Question 1

Starting salaries for female OB/GYNs are higher than those of male OB/GYNs.What is the best explanation for this?

Accepted Answer

A) Female OB/GYNs have more human capital than male OB/GYNs. 
B) Female OB/GYNs are smarter than male OB/GYNs. 
C) The demand for female OB/GYNs is greater than the demand for male OB/GYNs. 
D) The demand for female OB/GYNs is less than the demand for male OB/GYNs. 
E) More males are in OB/GYN residency programs than females. 
A) Female OB/GYNs have more human capital than male OB/GYNs. 
B) Female OB/GYNs are smarter than male OB/GYNs. 
C) The demand for female OB/GYNs is greater than the demand for male OB/GYNs. 
D) The demand for female OB/GYNs is less than the demand for male OB/GYNs. 
E) More males are in OB/GYN residency programs than females. C

Question 2

Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients.This practice of self-referral is an example of

Accepted Answer

A) moral hazard. 
B) adverse selection. 
C) res ipsa loquitor. 
D) physician-induced demand. 
E) cognitive dissonance. 
A) moral hazard. 
B) adverse selection. 
C) res ipsa loquitor. 
D) physician-induced demand. 
E) cognitive dissonance. D

Question 3

The observed variations in practice patterns in different regions of the country are difficult to eliminate

Accepted Answer

A) because of the many alternative treatment options available for most ailments. 
B) due to the localized nature of most medical practice. 
C) because it is difficult to change the preferences of physicians and patients. 
D) the observed variations are so minor that they are of little concern to policy makers. 
E) responses a, b, and c are all true. 
A) because of the many alternative treatment options available for most ailments. 
B) due to the localized nature of most medical practice. 
C) because it is difficult to change the preferences of physicians and patients. 
D) the observed variations are so minor that they are of little concern to policy makers. 
E) responses a, b, and c are all true. E

Question 4

The rate of return on an investment in medical education

Accepted Answer

A) is inversely related to the length of time spent in formal schooling. 
B) is inversely related to income. 
C) will increase with an increase in the availability of student loans. 
D) is much higher than the rate of return on an undergraduate business degree. 
E) is inversely related to the number of years in the profession. 
A) is inversely related to the length of time spent in formal schooling. 
B) is inversely related to income. 
C) will increase with an increase in the availability of student loans. 
D) is much higher than the rate of return on an undergraduate business degree. 
E) is inversely related to the number of years in the profession.

Question 5

Legislation considered by the 104th Congress to restrict legal immigration would have

Accepted Answer

A) improved employment prospects for native-born Americans. 
B) allowed more Americans trained abroad to compete for openings in U.S.residency programs. 
C) raised the costs of operating many of the nation's rural and inner-city hospitals. 
D) had little effect on medical markets since so few physicians practicing medicine in the U.S are foreigners. 
E) surprised many policy makers if it had passed since the 104th Congress found it difficult to agree on much of anything. 
A) improved employment prospects for native-born Americans. 
B) allowed more Americans trained abroad to compete for openings in U.S.residency programs. 
C) raised the costs of operating many of the nation's rural and inner-city hospitals. 
D) had little effect on medical markets since so few physicians practicing medicine in the U.S are foreigners. 
E) surprised many policy makers if it had passed since the 104th Congress found it difficult to agree on much of anything.

Question 6

Which of the following statements about the distribution of physicians among specialties is true in the United States?

Accepted Answer

A) The majority of physicians specialize in general/family practice. 
B) There are twice as many generalists as there are specialists. 
C) There are twice as many specialists as there are generalists. 
D) The specialty distribution in the U.S.is similar to that of the rest of the world. 
E) None of the above. 
A) The majority of physicians specialize in general/family practice. 
B) There are twice as many generalists as there are specialists. 
C) There are twice as many specialists as there are generalists. 
D) The specialty distribution in the U.S.is similar to that of the rest of the world. 
E) None of the above.

Question 7

Suppose the market for nursing services in a local community is so dominated by a singly community hospital that for all practical purposes it is considered a monopsony.Using the diagram below
  
-If the market were perfectly competitive instead of dominated by a monopsonist, what would the equilibrium wage and level of employment be?

Accepted Answer

A) W1 and E1. 
B) W2 and E0. 
C) W0 and E0. 
D) W0 and E1. 
E) W0 and E2. 
A) W1 and E1. 
B) W2 and E0. 
C) W0 and E0. 
D) W0 and E1. 
E) W0 and E2.

Question 8

Physicians salaries increased substantially over the decade 1995-2005 from an average of $215,000 to $315,000.What is the best explanation for this?

Accepted Answer

A) Physicians were smarter in 2005 than in 1995. 
B) The supply of physicians has increased. 
C) The supply of physicians has decreased. 
D) The demand for physicians has increased. 
E) The demand for physicians has decreased. 
A) Physicians were smarter in 2005 than in 1995. 
B) The supply of physicians has increased. 
C) The supply of physicians has decreased. 
D) The demand for physicians has increased. 
E) The demand for physicians has decreased.

Question 9

Surgical specialists earn more than general/family practice physicians.Which of the following statements is not true regarding this income differential?

Accepted Answer

A) Surgeons earn more because their practice costs, including medical malpractice insurance is higher. 
B) Surgeons earn more to compensate them for the extra years spent as residents. 
C) Physicians' incomes are determined to a large extent by supply and demand conditions with respect to each specialty. 
D) Surgeons will always earn more than general practitioners because they are smarter than general practitioners. 
E) Surgeons earn more than general practitioners because cutting into people is messy. 
A) Surgeons earn more because their practice costs, including medical malpractice insurance is higher. 
B) Surgeons earn more to compensate them for the extra years spent as residents. 
C) Physicians' incomes are determined to a large extent by supply and demand conditions with respect to each specialty. 
D) Surgeons will always earn more than general practitioners because they are smarter than general practitioners. 
E) Surgeons earn more than general practitioners because cutting into people is messy.

Question 10

Which of the following would increase the supply of physicians?

Accepted Answer

A) Increasing the cost of attending medical school. 
B) More scholarships and grants to cover medical school tuition. 
C) Increasing the medical school entrance requirements to include 15 hours of economics. 
D) Making it easier for plaintiffs to prove medical malpractice claims. 
E) Paying medical schools to eliminate residency opportunities in some specialties. 
A) Increasing the cost of attending medical school. 
B) More scholarships and grants to cover medical school tuition. 
C) Increasing the medical school entrance requirements to include 15 hours of economics. 
D) Making it easier for plaintiffs to prove medical malpractice claims. 
E) Paying medical schools to eliminate residency opportunities in some specialties.

Question 11

Empirical studies that suggest differences in utilization rates between fee-for-service and managed care plans

Accepted Answer

A) are unreliable due to statistical biases. 
B) conclude that financial incentives are not the reason for differences in the amount of care physician provide. 
C) show no differences in health status among patient groups. 
D) are unable to differentiate between the impacts due to financial incentives and those due to clinical rules. 
A) are unreliable due to statistical biases. 
B) conclude that financial incentives are not the reason for differences in the amount of care physician provide. 
C) show no differences in health status among patient groups. 
D) are unable to differentiate between the impacts due to financial incentives and those due to clinical rules.

Question 12

What is the most significant cost of attending medical school?

Accepted Answer

A) Tuition and fees. 
B) Books and incidentals. 
C) The income foregone. 
D) Room and board. 
E) Pain and suffering. 
A) Tuition and fees. 
B) Books and incidentals. 
C) The income foregone. 
D) Room and board. 
E) Pain and suffering.

Question 13

Input demand is called derived demand because

Accepted Answer

A) demand for an input is derived from demand for the product or service it produces. 
B) demand for an input is derived from its availability in the input market. 
C) demand for the output produced is also derived from consumer demand. 
D) input demand actually determines how much output is produced. 
A) demand for an input is derived from demand for the product or service it produces. 
B) demand for an input is derived from its availability in the input market. 
C) demand for the output produced is also derived from consumer demand. 
D) input demand actually determines how much output is produced.

Question 14

Suppose the number of medical school graduates continues to increase over the next decade.Which of the following is true?

Accepted Answer

A) Physicians' salaries must fall. 
B) Physicians' salaries must rise. 
C) Physicians' salaries will fall only if the demand for medical services falls. 
D) Physicians' salaries will fall if the demand for medical services rises more than the supply of physicians rises. 
E) Physicians' salaries will rise if the demand for medical services rises more than the supply of physicians rises. 
A) Physicians' salaries must fall. 
B) Physicians' salaries must rise. 
C) Physicians' salaries will fall only if the demand for medical services falls. 
D) Physicians' salaries will fall if the demand for medical services rises more than the supply of physicians rises. 
E) Physicians' salaries will rise if the demand for medical services rises more than the supply of physicians rises.

Question 15

An important element in estimating the present value of an investment is the calculation of the discount factor.The discount factor may be expressed as _______ where r is the discount rate and n is the number of years the investment is held.

Accepted Answer

A) (1 + r)n 
B) (1 + n)r 
C) 1/(1 + r)n 
D) 1/(1 + n)r 
A) (1 + r)n 
B) (1 + n)r 
C) 1/(1 + r)n 
D) 1/(1 + n)r

Question 16

Federal government involvement in training physicians

Accepted Answer

A) is limited to financing indigent care at teaching hospitals. 
B) begins with the accreditation of medical schools and extends to physicians' licensing. 
C) is extensive with physicians receiving an average of over $70,000 in subsidies by the time they finish their residency programs. 
D) effectively limits the number of students admitted to medical school each year. 
E) all of the above are true. 
A) is limited to financing indigent care at teaching hospitals. 
B) begins with the accreditation of medical schools and extends to physicians' licensing. 
C) is extensive with physicians receiving an average of over $70,000 in subsidies by the time they finish their residency programs. 
D) effectively limits the number of students admitted to medical school each year. 
E) all of the above are true.

Question 17

Suppose the market for nursing services in a local community is so dominated by a singly community hospital that for all practical purposes it is considered a monopsony.Using the diagram below
  
-What is the equilibrium wage and level of employment under monopsony?

Accepted Answer

A) W1 and E1. 
B) W2 and E0. 
C) W0 and E0. 
D) W0 and E1. 
E) W0 and E2. 
A) W1 and E1. 
B) W2 and E0. 
C) W0 and E0. 
D) W0 and E1. 
E) W0 and E2.

Starting salaries for female OB/GYNs are higher than those of male OB/GYNs.What is the best explanation for this?

Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients.This practice of self-referral is an example of

The observed variations in practice patterns in different regions of the country are difficult to eliminate

The rate of return on an investment in medical education

Legislation considered by the 104^th Congress to restrict legal immigration would have

Which of the following statements about the distribution of physicians among specialties is true in the United States?

Physicians salaries increased substantially over the decade 1995-2005 from an average of $215,000 to $315,000.What is the best explanation for this?

Surgical specialists earn more than general/family practice physicians.Which of the following statements is not true regarding this income differential?

Which of the following would increase the supply of physicians?

Empirical studies that suggest differences in utilization rates between fee-for-service and managed care plans

What is the most significant cost of attending medical school?

Input demand is called derived demand because

Suppose the number of medical school graduates continues to increase over the next decade.Which of the following is true?

An important element in estimating the present value of an investment is the calculation of the discount factor.The discount factor may be expressed as _______ where r is the discount rate and n is the number of years the investment is held.

Federal government involvement in training physicians

Suppose the market for nursing services in a local community is so dominated by a singly community hospital that for all practical purposes it is considered a monopsony.Using the diagram below -What is the equilibrium wage and level of employment under monopsony?

Usmedical Care: A System in Transition

Using E Conomics to Study Health Care Issues

Analyzing Medical Care Markets

Economic Evaluation in Health Care

The De Mand for Health and Medical Care

The Market for Health Insurance

Managed Care

The Hospital Services Market

The Market for Pharmaceuticals

Confounding Factors

Policies That Enha Nce Access

Policies to Contain Costs

Medical Care Systems Worldwide

Filters

Exam 8: The Physicians Servic ES Market

Starting salaries for female OB/GYNs are higher than those of male OB/GYNs.What is the best explanation for this?

Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients.This practice of self-referral is an example of

The observed variations in practice patterns in different regions of the country are difficult to eliminate

The rate of return on an investment in medical education

Legislation considered by the 104th Congress to restrict legal immigration would have

Which of the following statements about the distribution of physicians among specialties is true in the United States?

Physicians salaries increased substantially over the decade 1995-2005 from an average of $215,000 to $315,000.What is the best explanation for this?

Surgical specialists earn more than general/family practice physicians.Which of the following statements is not true regarding this income differential?

Which of the following would increase the supply of physicians?

Empirical studies that suggest differences in utilization rates between fee-for-service and managed care plans

What is the most significant cost of attending medical school?

Input demand is called derived demand because

Suppose the number of medical school graduates continues to increase over the next decade.Which of the following is true?

An important element in estimating the present value of an investment is the calculation of the discount factor.The discount factor may be expressed as _______ where r is the discount rate and n is the number of years the investment is held.

Federal government involvement in training physicians

Suppose the market for nursing services in a local community is so dominated by a singly community hospital that for all practical purposes it is considered a monopsony.Using the diagram below -What is the equilibrium wage and level of employment under monopsony?

Usmedical Care: A System in Transition

Using E Conomics to Study Health Care Issues

Analyzing Medical Care Markets

Economic Evaluation in Health Care

The De Mand for Health and Medical Care

The Market for Health Insurance

Managed Care

The Hospital Services Market

The Market for Pharmaceuticals

Confounding Factors

Policies That Enha Nce Access

Policies to Contain Costs

Medical Care Systems Worldwide

Filters

Legislation considered by the 104^th Congress to restrict legal immigration would have