Page 1 of 144 Success! 1 MHA 707 EXAM C ACTUAL EXAM VERSION 1 & 2 AND A STUDY GUIDE COMPL ETE 400 QUESTIONS AND DETAILED SOLUTIONS LATEST 2024 -2025 UPDATE JUST RELEASED MHA 707 EXAM C VERSION 1 QUESTION: Which of the following statements about the distribution of physicians among specialties is true in the United States? a. There are twice as many generalists as there are specialists. b. The majo rity of physicians specialize in general/family practice. c. There are twice as many specialists as there are generalists. d. The specialty distribution in the United States is similar to that of the rest of the world. - ANSWER -c. There are twice as many s pecialists as there are generalists. QUESTION: Starting salaries for female obstetricians/gynecologists are higher than those of male obstetricians/gynecologists . What is the best explanation for this? a. There are more males in obstetrics/gynecology res idency programs than females. b. The demand for female obstetricians/gynecologists is greater than the demand for male obstetricians/gynecologists . c. The demand for female obstetricians/gynecologists is less than the demand for male obstetricians/gynecol ogists . d. Female obstetricians/gynecologists have more human capital than male obstetricians/gynecologists . - ANSWER -b. The demand for female obstetricians/gynecologists is greater than the demand for male obstetricians/gynecologists . Page 2 of 144 Success! 2 QUESTION: The ra te of return on an investment in medical education: a. will increase with an increase in the availability of student loans. b. is inversely related to the number of years in the profession. c. is much higher than the rate of return on an undergraduate busi ness degree. d. is inversely related to income. e. is inversely related to the length of time spent in formal schooling - ANSWER -e. is inversely related to the length of time spent in formal schooling QUESTION: Suppose the market for nursing services in a local community is so dominated by a single community hospital that, for all practical purposes, it is considered a monopsony. Using the diagram below, answer the question. What is the equilibrium wag e and level of employment under monopsony? a. W0 and E1 b. W2 and E0 c. W0 and E0 d. W0 and E2 e. W1 and E1 - ANSWER -c. W0 and E0 Page 3 of 144 Success! 3 QUESTION: The following diagram depicts the market for physicians' services that is originally in equilibrium at the point wh ere demand and supply (D0 and S0) intersect. As physician supply increases from S0 to S1, an even larger concurrent shift in demand from D0 to D1: a. will increase demand for physicians' services, but not spending. b. will cause overall spending on physi cians' services to increase. c. will result in a new equilibrium at P2 and Q2. d. will result in a decrease in the price of physicians' services. e. will force physicians to limit the number of patients they see. - ANSWER -a. will increase demand for physic ians' services, but not spending. QUESTION: The merger of two community hospitals located in the same geographic market is called: a. a conglomerate merger. b. a leveraged buyout. c. horizontal integration. d. vertical integration. e. a real shame, as one of the hospitals will likely close. - ANSWER -c. horizontal integration. Page 4 of 144 Success! 4 QUESTION: The expanded use of prospective payment in hospitals has changed the nature of competition in that market. Which of the following statements is true? a. After an initial dr op in operating margins shortly after the introduction of diagnosis -related groups (DRGs), Medicare margins have improved and most hospitals are generating 5 -8 percent surpluses on all their Medicare business. b. The switch to diagnosis -related group payme nts in the 1980s has actually had little effect on competition because so much of hospital spending comes from the federal government. c. Savings from prospective payments are substantial and due primarily to fewer hospital admissions and shorter hospital stays. d. Because patients pay such a small percentage of hospital bills, prospective payment has had little effect on hospital operations. - ANSWER -c. Savings from prospective payments are substantial and due primarily to fewer hospital admissions and shorter ho spital stays. QUESTION: Suppose the market for nursing services in a local community is so dominated by a single community hospital that, for all practical purposes, it is considered a monopsony. Using the diagram below, answer the question. If the mark et were perfectly competitive instead of dominated by a monopsonist, what would the equilibrium wage and level of employment be? a. W2 and E0
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