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LSUS MHA 710 Economics Exam 1- Questions and Correct Answers
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LSUS MHA 710 Economics Exam 1- Questions and Correct Answers
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LSUS MHA 710 Economics Exam 1Which of the following represents the largest category of health care spending in the United States? -
Answer -Hospital Care
The direct effect of a shortage of hospital beds in a hospital services market is: - Answer -Upward
pressure on the price of a hospital stay.
All of the following will cause a shift in the medical care supply curve, except: - Answer -A change in the
percentage of the population with health insurance.
Assuming providers will accommodate patient desires, what effect would a binding price ceiling have on
the health care market? - Answer -Price will decrease to adhere to the price ceiling & quantity will
increase.
Suppose the U.S. Food & Drug Administration restricts the amount of prescription opiates produced &
sold in the U.S. market. What is the likely effect on the market for drugs used to control chronic pain the
United States? - Answer -The price of prescription opiates will increase & the quantity consumed will
decrease.
The following graph depicts the market for CT scanners in the United States:
, Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per machine. If the government
places a $100,000 excise tax on each new scanner sold, the new equilibrium price will be: - Answer -less
than $1.30 million.
Suppose robotic technology improves the results of abdominal surgery—less time to perform the
surgery, faster recovery times, and fewer mistakes. What is the impact on the market for abdominal
surgery using this new technology? - Answer -Demand for robot-assisted surgery will increase, & prices
will rise.
If a hospital is experiencing economies of scale: - Answer -Its average cost curve is negatively sloped as
output increases.
Which of the following does NOT contribute to wasteful spending in medical care? - Answer -Price
transparency.
Which of the following statements is based on positive analysis? - Answer -High health care prices are
one of the primary reasons that the United States spends more on medical care than other countries.
Which of the following is NOT considered to be a factor in the recent slowing of health care spending? -
Answer -Growing U.S. gross domestic product (GDP).
If two women receive the same hip replacement procedure at a hospital, but are charged differently, it
is an example of: - Answer -Price discrimination.
Which of the following is NOT a personal health expenditure? - Answer -Program administration.
Inoculation programs against certain disease such as small pox, polio, & whooping cough create: -
Answer -Positive externalities in consumption.
The cost to society resulting from taxation to finance government spending is called: - Answer -
deadweight loss.
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