Economic Evaluation Methods Chapter 14 Complete Test Bank

Dewar ASQZ

Chapter 14

Matching

1. Match the evaluation method to the appropriate description.

[1] Outputs of the courses of action are identical and costs only are considered.

<Answer: Cost-minimization analysis>

[2] Output of the courses of action is common across alternatives, but the alternatives have varying degrees of success in achieving the output.

<Answer: Cost-effectiveness analysis>

[3] Output of the courses of action is valued commonly across alternatives, but the alternatives have varying degrees of success in achieving the value of the improvement in the output.

<Answer: Cost-utility analysis>

[4] The output of the courses of action may not be a single common effect or it may be multiple effects that may or may not be common to the alternatives.

<Answer: Cost-benefit analysis>

<Complexity: Difficult>

<A-head: Types of Economic Analyses>

<Subject: Chapter 14, Page 112>

True/False

2. Economic evaluations provide an objective way to determine resource allocations from an individual, community, or societal viewpoint.

<Answer: True>

<Complexity: Easy>

<A-head: What Do Economic Evaluations Address?>

<Subject: Chapter 14, Page 111>

Multiple Choice

3. What type of analysis can eliminate the need for clinical trials?

[1] Sensitivity analysis

[2] Cost-development analysis

[3] Cost-utility analysis

[4] Cost-benefit analysis

<Answer: 1>

<Complexity: Moderate>

<A-head: Types of Economic Analyses>

<Subject: Chapter 14, Page 114>

Multiple Choice

4. Which of the following is defined as the value or worth of a specific health state and can be measured by the preferences of persons for any set of health states?

[1] Benefit

[2] Utility

[3] Asset

[4] Supply

<Answer: 2>

<Complexity: Moderate>

<A-head: Types of Economic Analyses>

<Subject: Chapter 14, Page 114>

Multiple Choice

5. Which of the following accounts for the differential timing of costs and outputs of particular courses of action under consideration over multiple periods of time?

[1] Sensitivity analysis

[2] Cost-development analysis

[3] Cost-utility analysis

[4] Discounting

<Answer: 4>

<Complexity: Moderate>

<A-head: Types of Economic Analyses>

<Subject: Chapter 14, Page 115>

Fill-in-the-Blank

6. _______________________ is what a person would hypothetically pay if he or she could achieve the benefits from specific interventions.

<Answer: Contingent valuation>

<Complexity: Moderate>

<A-head: Types of Economic Analyses>

<Subject: Chapter 14, Page 115>

Multiple Choice

7. Time lost from work due to participation in course of action or to illness related to course of action is what type of cost?

[1] Direct cost

[2] Indirect cost

[3] External cost

[4] Societal cost

<Answer: 2>

<Complexity: Moderate>

<A-head: Types of Economic Analyses>

<Subject: Chapter 14, Page 115>

Multiple Choice

8. Healthy days or quality-adjusted life years (QALYs) are the measurement of output of which economic evaluation method?

[1] Cost-minimization analysis

[2] Cost-effectiveness analysis

[3] Cost-utility analysis

[4] Cost-benefit analysis

<Answer: 3>

<Complexity: Moderate>

<A-head: Types of Economic Analyses>

<Subject: Chapter 14, Page 113>

True/False

9. Because the Pareto principle is satisfied hypothetically, cost-benefit analysis traditionally does not account for income redistribution.

<Answer: True>

<Complexity: Easy>

<A-head: Types of Economic Analyses>

<Subject: Chapter 14, Page 115>

True/False

10. A sound economic evaluation has the components seen in a good empirical research study.

<Answer: True>

<Complexity: Easy>

<A-head: Types of Economic Analyses>

<Subject: Chapter 14, Page 116>