income neighborhoods. 
B)  Reduced drug use among expectant mothers. 
C)  Better nutrition. 
D)  Delaying childbearing beyond the teen-age years. 
E)  All of the above. 
A)  Prenatal care programs in low-income neighborhoods. 
B)  Reduced drug use among expectant mothers. 
C)  Better nutrition. 
D)  Delaying childbearing beyond the teen-age years. 
E)  All of the above.

Question 9

A patient has a medical condition, but he doesn't know what it is. The physician he sees diagnoses his illness correctly. What term applies to this situation?

Accepted Answer

A)  Principle-agent problem. 
B)  Rational ignorance. 
C)  Externalities. 
D)  Asymmetric information 
E)  The substitution effect. 
A)  Principle-agent problem. 
B)  Rational ignorance. 
C)  Externalities. 
D)  Asymmetric information 
E)  The substitution effect.

Question 10

Which of the following might cause a market to produce a quantity that is less than optimal?

Accepted Answer

A)  A price ceiling above the market equilibrium price. 
B)  Market control by a monopolist. 
C)  A subsidy to low-income consumers. 
D)  None of the above. 
A)  A price ceiling above the market equilibrium price. 
B)  Market control by a monopolist. 
C)  A subsidy to low-income consumers. 
D)  None of the above.

Question 11

Approximately what percentage of total health care spending goes toward physicians' services?

Accepted Answer

A)  One-tenth. 
B)  One-fifth. 
C)  One-fourth. 
D)  One-third. 
E)  One-half. 
A)  One-tenth. 
B)  One-fifth. 
C)  One-fourth. 
D)  One-third. 
E)  One-half.

Question 12

Which of the following results from providers having more information about treatment alternatives than their patients?

Accepted Answer

A)  Principle-agent problem. 
B)  Rational ignorance. 
C)  Externalities. 
D)  Adverse selection. 
E)  The substitution effect. 
A)  Principle-agent problem. 
B)  Rational ignorance. 
C)  Externalities. 
D)  Adverse selection. 
E)  The substitution effect.

Question 13

Prospective payment in the hospital sector

Accepted Answer

A)  resulted in the hospital keeping any surplus payment. 
B)  resulted in the hospital absorbing any loss from the payment. 
C)  changed the incentive structure completely. 
D)  all of these are true. 
A)  resulted in the hospital keeping any surplus payment. 
B)  resulted in the hospital absorbing any loss from the payment. 
C)  changed the incentive structure completely. 
D)  all of these are true.

Question 14

The optimal level of output may be defined as that level of output where

Accepted Answer

A)  average benefit exceeds average cost by the greatest amount. 
B)  total benefit equals total cost. 
C)  marginal benefit exceeds marginal cost by the greatest amount. 
D)  the marginal benefit of the last unit purchased equals its marginal cost. 
E)  it is impossible to define optimal in any meaningful way. 
A)  average benefit exceeds average cost by the greatest amount. 
B)  total benefit equals total cost. 
C)  marginal benefit exceeds marginal cost by the greatest amount. 
D)  the marginal benefit of the last unit purchased equals its marginal cost. 
E)  it is impossible to define optimal in any meaningful way.

Question 15

The government agency that controls the development and availability of new medical discoveries, including pharmaceutical drugs is

Accepted Answer

A)  the Health Care Financing Administration. 
B)  the Food and Drug Administration. 
C)  the Centers for Disease Control. 
D)  the National Institutes for Health. 
E)  the Federal Emergency Medical Administration. 
A)  the Health Care Financing Administration. 
B)  the Food and Drug Administration. 
C)  the Centers for Disease Control. 
D)  the National Institutes for Health. 
E)  the Federal Emergency Medical Administration.

Question 16

If a hospital is experiencing economies of scale,

Accepted Answer

A)  its average cost curve is positively sloped as output increases. 
B)  its average cost curve is negatively sloped as output increases. 
C)  it should reduce its output level to lower costs. 
D)  quality is falling as output is rising. 
E)  both b and c are true. 
A)  its average cost curve is positively sloped as output increases. 
B)  its average cost curve is negatively sloped as output increases. 
C)  it should reduce its output level to lower costs. 
D)  quality is falling as output is rising. 
E)  both b and c are true.

Question 17

Which of the following would likely lead to the greatest improvement in health status of the population in the United States?

Accepted Answer

A)  Higher per capita incomes. 
B)  More spending on public health, such as improved water supply and sanitation. 
C)  More medical care spending overall. 
D)  Improved lifestyles, including reductions in the use of tobacco, alcohol, and drugs. 
E)  More rural hospitals. 
A)  Higher per capita incomes. 
B)  More spending on public health, such as improved water supply and sanitation. 
C)  More medical care spending overall. 
D)  Improved lifestyles, including reductions in the use of tobacco, alcohol, and drugs. 
E)  More rural hospitals.

Nonexcludable and nonrival goods are known as

When a physician knows more about alternative treatments than her patients, we say that _______ exists.

Approximately what percentage of total health care spending goes toward hospital care?

The market for medical care relies primarily on:

In which of the following countries would an increase in per capita income likely result in the most improvement to health status of the population? 2006 per capita incomes in PPP dollars shown in parentheses.)

Under which of the following circumstances is the principal-agent problem likely to be most serious.

Inoculation programs against certain diseases such as small pox, polio, and whooping cough create

What measures would likely lower infant mortality rates in the United States?

A patient has a medical condition, but he doesn't know what it is. The physician he sees diagnoses his illness correctly. What term applies to this situation?

Which of the following might cause a market to produce a quantity that is less than optimal?

Approximately what percentage of total health care spending goes toward physicians' services?

Which of the following results from providers having more information about treatment alternatives than their patients?

Prospective payment in the hospital sector

The optimal level of output may be defined as that level of output where

The government agency that controls the development and availability of new medical discoveries, including pharmaceutical drugs is

If a hospital is experiencing economies of scale,

Which of the following would likely lead to the greatest improvement in health status of the population in the United States?

US Medical Care: an Uncertain Future

Using Economics to Study Health Care Issues

Economic Evaluation in Health Care

The Demand for Health and Medical Care

Population Health

The Market for Health Insurance

Managed Care

The Physicians Services Market

The Hospital Services Market

The Market for Pharmaceuticals

Medicare

Medicaid

Medical Care Systems Worldwide

Filters

Exam 3: Analyzing Medical Care Markets

Nonexcludable and nonrival goods are known as

When a physician knows more about alternative treatments than her patients, we say that _______ exists.

Approximately what percentage of total health care spending goes toward hospital care?

The market for medical care relies primarily on:

In which of the following countries would an increase in per capita income likely result in the most improvement to health status of the population? 2006 per capita incomes in PPP dollars shown in parentheses.)

Under which of the following circumstances is the principal-agent problem likely to be most serious.

Inoculation programs against certain diseases such as small pox, polio, and whooping cough create

What measures would likely lower infant mortality rates in the United States?

A patient has a medical condition, but he doesn't know what it is. The physician he sees diagnoses his illness correctly. What term applies to this situation?

Which of the following might cause a market to produce a quantity that is less than optimal?

Approximately what percentage of total health care spending goes toward physicians' services?

Which of the following results from providers having more information about treatment alternatives than their patients?

Prospective payment in the hospital sector

The optimal level of output may be defined as that level of output where

The government agency that controls the development and availability of new medical discoveries, including pharmaceutical drugs is

If a hospital is experiencing economies of scale,

Which of the following would likely lead to the greatest improvement in health status of the population in the United States?

US Medical Care: an Uncertain Future

Using Economics to Study Health Care Issues

Economic Evaluation in Health Care

The Demand for Health and Medical Care

Population Health

The Market for Health Insurance

Managed Care

The Physicians Services Market

The Hospital Services Market

The Market for Pharmaceuticals

Medicare

Medicaid

Medical Care Systems Worldwide

Filters