Medical and health service managers?

Health Care Economics?

• 1. The insight that both parties must be benefiting if they freely agreed to make a trade is known as the fundamental theorem of exchange. True or False? 2. In a two-party transaction, consumers make up the demand side, while sellers make up the supply side. True or False? 3. A recent study showed that 86% of those who filed for bankruptcy had health insurance. True or False? 4. Demand is a professional determination of the quantity that should be supplied. True or False? 5. To determine how many times an individual will visit the doctor, we look only at that individual’s behavior. This is an example of derived demand. True or False? 6. Cost–benefit analysis (CBA) is a set of techniques for assisting in the making of decisions that translates all relevant concerns into market (dollar) terms. True or False? 7. The appropriate measure of economic cost is opportunity cost. True or False? 8. How much has to be paid for treatment, and how much the treatment is worth, depends on whose perspective a cost–benefit analysis of health care is taking. True or False? 9. The chance that you might become injured or sick is a cost, as is the chance that you might have significant expenses when you have no income. True or False? 10. People’s degree of risk aversion depends to some extent on their income and savings. True or False? 11. With insurance, patients gain by pooling risks to eliminate financial uncertainty and make expensive treatments affordable. True or False? 12. People make medical decisions based solely on the type of insurance coverage they have. True or False? 13. The Medicare RBRVS system was designed to rebalance physicians’ incomes across specialties and to provide more payment for thinking and caring. This system was completely successful. True or False? 14. The income of physicians in solo or group private practices mostly comes from fee-for-service payments. True or False? 15. To maximize revenues when providing different types of care, physicians should charge different prices even if their costs are the same for each service, and they should charge a lower price where demand is least price sensitive. True or False? 16. In the United States, physicians not only prescribe drugs; they also sell medications. True or False? 17. Payment systems such as insurance plans have transformed medical care into a: a. business. b. profit. c. public good. d. charity. 18. Demand curves are ___________ sloping, because the quantity demanded will always fall as prices rise. a. downward b. upward c. linearly d. horizontally 19. Economists define derived demand as demand for a good due to its ________, rather than in itself. a. quality b. use c. quantity d. cost 20. ____________ is the increase in total costs caused by the production of one more unit. a. Marginal revenue b. Marginal demand c. Price sensitivity d. Marginal cost 21. The _________ and __________ associated with a decision don’t have value in and of themselves; instead, their value depends on the alternatives. a. costs, quality b. costs, benefits c. quantity, quality d. costs, quantity 22. All of the following are types of medical costs except: a. medical care and administration. b. follow-up and treatment. c. provider time and inconvenience. d. health and productivity. 23. The most common method of protection against the risk of large medical costs is: a. insurance. b. pooling. c. adverse selection. d. risk aversion. 24. Health insurance became more of a necessity as medical care became more: a. affordable. b. expensive. c. accessible. d. risky. 25. Insurance breaks the linkage between what the _______ pays and the amount the provider is paid. a. physician b. hospital c. insurance company d. patient 26. HSA stands for: a. health savings account. b. health standard association. c. higher standard account. d. health spending account. 27. Malpractice is physician failure to meet: a. pre-established cure rates. b. payment methods. c. professional standards. d. insurance requirements. 28. ____________ is an extension of the agency relationship between doctors and patients to society as a whole. a. Licensure b. Adverse selection c. Assignment d. Coinsurance 29. One of the characteristics of medical markets first noted by economists was that _________ patients pay _____________ prices for the same service. a. different; different b. different; the same c. the same; different d. the same; the same 30. Surreptitious payments in order to obtain business are referred to as: a. price discrimination. b. economies of scale. c. kickbacks. d. copayments.

• Answer:

  24 questions in one post - a bit greedy, no? We aren't here to do your homework for you. We're here to help you understand. As for question #1, the "insight" is just plain wrong. Surely you've bought something expecting it to be something you want and finding out it isn't, doesn't work, etc.? Either you have to assume perfect information, perfect self-knowledge, etc. on the part of both parties to the trade or the conclusion just doesn't follow. And that doesn't deal with the cases of "no perceived choice" or the lesser of two evils - does a blackmail victim _benefit_ from paying off the blackmailer? I would say no, after all, there is no guarantee the blackmailer won't publish anyway, that the blackmailer won't come back for more, etc.