Download MHA 710 Healthcare Economics (Exam 1 Part 1 Ch. 1 & 2) 2025-2026 Questions with Answers and more Exams Nursing in PDF only on Docsity!
MHA 710 Healthcare Economics (Exam 1 Part 1
Ch. 1 & 2) 2025 - 2026 Questions with Correct
and Accredited Answers Already A Graded
Louisiana State University
Certain employees are eligible for unemployment compensation if they lose their jobs through no fault of their own. If Jim, a factory worker, will receive compensation of half his regular pay for 52 weeks while he looks for a job, then: A. The unemployment compensation most likely raises Jim's incentive to save while he is working. Unemployment compensation most likely increases Jim's efforts to find a new job. B. The unemployment compensation most likely raises Jim's incentive to save while he is working. Unemployment compensation most likely decreases Jim's efforts to find a new job. C. The unemployment compensation most likely lowers Jim's incentive to save while he is working. Unemployment compensation most likely increases Jim's efforts to find a new job. D. The unemployment compensation most likely lowers Jim's incentive to save while he is working. Unemployment compensation most likely decreases Jim's efforts to find a new job. D. The unemployment compensation most likely lowers Jim's incentive to save while he is working. Unemployment compensation most likely decreases Jim's efforts to find a new job.
Micah has spent $30 for a taxi ride to attend a Colts game. When he arrives at the stadium, he discovers that he left his ticket at home. He doesn't have time to return home to get it. He paid $60 for his ticket, but can buy another one for $80. In deciding whether he should buy another ticket Micah should compare the value he places on attending the game to: A. $ B. $ C. $ D. $ B. $ Trade between countries tends to: A. Reduce specialization and make everyone better off B. Reduce specialization and make everyone worse off C. Raise specialization and make everyone better off D. Raise specialization but make everyone worse off C. Raise specialization and make everyone better off Which of the following is the primary determinant of the standard of living? A. Labor unions B. Productivity C. The amount of labor D. Competition from foreign countries
A. People drive smaller, more fuel-efficient cars B. People take public transportation C. People live close to where they work D. Exxon-Mobile drills fewer oil wells D. Exxon-Mobile drills fewer oil wells Adam Smith would have loved Uber, the company providing an app for smartphones that connects passengers and drivers, because: A. The rides from Uber cars are less expensive than taxis B. Uber cars are more popular than taxis C. The service increases consumer well-being D. The Uber drive does not respond to incentives A public health insurance plan comparable to Medicaid, designed to compete with private insurance Public Option A state in which multiple outcomes are possible but the likelihood of any one outcome is not known Uncertainty
A periodic payment required to purchase an insurance policy Premium What is Medicare? Health insurance for the elderly provided under an amendment to the Social Security Act What is Medicaid? Health insurance for the poor financed jointly by federal and state governments A 1910 report published as part of a critical review of medical education in the U.S. The response of the medical establishment led to significant changes in the accreditation procedures of the medical schools and an improvement in the quality of medical care. Flexner Report The negotiation process whereby representatives of employers and employees agree upon the terms of a labor contract, including wages and benefits. Collective Bargaining
Entitlement programs What is a prospective payment? Payment determined prior to the provision of services. A feature of many managed care organizations that base payment on capitation. A payment method providing a fixed, per capita payment to providers for a specified medical benefits package. Providers are required to treat a well-defined population for a fixed sum of money, paid in advance, without regarding the number or nature of the services provided to each person. Capitation A patient classification scheme based on certain demographic, diagnostic, and therapeutic characteristics developed by Medicare and used to compensate hospitals. Diagnosis-related group An index that assigns weights to various medical services used to determine the relative fees assigned to them. Relative-value scale Retrospective payment
Payment determined after delivery of the good or service. Traditional fee-for-service medicine determines payment retrospectively. Payment determined prior to the provision of services. A feature of many managed care organizations that base payment on capitation. Prospective payment A delivery system that originally integrated the financing and provision of medical care in one organization. Today, the term encompasses different arrangements designed to coordinate services and control costs. Managed care Insurance based on the principle that someone suffering an economic loss receives a payment approximately equal to the size of the loss. Indemnity insurance Horizontal integration The merger of two or more firms that produce the same good or service Expansion to secure elements of the supply chain to ensure availability of resources to produce a product of service. Examples might include the acquisition of a primary care clinic by a hospital.
Accountable care organization (ACO) What does ACO stand for? Accountable care organization An approach to optimizing health system performance designed along three dimensions: enhancing the patient experience, improving population health, and reducing per capita spending. Triple aim What is an Integrator? An entity responsible for consolidating the resources required to achieve the Triple Aim A requirement that insurers must issue a policy to anyone who applies for one with no consideration of health status. Guaranteed Issue A feature of an insurance policy that requires the insurer to guarantee renewal of the policy as long as premiums are paid, regardless of any changes in the health status of the policy holder.
Guaranteed renewability A digital marketplace available in every state where individuals can shop for health insurance and receive government subsidies making it more affordable. Insurance exchange What is Game? Bending the rules of the game in order to manipulate the outcome A situation where different parties in a transaction have access to different information that may be relevant to the exchange, placing one at a distinct disadvantage in the trade. Adverse selection The amount earned by a factor of production in excess of its opportunity cost. Typically, the supply of the factor is fixed. Economic rent How does a firm become a natural monopoly? A firm becomes a natural monopoly based on its ability to provide a good or service at a lower cost than anyone else and satisfy consumer demand completely
A. 20%
B. 30%
C. 40%
D. 50%
E. 60%
C. 40%
By 2020, what was the forecasted percentage amount of health care spending paid by individuals? A. 6% B. 10.4% C. 11.6% D. 17.4% E. Whatever amount we are currently spending B. 10.4% The "invisible hand" using Adam Smith's terminology refers to: A. Government control oft he market B. Market forces working through the price mechanism C. The money supply that serves to keep economy working smoothly D. The role of innovation in maintaining a steady rate of growth
E. "Behind-the-scenes" policy making to influence how markets allocate scarce resources B. Market forces working through the price mechanism According to recent public opinion polls, what percentage of Americans are satisfied with the quality of the medical care they receive? A. 15% B. 40% C. 65% D. 70% E. 90% D. 70% According to the economic theory, what is the optimal percentage of GDP to be spent on medical care? A. 6% B. 8% C. 10% D. 12% E. There is no widely accepted way to determine the optimal percentage E. There is no widely accepted way to determine the optimal percentage
A. Risk sharing B. Horizontal integration C. ACOs D. Iron Triangle C. ACOs (Accountable care organizations) 5 Elements of the ACA
- Expanded insurance regulations
- Expanded Insurance Coverage
- Personal Responsibility Mandate
- Changes to medicare
- New Federal Taxes Which of the following were part of the original ACA legislation enacted in 2010? Select all that apply A. Expansion of Medicaid B. Spending cuts in Medicare C. New Federal Taxes D. Pre-existing conditions exclusions A. Expansion of Medicaid B. Spending cuts in Medicare C. New Federal taxes
Which of the following categories accounts for the largest share of health care spending in the U.S.? A. Hospital care B. Physicians' services C. Public health care D. Prescription drugs A. Hospital care Which of the following are considered to be a source of waste in health care spending? Select all that apply A. Excessive administration costs B. Fraud and abuse C. High prices D. Substantial low-income population A. Excessive administration costs B. Fraud and abuse C. High prices Which of the following statements is an explanation for why the U.S. spends so much on health care? A. Innovation in medical technology
3 goals of Iron Triangle
- Increase access
- Improve quality
- Lower cost 3 Goals of Triple Aim
- Advance population health
- Lower per capita cost
- Improve patient experience of care Long term trends in health care reform focus on (3)
- Medical care delivery
- Payment mechanism
- Policy and conceptual approaches The monetary value of the goods and services produced in a country during a given time period, usually a year Gross domestic product (GDP)
A health insurance arrangement where the individual, or agent of the individual, pays a set premium to a third party (an insurance company, managed care organization, or the government), which in turn pays for health care services Third-party payers Routine medical care and screening generally provided by physicians specializing in family practice, general internal medicine, and pediatrics Primary and preventative care Readily available and easy-to-understand information on the actual prices paid for medical care services. The actual price paid is essential if consumers are to value and rank alternative treatment options and make informed decisions on the care they receive. Price transparency The practice of selling the same good or service to two different consumers for different prices. The price differential is not based on differences in cost. Price discrimination Cost to society stemming from a market failure to efficiently allocate resources. The resulting equilibrium fails to produce the socially optimum quantity of a good or service. Often consumed by government actions such as taxes, subsidies, price controls, or other restrictions on the market.
