Dewar MIDT exam 2e

Dewar MIDT

Multiple Response

1. U.S. health system reform efforts have attempted to correct which of the following issues?

[1] Poor access

[2] Competence of healthcare personnel

[3] Higher costs of technologically driven care

[4] Variable quality in the most advanced healthcare system in the world

[5] Focus on prevention rather than treatment

<Complexity: Difficult>

<A-head: System Issues>

<Subject: Chapter 1, Page 3>

Multiple Response

2. American healthcare surveys have found that the majority of consumers rate their health care as “excellent” or “very good.” Those consumers who demonstrated poorer ratings tend to suffer from which of the following?

[1] No health insurance

[2] Incurable medical conditions

[3] No regular healthcare providers

[4] Unwillingness to seek medical care

[5] No trust in the U.S. healthcare system

<Complexity: Difficult>

<A-head: System Issues>

<Subject: Chapter 1, Page 3>

Multiple Response

3. A high level of satisfaction can be a double-edged sword in that increased consumer satisfaction with care is associated with which of the following?

[1] Increased inpatient healthcare utilization

[2] Increased mortality

[3] Increased quality of healthcare

[4] Increased access to care

[5] Increased pharmaceutical expenditures

<Complexity: Difficult>

<A-head: System Issues>

<Subject: Chapter 1, Page 3>

Fill-in-the-Blank

4. Regardless of how population health is defined or measured, the concept is essential for determining and reducing health ____________.

<Complexity: Moderate>

<A-head: Health Status>

<Subject: Chapter 1, Page 4>

Fill-in-the-Blank

5. As concerns rise over the increasing size of the health economy relative to other sectors, as well as the relatively poor health of the population, _______________________ becomes an increasingly important tool in the study of factors that affect the health and health care of the American public.

<Complexity: Moderate>

<A-head: Summary>

<Subject: Chapter 1, Page 5>

True/False

6. On both the population and individual perspectives, the health status of the U.S. population is excellent with decreasing incidence and prevalence of chronic disease across the life span and relatively low infant mortality rates.

<Complexity: Easy>

<A-head: Health Status>

<Subject: Chapter 1, Page 4>

Multiple Response

7. Health economists examine a wide range of issues, including which of the following?

[1] Regulatory oversight of the healthcare sector

[2] Nature and production of health

[3] Demand for health care

[4] Economic evaluation of policies and interventions

[5] Competence of healthcare providers

<Complexity: Difficult>

<A-head: Health Economics as a Field of Economics>

<Subject: Chapter 2, Page 9>

Multiple Response

8. Which of the following are factors that determine the supply of health care?

[1] Input markets

[2] Health insurance

[3] Prices of substitute services

[4] Technology

[5] Managerial effectiveness

<Complexity: Difficult>

<A-head: Health Economics as a Field of Economics>

<Subject: Chapter 2, Page 9>

Fill-in-the-Blank

9. The implication of ______________________ is that the choices made are optimal for achieving the intended goals of the producer or consumer.

<Complexity: Moderate>

<A-head: The Economic Framework>

<Subject: Chapter 2, Page 11>

Matching

10. Match the following terms to the appropriate definition.

[1] Established when demand and supply functions for health care intersect with one another.

[2] The additional benefit received from consuming the next unit of the good or service.

[3] Recognizes that choices are made incrementally and optimal decision making is based on the incremental benefits and the costs of an alternative.

[4] Measures how well resources are being used to maximize the production of goods and services.

<Complexity: Moderate>

<A-head: Key Economic Concepts>

<Subject: Chapter 2, Page 10>

Multiple Choice

11. Natural monopoly, oligopoly, externalities of production or consumption, public goods, and incomplete information are all sources of which of the following of the free market?

[1] Market economy

[2] Market failure

[3] Market stability

[4] Market predictability

<Complexity: Moderate>

<A-head: Key Economic Concepts>

<Subject: Chapter 2, Page 10>

Multiple Choice

12. Which of the following is a crucial component of determining and ensuring efficiency in the market?

[1] Opportunity costs

[2] Marginal costs

[3] Direct costs

[4] Indirect costs

<Complexity: Moderate>

<A-head: Key Economic Concepts>

<Subject: Chapter 2, Page 10>

Multiple Choice

13. Which of the following creates a barrier to entry in the marketplace where only certain types of firms may be able to compete in the market due to quality or infrastructure goals in the market?

[1] Licensure

[2] Imperfect information

[3] Regulations for health and safety

[4] Collusion

<Complexity: Moderate>

<A-head: Perfect Competition>

<Subject: Chapter 3, Page 18>

Multiple Choice

14. Which of the following creates a barrier to entry because it reduces the number of providers in the market and decreases potential competition?

[1] Licensure

[2] Imperfect information

[3] Regulations for health and safety

[4] Collusion

<Complexity: Moderate>

<A-head: Perfect Competition>

<Subject: Chapter 3, Page 18>

True/False

15. A perfectly competitive market allocates resources efficiently when all social costs and benefits are internalized by those engaged in the market in the form of marginal private benefit and marginal private cost.

<Complexity: Easy>

<A-head: Summary>

<Subject: Chapter 3, Page 20>

Multiple Choice

16. Which of the following measures the difference between the actual price received by the seller and the required price as reflected by the marginal private cost for each additional unit produced?

[1] Consumer surplus

[2] Producer surplus

[3] Distributor surplus

[4] Private surplus

<Complexity: Moderate>

<A-head: Supply and Demand>

<Subject: Chapter 3, Page 18>

Multiple Choice

17. Which of the following serves as a rationing device, distributing goods and services to consumers who value them most, denoting the willingness to pay for the good or service in question?

[1] Supply

[2] Demand

[3] Profits

[4] Price

<Complexity: Moderate>

<A-head: Comparative Statics>

<Subject: Chapter 3, Page 19>

Fill-in-the-Blank

18. The _____________________ states that every competitive equilibrium is Pareto efficient.

<Complexity: Moderate>

<A-head: Introduction>

<Subject: Chapter 4, Page 23>

Fill-in-the-Blank

19. The implication is that ___________________ goods tend to have large marginal external benefits, which makes them socially desirable but privately unprofitable to provide.

<Complexity: Moderate>

<A-head: Public Goods>

<Subject: Chapter 4, Page 24>

Multiple Choice

20. Which of the following, produced by a monopoly, implies that the monopoly underproduces a product and therefore misaligns society’s scarce resources?

[1] Deadweight loss

[2] Market failure

[3] Consumer demand

[4] Produce demand

<Complexity: Moderate>

<A-head: The Monopoly Model>

<Subject: Chapter 4, Page 26>

True/False

21. Exclusive control over an input or economies of scale can lead to barriers because the other firms will not have the resources to make the substitute product.

<Complexity: Easy>

<A-head: The Monopoly Model>

<Subject: Chapter 4, Page 26>

Multiple Response

22. Product differentiation is a result of which of the following?

[1] Barriers to entry

[2] Regulatory controls

[3] Advertising

[4] Real or perceived quality

[5] Preferred location

<Complexity: Difficult>

<A-head: The Monopoly Model>

<Subject: Chapter 4, Page 27>

Multiple Choice

23. Which of the following can point out real differences between products but is most often used to create perceived differences across goods or services?

[1] Marketing

[2] Advertising

[3] Branding

[4] Copyrighting

<Complexity: Moderate>

<A-head: Monopolistic Competition>

<Subject: Chapter 4, Page 28>

Matching

24. Match the following terms to the appropriate definition.

[1] A state of allocation of resources in which it is possible to make any one individual better off without making at least one individual worse off.

[2] Additional revenue generated from selling one more unit of a good or service.

[3] Involves a market model with a few large firms and relatively high barriers to entry.

[4] Sole provider of a good or service in a well-defined market with no close substitutes.

<Complexity: Difficult>

<A-head: The Monopoly Model>

<Subject: Chapter 4, Page 25>

Multiple Response

25. Which of the following prohibit the general public from taking action even when wealth transfers to the special interest groups are known?

[1] Legislation

[2] Organization

[3] Time costs

[4] Collusion

[5] Politics

<Complexity: Difficult>

<A-head: Theories of Government Intervention>

<Subject: Chapter 5, Page 34>

Multiple Choice

26. The government imposing a tax on the emissions of firms to reduce the level of air or water pollution in an area is an example of which of the following actions to promote efficiency and equity?

[1] Providing public goods

[2] Correcting for externalities

[3] Imposing regulations

[4] Operating public enterprises

<Complexity: Moderate>

<A-head: Forms of Government Intervention>

<Subject: Chapter 5, Page 34>

Matching

27. Match the term with the appropriate description.

[1] Prohibits independent physicians from discussing their pricing policies to prevent monopolistic practices.

[2] Breaches in electronic health records can not only violate confidentiality but also create economic losses due to resulting job loss in regard to discovery of a particular health issue of the employed person.

[3] Programs that are generally funded by mandatory contributions through some form of taxation.

[4] States that the political venue can be treated like any private market for goods and services.

<Complexity: Difficult>

<A-head: Forms of Government Intervention>

<Subject: Chapter 5, Page 34>

True/False

28. A series of Supreme Court decisions beginning in the 1970s have interpreted that antitrust laws do not apply to hospitals.

<Complexity: Easy>

<A-head: Forms of Government Intervention>

<Subject: Chapter 5, Page 35>

Fill-in-the-Blank

29. When market failure in health care arises due to imperfect information, the government may help to correct the problem via provision of ______________________.

<Complexity: Moderate>

<A-head: Forms of Government Intervention>

<Subject: Chapter 5, Page 35>

True/False

30. For most types of health care, the most important and interesting characteristic is that they are intended to alter health.

<Complexity: Easy>

<A-head: Introduction>

<Subject: Chapter 6, Page 41>

Multiple Choice

31. In Grossman’s model, health is both demanded and produced by which of the following?

[1] Society

[2] Environment

[3] Technology

[4] Individuals

<Complexity: Moderate>

<A-head: Health as a Form of Human Capital>

<Subject: Chapter 6, Page 42>

Multiple Response

32. The total cost of producing any health stock includes which of the following?

[1] Cost of offsetting depreciation

[2] Cost of research and development

[3] Cost of incremental units of health stock

[4] Cost of advertising and branding

<Complexity: Difficult>

<A-head: Health as a Form of Human Capital>

<Subject: Chapter 6, Page 43>

Fill-in-the Blank

33. One can think of the marginal efficiency of capital curve as the _________________ curve for health.

<Complexity: Moderate>

<A-head: Health as a Form of Human Capital>

<Subject: Chapter 6, Page 43>

Multiple Choice

34. Grossman’s theory is based on the idea of which of the following?

[1] Supply and demand

[2] Efficiency and production

[3] Household and production

[4] Competition and demand

<Complexity: Moderate>

<A-head: Understanding the Investment Aspects of the Grossman Model>

<Subject: Chapter 6, Page 45>

True/False

35. Health status results from a process in which the individual can only influence the probability of transitions from one health state to another.

<Complexity: Moderate>

<A-head: Understanding the Investment Aspects of the Grossman Model>

<Subject: Chapter 6, Page 45>

Multiple Choice

36. Most of the variation in healthcare demand between countries can be explained using which of the following?

[1] Environment of the country

[2] Age of the population

[3] Gross domestic product

[4] Accessibility to health care

<Complexity: Moderate>

<A-head: Aggregate Demand for Health Care>

<Subject: Chapter 7, Page 52>

Matching

37. Match the following terms to the appropriate description.

[1] Have lower price elasticities because these goods are used jointly.

[2] A good for which income elasticity is positive but less than 1.

[3] A good in which the percentage increase in the quantity consumed is greater than the associated percentage increase in income.

[4] Measures responsiveness of consumer demand for health care to changes in the price of a good or service.

<Complexity: Difficult>

<A-head: Asymmetry of Information and Imperfect Agency>

<Subject: Chapter 7, Page 50>

Multiple Response

38. At what point may consumers choose to be rationally ignorant and delegate the decision making to the service provider?

[1] If costs of obtaining information are too high

[2] If information is highly specialized or difficult to obtain

[3] If the likely benefits are too low

[4] If the information is too complex to understand

[5] If the information is proprietary and cannot be openly discussed

<Complexity: Difficult>

<A-head: Asymmetry of Information and Imperfect Agency>

<Subject: Chapter 7, Page 50>

Fill-in-the-Blank

39. If providers make healthcare decisions in a manner fully consistent with patients’ preferences, unaffected by the consequences for themselves, they would be acting as ___________________.

<Complexity: Moderate>

<A-head: Asymmetry of Information and Imperfect Agency>

<Subject: Chapter 7, Page 51>

True/False

40. Estimates of the price elasticity of demand for a good or service that requires time will tend to be biased if one does not also take into account the time and money costs.

<Complexity: Easy>

<A-head: Asymmetry of Information and Imperfect Agency>

<Subject: Chapter 7, Page 52>

Multiple Choice

41. In what type of prospective reimbursement is the size of the budget paid to the hospital set prospectively across the whole range of treatments provided and is unrelated to the actual costs incurred or to the workload?

[1] Diagnosis-related group

[2] Global budgeting

[3] Prospective planning

[4] Prospective budgeting

<Complexity: Moderate>

<A-head: Optimal Insurance Contracts>

<Subject: Chapter 8, Page 62>

Multiple Response

42. Which of the following are predicted effects of the DRG pricing method?

[1] Cost shifting

[2] Patient shifting

[3] Service shifting

[4] DRG creep

[5] Code shifting

<Complexity: Difficult>

<A-head: Optimal Insurance Contracts>

<Subject: Chapter 8, Page 62>

Multiple Choice

43. Which of the following arises when hospitals deliberately or inadvertently classify cases into DRGs that carry a higher payment, indicating that they are more complicated than what they really are?

[1] Cost shifting

[2] Patient shifting

[3] Service shifting

[4] DRG creep

<Complexity: Moderate>

<A-head: Optimal Insurance Contracts>

<Subject: Chapter 8, Page 62>

Multiple Choice

44. Which of the following means that a third-party payer agrees to steer individuals insured on their plans to selected providers and, in turn, the selected providers charge lower prices to insurers?

[1] Selective contracting

[2] Competitive contracting

[3] Vertical integration

[4] Horizontal integration

<Complexity: Moderate>

<A-head: Integration Between Third-Party Payers and Healthcare Providers>

<Subject: Chapter 8, Page 62>

Fill-in-the-Blank

45. The main feature of a __________________ is that the insurance company and the healthcare provider vertically integrate to become different parts of the same organization.

<Complexity: Moderate>

<A-head: Integration Between Third-Party Payers and Healthcare Providers>

<Subject: Chapter 8, Page 63>

Multiple Choice

46. In what type of HMO does the HMO employ the physicians directly?

[1] Staff model

[2] Group model

[3] Network model

[4] Independent practice association

<Complexity: Moderate>

<A-head: Integration Between Third-Party Payers and Healthcare Providers>

<Subject: Chapter 8, Page 63>

Matching

47. Match the terms to the appropriate descriptions.

[1] Provides health care to the individual in return for a fixed fee, therefore combing the role of third-party payer and the healthcare provider.

[2] Employs primary care physician gatekeepers who authorize any health care offered by the preferred provider network.

[3] A model for the organization of primary care that provides comprehensive care, including preventative, acute, mental health, and chronic care through a team approach in order to reap efficiencies and enhance quality and coordination of care.

[4] A set of healthcare providers that works together and accepts group responsibility for the cost and quality of care delivered to its patient base.

<Complexity: Difficult>

<A-head: Integration Between Third-Party Payers and Healthcare Providers>

<Subject: Chapter 8, Page 63>

Multiple Choice

48. What type of private insurance provides the only form of insurance coverage for the individual relative to paying for services out of pocket completely?

[1] Substitutive

[2] Complementary

[3] Supplementary

[4] Exclusive

<Complexity: Moderate>

<A-head: Integration Between Third-Party Payers and Healthcare Providers>

<Subject: Chapter 8, Page 64>

True/False

49. When insurance coverage lowers the monetary costs of healthcare services to people, there is less importance on the component of time cost.

<Complexity: Easy>

<A-Head: Integration Between Third-Party Payers and Healthcare Providers>

<Subject: Chapter 8, Page 64>

Multiple Response

50. Which of the following are reasons why there has been a noticeable decrease in the amount of employers that are willing to pay for insurance premiums over the past 20 years?

[1] Rise in health insurance premiums

[2] Extension of Medicaid

[3] Fewer dual-income household

[4] Recession of the late 1980s and early 1990s

[5] Decline in unionization

<Complexity: Difficult>

<A-head: Insurance Trends>

<Subject: Chapter 8, Page 66>