Download EC248 Health Matters Final Exam: Multiple Choice Questions and Answers and more Exams Nursing in PDF only on Docsity!
EC248 Health Matters Final Exam
2024/2025 Entry
Which statement about opportunity cost is NOT true: a) Opportunity cost is the financial value of the forgone opportunity b) Opportunity costs are important because resources are limited. c) Opportunity cost is a fundamental economic concept. d) Opportunity cost emphasizes the true social cost of a policy. - Answers. ✔✔a) Opportunity cost is the financial value of the forgone opportunity Which statement best describes technical efficiency? a) Enables producers to identify the most up to date production technology. b) Maximizes outputs for given inputs conditional on a production technology.
c) Can only be identified when costs of alternative inputs are known. d) Always leads to cost efficiency and allocative efficiency. - Answers. ✔✔b) Maximizes outputs for given inputs conditional on a production technology. Which statement best describes the Pareto Criterion? a) it identifies the best possible allocation b) is a strong economic tool used in policy analysis. c) is successful if winners can compensate losers. d) if strictly applied would lead to policy paralysis. - Answers. ✔✔d) if strictly applied would lead to policy paralysis. Which statement best describes allocative efficiency? a) Allocative efficiency results from technical efficiency. b) Allocative efficiency results from cost-effective efficiency.
c) procedural equity d) distributional efficiency - Answers. ✔✔b) vertical equity Providing free prescription medications for all patients who need them demonstrates a) horizontal equity b) vertical equity c) procedural equity d) distributional efficiency - Answers. ✔✔a) horizontal equity Market power implies a) a well functioning market. b) only market forces set prices. c) an ability to influence market price.
d) perfect competition. - Answers. ✔✔c) an ability to influence market price. Which statement is NOT true about barriers to entry in a market? may occur naturally may arise artificially may be due to large fixed costs will lead to a monopoly - Answers. ✔✔will lead to a monopoly Perfect competition does not rule out externalities market power market failure limited information - Answers. ✔✔limited information
non-satiation - Answers. ✔✔diminishing marginal utility The economic model of consumer choice does not take into account individual preferences individual goals societal goals constraints faced - Answers. ✔✔societal goals Monopsony refers to a single supplier in the market a single buyer in the market a barrier to entry to the market an important policy tool - Answers. ✔✔a single buyer in the market
Asymmetry of information occurs when buyers and sellers are not fully informed it is costly to gather information buyers and sellers have the same information sellers have more information than buyers - Answers. ✔✔sellers have more information than buyers Important aspects of an economic evaluation of a policy include all BUT a viewpoint costs consequences a randomized control trial - Answers. ✔✔a randomized control trial Which economic evaluation method can indicate whether a program is worthwhile?
Cost-Benefit Analysis Cost-Effectiveness Analysis Cost-Utility Analysis All types of evaluation - Answers. ✔✔Cost-Utility Analysis The similarity between Cost-Benefit Analysis, Cost-Effectiveness Analysis and Cost-Utility Analysis is how the consequences are valued how the consequences are measured how costs are measured how the results are reported - Answers. ✔✔how costs are measured The human-capital approach may be used in Cost-Benefit Analysis
Cost-Effectiveness Analysis Cost-Utility Analysis All types of evaluation - Answers. ✔✔Cost-Benefit Analysis _________ is NOT a possible outcome of an economic evaluation Incremental Cost-Effectiveness Ratio Incremental Cost-Utility Ratio Net Monetary Benefit Least Cost Alternative - Answers. ✔✔Least Cost Alternative The social optimum occurs when: total benefits have been maximized. total benefits have been minimized.
use a moderate discount rate use a discount rate equal to the inflation rate - Answers. ✔✔use a low discount rate ____________ refers to the demand for health because an individual derives utility directly from being healthy Investment demand for health Consumption demand for health Derived demand for health Direct demand for health - Answers. ✔✔Consumption demand for health Canadian data show that the rapidly falling rates of mortality for common diseases occurred: with the introduction of formal education of physicians.
before marked increases in living standards were evident. with the introduction of effective medical treatments. before effective medical treatments became available. - Answers. ✔✔before effective medical treatments became available. The education-health gradient finds people of higher levels of education are less healthy, on average, than those of lower levels of education is a causal relationship indicates that investments in education will increase health finds people of higher levels of education are healthier, on average, than those of lower levels of education - Answers. ✔✔finds people of higher levels of education are healthier, on average, than those of lower levels of education The health capital model is:
the introduction of formal medical training. the opening of hospitals to treat patients. the introduction antibiotics. the introduction of surgical procedures. - Answers. ✔✔the introduction antibiotics. The "urban penalty" describes: overcrowding in urban areas relative to rural areas. the squalor in urban areas relative to rural areas. higher mortality rates in urban areas than in rural areas. higher spread of disease in urban areas than in rural areas. - Answers. ✔✔higher mortality rates in urban areas than in rural areas. Researchers believe that the dominant influences on the rapid increase in life expectancy in 19th and 20th centuries were, in chronological order:
modern medicine, public health measures and economic growth. public health measures, increase in physicians, discovery of antibiotics. economic growth, public health measures and modern medicine. increased nutrition, increase in physicians, discovery of antibiotics. - Answers. ✔✔economic growth, public health measures and modern medicine. Which statement best describes the demand for health care the demand for health care is similar to the demand for other services the demand for health care is derived from the demand for health the demand for health care is jointly determined with health the demand for health care is independent of income - Answers. ✔✔the demand for health care is derived from the demand for health
Dr. Smith recommends a life saving procedure that he suspects Jimmy would not want. This is best described as Dr. Smith acting as the patient's agent a perfect patient's agent an imperfect patient's agent the best possible agent. - Answers. ✔✔an imperfect patient's agent Which of the following statement best defines health care? Health care is the set of goods and services provided by health care professionals. Health care is the subset of goods and services primarily intended to maintain or improve health. Health care includes goods and services delivered by health care professionals with the primary purpose of improving health and well- being.
Health care includes the goods and services delivered by individuals with specialized medical expertise. - Answers. ✔✔Health care includes goods and services delivered by health care professionals with the primary purpose of improving health and well-being. Even though Jane is young, she makes sure she gets her flu shot every year. This generates a: selfish externality. negative externality. caring externality. good-specific externality. - Answers. ✔✔selfish externality. Asymmetry of information exists in all the following cases BUT the physician knows how effective chemo is but the patient does not neither the physician nor the patient know how effective chemo will be the patient is afraid of having chemo but does not tell the physician
