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MHA 710 Healthcare Economics Exam 2
Verified and Correctly Answered Questions
2025 - 2026 Newest and Highly Recommended
Exam A+ Graded Louisiana State University
Which of the following is least responsible for the reduction in mortality rates in Europe and North America? A. More effective medical interventions B. Reduced exposure to diseases C. Clean water and waste disposal D. Improved sanitary conditions E. Better nutrition and housing A. More effective medical interventions When measuring the effectiveness of a treatment, surrogate measures reflect clinical efficacy and include: A. Hip fractures B. Death C. Scores on standard evaluative exams such as EuroQol or SF- 36 D. Bone-mass density (BMD)
E. Recurrence of the disease D. Bone-mass density (BMD) Which of the following measures of effectiveness is an intermediate measure? A. Cholesterol level B. Hip fracture C. Blood pressure D. Bone-mass density (BMD) E. Tumor size B. Hip fracture Many economists consider medical care a superior good. Which of the following statements is true regarding a superior good? A. When the price of a superior good increases, consumers demand more of it. B. Consumers want more of a superior good regardless of its price. C. Superior goods are considered necessities. D. A superior good has an income elasticity of demand less than one. E. As consumer income increases, consumers spend more on superior goods. E. As consumer income increases, consumers spend more on superior goods. According to Grossman (1972), how is the demand for medical care determined?
A physician's ability to induce demand is greatly enhanced when: A. Treatment options are limited B. The physician follows strict treatment guidelines C. Patients have difficulty gathering and processing information D. Patients pay their own medical bills E. Patients request follow-up visits C. Patients have difficulty gathering and processing information The concept of quality-adjusted life year (QALY): A. Is used extensively in the United States to evaluate health care programs B. Has little application to medical decision making C. Is a multidisciplinary approach to measuring health status D. Is used extensively to evaluate medical care resource allocation within government- run programs on fixed budgets, especially in Europe E. Is given an arbitrary value when applied to a real world problem D. Is used extensively to evaluate medical care resource allocation within government- run programs on fixed budgets, especially in Europe The standard cut-off for cost per quality-adjusted life year (QALY) used by most governmental decision makers is set in terms of a multiple of national per capita income. The value of the threshold is usually what percent of national per capita income? A. 200
B. 150
C. 300
D. 250
E. 100
E. 100
The direct costs in an economic evaluation include the all the following except A. hospitalization. B. medical devices. C. transportation to and from the physician's office. D. reduced productivity at work. E. all of the above. D. reduced productivity at work. When measuring effectiveness of a treatment, surrogate measures reflect clinical efficacy and include a. recurrence of the disease. b. death. c. bone-mass density (BMD). d. hip fractures. e. scores on standard evaluative exams such as EuroQol or SF-36. C. bone-mass density (BMD)
a. 0. b. 0. c. 4 d. 6 e. There is not enough information to determine the utility of life in this case. B. 0. We have an expert-written solution to this problem! Researchers estimate QALYs in a number of different ways. One popular approach is called the a. probability approach. b. QoL approach. c. standard gamble. d. standard measure of well-being. e. utility of life approach. C. Standard gamble The standard cut-off for cost per QALY is ______ per capita income. a. equal to b. 2 times c. 3 times d. 4 times
e. 5 times a. equal to Cost-effectiveness considerations are more formally integrated into health policy making in a. the UK. b. Australia. c. Europe. d. Canada. e. b, c, and d. e. b, c, and d Steps in performing a cost-effectiveness analysis include all of these EXCEPT a. ranking the alternative treatment options. b. prioritizing the alternative treatment options. c. calculating the ICER between each treatment option and the next most expensive one. d. eliminating treatment alternatives that are strictly dominated. b. prioritizing the alternative treatment options Researchers use cost-of-illness studies to
D. ceteris paribus. E. the fallacy of supply. B. supplier-induced demand The top ten causes of death in the United States in 2010 included all of the following except A. heart disease. B. cancer. C. suicide. D. kidney failure. E. AIDS. E. AIDS The accompanying diagram depicts the relationship between health status and medical care spending for a particular country. Which of the following statements is true? A. At the current spending level of S1 on TP1, this society can get a greater improvement in health status by increasing spending to S2 than by shifting TP to TP2. B. S1 levels of spending may be described as spending on the flat-of-the-curve. C. Social pressures will move the health care system to spend S2. D. All statements are true. E. All statements are false.
C. Social pressures will move the health care system to spend S2. Health care that actually harms the patient, such as an adverse reaction to a prescription drug, is called A. morbidity-related response. B. defensive medicine. C. adverse selection. D. iatrogenic disease. E. moral hazard. D. iatrogenic disease. The number one cause of death in the United States in 1980 was A. AIDS. B. heart disease. C. cancer. D. stroke. E. homicide and accidents. B. heart disease Health insurance features that tend to reduce moral hazard include A. deductibles.
C. 5
If health care spending is already on the flat-of-the-curve, it may not be possible to buy improved health status by increasing spending. In this situation, the best way to improve health status may be to A. increase the availability of government health insurance. B. invest in biotechnology to determine the genetic factors that improve health. C. improve life-style decisions by reducing smoking, alcohol consumption, and drug use. D. improve access to medical care. E. improve overall educational attainment so people can better follow the advice from the medical community. C. improve life-style decisions by reducing smoking, alcohol consumption, and drug use. McKeown's (1976) research attributed the majority of the secular decline in mortality rates in Europe and North America to A. better nutrition and housing. B. improved sanitary conditions. C. clean water and waste disposal. D. reduced exposure to diseases. E. better medical care.
Factors affecting medical care demand include A. health status. B. demographic characteristics. C. economic standing. D. physician factors. E. all of the above. E. all of the above A physician's ability to induce demand is greatly enhanced when A. patients pay their own medical bills. B. patients request follow-up visits. C. patients have difficulty gathering and processing information. D. the physician follows strict treatment guidelines. E. treatment options are limited. C. patients have difficulty gathering and processing information. The RAND Health Insurance Study A. examined cross-section data to estimate the demand function for medical care. B. was the most extensive controlled experiment in health insurance ever conducted in the United States. C. was based on individual decisions in voluntarily choosing health insurance coverage, like most economic studies.
Cost benefit Measuring the change in the cost of undertaking a specific course of action (compared to the next best alternative action) relative to the change in the health outcome of that action (compared to that same alternative). Cost-effectiveness analysis (CEA) Guide to evidence-based medical practice used to direct clinicians to follow recommended clinical procedures when treating patients with certain conditions. Clinical pathway The incremental benefit to society of producing and consuming an additional unit of a particular good. Marginal social benefit The incremental cost to society of producing and consuming an additional unit of a particular good. Marginal social cost The amount earned on an investment translated into an annual interest rate. Rate of return
Research whose purpose is to advance fundamental knowledge. Basic research A ratio used in cost-effectiveness analysis that compares the difference in the expected costs of two interventions relative to the difference in expected outcomes. Incremental cost-effectiveness ratio (icer) The ability to achieve the desired result in an ideal setting under controlled conditions. Efficacy The ability to achieve the desired result under real-world conditions. Effectiveness Suppose your assignment is to use the standard time trade-off approach to measure quality of life. You are given the following information. An individual is faced with leaving the remaining 10 years of their life suffering from severe osteoporosis. The individual reveals that they would be willing to give up four of those years to live hte remaining six in perfect health. What is the utility of one year in a chronic health state relative to perfect health? A. 0. B. 40
E. Adult women spend more money on medical care than men do The primary tasks required to conduct a successful cost effectiveness study are all of the following except: A. Identifying the overall cost of a health condition on society B. Establishing the relevant alternative(s) for comparison C. Ranking the alternatives in terms of overall costs D. Identifying and measuring all relevant costs E. Adequately measuring the effectiveness of the procedures evaluated A. Identifying the overall cost of a health condition on society A mathematical model used to depict a situation where outcomes are partially determined by disease progression and partially under the control of a decision maker. Markov decision model A utilitarian construct promoted by certain bioethicists that places a chronological age limit on the life worth living. After we reach a certain age (some say 75 years), our physical and mental capacity diminishes and we should not waste scarce medical resources to prolong life. Complete life
A cost that reflects the value the time taken from normal activities to receive medical care and recover from a procedure. Indirect cost A cost that is not easily quantified, such as pain and suffering, anxiety, and disfigurement. Intangible cost A marker, or reliable substitute, for a disease process. Usually a laboratory measure such as high blood pressure and elevated cholesterol levels as a surrogate for heart disease. Surrogate measure An outcome that occurs on the way to the final outcome, including heart attack, stroke, and scores on evaluative exams. Intermediate measure The long-term results of a medical intervention, such as medical events prevented, deaths avoided, or life years saved. Final outcome
