Question 1

While studying health care economics,the nursing professor explains to a class that the economic principle of opportunity costs means that

Accepted Answer

A)  economic decisions are based on the best opportunity that arises.
B)  free market failure occurs when efficient use of resources is lacking.
C)  satisfying one desire eliminates the possibility of satisfying another.
D)  we make our decisions based on opportunities to benefit others. C

Question 2

A nurse performing a technology assessment understands that the results of the assessment will be used to

Accepted Answer

A)  compare different brands of equipment.
B)  determine whether up-to-date items are being used.
C)  distribute technology evenly across units.
D)  make decisions on resource allocation. D

Question 3

An insurance company's internal statistics show that the company is losing a great deal of money processing small,frequent claims submitted by its customers.The company accountant suggests that the best way to decrease this loss is to

Accepted Answer

A)  delay payment until the claims reach a set figure.
B)  educate customers on how much these claims cost.
C)  increase the deductible customers must satisfy.
D)  refuse to accept claims below a certain amount. C

Question 4

A chief nursing officer (CNO)is concerned about the ongoing nursing shortage and wants to implement strategies to keep it from getting worse.Which action by the CNO would best meet this goal?

Accepted Answer

A)  Create a career ladder for registered nurses.
B)  Institute an across-the-board wage hike.
C)  Offer tuition reimbursement at area colleges.
D)  Provide perks,such as unit holiday parties.

Question 5

A nurse economist is explaining to a class that the health care market exists in a state of "market failure" because

Accepted Answer

A)  complex variables prevent a consensus on health care "production."
B)  health care fails to meet the needs of its customers and consumers.
C)  more health care practices are failing economically in this market.
D)  practices suffer as their investments in the stock market fail to grow.

Question 6

A practicing nurse is interested in health care economics.To create an environment where health care more closely resembles the consumer market,this nurse would place high priority on activities revolving around

Accepted Answer

A)  educating patients and families.
B)  exploring the costs of treatment.
C)  understanding payment options.
D)  using less expensive supplies.

Question 7

A nurse wishes to get a job in a large city with many hospitals from which to choose but is dismayed to learn that the wages for nurses are nearly as low in the city as in the rural area where the nurse lives.The nurse concludes that

Accepted Answer

A)  city hospitals have agreed on wage levels for nurses.
B)  demand for nurses in the city is similar to the rural area.
C)  state government has mandated wage scales for nurses.
D)  the cost of living in the city is similar to the rural area.

Question 8

A nurse realizes that nurse-run clinics demonstrate increasing economic value in nursing because they

Accepted Answer

A)  allow these nurses to set their own salaries.
B)  create value by filling unmet health needs.
C)  focus on nurses' economic competitiveness.
D)  provide new job opportunities for nurses.

Question 9

A state nurses association has convinced hospitals in that state to offer very attractive wage and benefits packages to nurses.To determine whether this strategy is working to provide a long-term solution to the nursing shortage,the association would measure the

Accepted Answer

A)  comparative RN vacancy rates before and after the change.
B)  hospitals' use of agency personnel to fill nursing positions.
C)  number of students admitted to nursing schools in that state.
D)  percentage of nurses stating on a survey that they work second jobs.

Question 10

A nurse is explaining Medicaid and Medicare to a patient and describes the biggest difference in the programs as being the

Accepted Answer

A)  duration of benefits.
B)  health services provided.
C)  level of administration.
D)  waiting period for coverage.

Question 11

A nursing manager wants to be involved in activities that would systematically improve quality care.The manager would best accomplish this by

Accepted Answer

A)  ensuring that temporary agency nurses fill open positions.
B)  hiring only baccalaureate-prepared nurses on that unit.
C)  preparing cost estimates for a new telemetry system.
D)  teaching nurses on the unit to use positive conflict-resolution skills.

Question 12

A chief nursing officer (CNO)wants to respond to a threatened reduction in nursing positions in a hospital where financial conditions are poor.Which action by the CNO would be best?

Accepted Answer

A)  Compare nurse-patient ratios nationwide,describing the impact of layoffs.
B)  Hire a lobbyist to put political pressure on the hospital's administration.
C)  Prepare a cost-benefit analysis of the effect of nursing care in that hospital.
D)  Use a cost-minimization strategy to show how nursing costs can decrease.

Question 13

A student is discussing the impact of magnet hospitals as an example of positive-sum competition.The student would best describe magnet hospitals' contribution to this model as

Accepted Answer

A)  a workplace culture encouraging collegiality balanced with autonomy for best care.
B)  having a positive-sum revenue stream using technologically advanced practice.
C)  providing a quantitative analysis of the value of nursing care to stakeholders.
D)  having the ability to compete within the health care marketplace in a positive manner.

Question 14

At a rally for better health care coverage,a nurse hears someone say that government-sponsored health programs are inherently unfair.What statement best justifies this position?

Accepted Answer

A)  Government-sponsored plans have no system of ensuring accountability.
B)  Taxes should not be used for anything other than running the government.
C)  The people who pay the most in taxes often get the fewest benefits.
D)  There are no tax deductions for the contributions made to the plans.

Question 15

The nurse is explaining the American health care system to a patient from another country that has government-sponsored health care.The nurse would explain that one driving force for private insurance has been

Accepted Answer

A)  consumer-driven markets demanding insurance.
B)  necessary rationing of scarce health care resources.
C)  the lack of government involvement in health care.
D)  uncertainty related to the need for medical care.

Question 16

The nurse studying health care economics understands that a system that valued attaining competitive advantage as its primary goal would be classified as operating in the model of _____-sum competition.

Accepted Answer

A)  negative
B)  normative
C)  positive
D)  zero

Question 17

An economist explains that consumerism is not a preferred mechanism for the health care market because of the

Accepted Answer

A)  ethical viewpoint that equal access to health care is a universal human right.
B)  inability of most people to save for or borrow enough money to pay for care.
C)  trend for prices of health care goods and services that continue to skyrocket.
D)  variability in people's ability to articulate current and future health care needs.

Question 18

A student is explaining the Health Insurance Marketplace to a relative.What information does the student provide? (Select all that apply. )

Accepted Answer

A)  Available at both the state and federal levels
B)  Publishes quality-related data for insurers
C)  Provides information on types of insurance available
D)  Shows consumers if they are eligible for subsidies
E)  Penalties for the noninsured are set by the Centers for Medicare and Medicaid

Question 19

The Director of Nursing (DON)at a large urban hospital is tasked with increasing the hospital's profits and improving quality.What action by the DON is best?

Accepted Answer

A)  Engage in monopsony with regional hospitals.
B)  Hire more nonprofessional ancillary staff.
C)  Implement policies to prevent hospital-acquired infections.
D)  Purchase capital budget items only when necessary.

Question 20

In trying to understand current problems in today's health care environment,the nurse could reframe the discussion as a problem created by

Accepted Answer

A)  competing interests of market and governmental forces.
B)  tension between for-profit and not-for-profit institutions.
C)  too many different agencies providing the same services.
D)  unchecked rises in providers' salaries and fees for service.

Exam 7: Economic Issues in Nursing and Health Care