Econ final

4. Under retrospective payment, the entity incurring all financial risk is A) The hospitalB) The patientC) The payer

C

Horizontal collaborative arrangements have been undertaken to integrate better control over the coordination of care across providers and institutions.

false

If there is a vertical supply curve, then a mandated benefit will result in a full employment effect.

false

1. Essential ingredients of market power are:A) Ease with which buyers and sellers can weigh alternatives B) Substantial availability of viable substitutesC) Inability to influence terms of exchangeD) All of the above

A

1. The fixed amount that must be paid before insurance pays anything on the medical service is theA) DeductibleB) Copayment C) CoinsuranceD) Loading fee

A

1. The objective of Medicare's Pathway to Success Program is to A) Increase savings for the Trust Fund and mitigate lossesB) Increase gaming opportunitiesC) Promote more rigid regulatory requirements D) Restrict free market principles

A

2. A dynamic disequilibrium occurs whenA) The market has not had time to adjust to a changeB) The market has not adjusted because of a government policyC) The market has not adjusted because of market power possessed by sellers

A

2. If a new treatment is less costly than an old treatment and the new treatment is more effective thenA) The new treatment is dominantB) The old treatment is dominant C) Neither treatment is dominant

A

2. In terms of ability to control provider decision making, the "tightest" type of plan is the A) Staff model HMOB) Group model HMOC) Independent practice association D) Preferred provider organization

A

2. The greater the rate of decrease of marginal utility for an individual,A) The more risk averse the individual is and the more willing the individual is to pay premiums above the actuarially fair premium.B) The less risk averse the individual is and the more willing the individual is to pay premiums above the actuarially fair premium.C) The more risk averse the individual is and the less willing the individual is to pay premiums above the actuarially fair premium.D) The less risk averse the individual is and the amount the individual willing is to pay premiums above the actuarially fair premium is constant.

A

2. The three types of distributional equity are: A) Vertical, intergenerational, and horizontal B) Vertical, social, and intergenerational C) Horizontal, social, and intergenerational D) Vertical, horizontal, and social

A

3. A method of paying hospitals that is based on an amount paid for each day a patient is hospitalized isA) Per diem paymentB) Per service payment C) Per admission payment D) Per patient panel

A

3. The critical price below which the firm will shut down depends on which costs of the firm? A) Variable costsB) Fixed costsC) Indirect costs D) A and B

A

4. The concept related to differences in outcomes between interventions under non-experimental conditions is:A)EffectivenessB) Efficacy C) EfficiencyD) Equity

A

5. A tax that has a larger relative impact on the incomes of high-income individuals than on low- income individuals is considered to beA) ProgressiveB) Regressive C) NeutralD) Indeterminate

A

5. Product differentiation implies that each supplier then faces A) A downward-sloping demand curveB) An upward-sloping demand curveC) A horizontal demand curve D) A vertical demand curve

A

1. The actual quantity traded in a market refers to A) the quantity demandedB) the quantity utilizedC) the quantity supplied D) none of the above.

B

1. The economic analysis method used when there are alternative ways of attaining a single type of outcome is:A) Cost-utility analysisB) Cost-minimization analysis C) Cost-effectiveness analysis D) Cost-consequence analysis

C

1. The positive relationship between wages and work time measures what is called A) The substitution effect of leisure for incomeB) The income effect of leisure for incomeC) The substitution effect of income for leisure D) The income effect of income for leisure

C

2. A factor that causes the marginal cost curve to shift upward will result in: A) An increase in supplyB) An increase in quantity suppliedC) A decrease in supply D) A decrease in quantity supplied

C

2. If an individual does not have a strong willingness to work more as wages increases, then the supply curve will beA) HorizontalB) Vertical C) Steeply sloped D) Gently sloped

C

2. If the marginal cost curve slopes upward steeply, an increase in physicians' fees will bring aboutA) A large increase in physician supplyB) No change in physician supply C) A small increase in physician supplyD) An indeterminate amount of change in physician supply

C

2. Medicare Advantage plans are paid a capitated amount to provide A) All Part A, B, and D benefitsB) All Part A and D benefitsC) All Part A and B benefits D) All Part B and D benefits

C

3. In a monopoly market, MR is positive only at those quantities that correspond to A) The inelastic portion of the demand curveB) The unit elastic portion of the demand curveC) The elastic portion of the demand curve D) None of the above

C

5. If demand is price elastic, then an increase in price will cause A) Total revenue to increaseB) Total revenue to stay the sameC) Total revenue to decrease D) Impact is indeterminate

C

5. The prediction of the impact of a labor union in a market is that unions A) Increase wages and increase employmentB) Decrease wages and increase employmentC) Increase wages and restrict employment D) Decrease wages and restrict employment

C

1. In order to achieve desired outcomes and costs, managed care focuses on efforts to A) Coordinate utilizationB) Rationalize utilizationC) Channel utilization D) All of the above

D

1. The method of payment that is similar to a piece-rate method is A) SalaryB) CapitationC) Per case D) Fee for service

D

3. A type of situation that will result in changes in supply is?A) A change in input combinations used to produce output by existing suppliers B) An increase in the capital stock of existing suppliersC) Entry into the market by new suppliersD) All of the above

D

3. The Patient Protection and Affordable Care Act (ACA) stipulates that insurance premiums cannot vary because of:A) Family structureB) Geography C) AgeD) Pre-existing health conditions E) All of the above

D

3. To achieve this type of efficient, demand must be at an appropriate level, the supply of services must be adequate, the level of quality must be appropriate, and produced at a low cost. A) Technical efficiencyB) Allocative efficiency C) Social efficiencyD) Economic efficiency

D

4. To be effective a consumer-engagement strategy must help consumers toA) Understand their risks or actual conditions so providers can manage themB) Understand and make uninformed treatment choicesC) Advocate for private reporting by hospitals on locally recognized indicators of quality care D) Choose providers based on information about their ability to deliver effective care E) All of the above

D

4. The federal government defines minimum requirements that states must meet with Medicaid, but the states have broad authority to establishA) Eligibility criteriaB) Benefits covered C) Provider payments D) Delivery systems E) All of the above

E

5. Members of the management triangle include A) Hospital trusteesB) PhysiciansC) Administrators D) A and C only E) A, B, and C

E

. Market power can only be wielded by sellers in the market.

false

1. A Critical Access Hospital is a full-service acute care hospital in a rural area

false

1. A market in economics is a set of arrangements that brings buyers and sellers together in a physical location.

false

1. An economic evaluation provides all the answers for making informed choices.

false

1. For the supply of a normal good or service, there is an inverse relationship between price and quantity.

false

1. The first known health insurance in the United States was implemented by the Granite Cutters Union.

false

2. In a monopolistic market, demanders have close substitutes for the good or service. Ans: False

false

2. Marginal productivity is determined by dividing total output by total input.

false

2. Only hospitals and physicians are facing tremendous pressure to cut costs, improve quality, and prepare for fundamental change in how health care is provided, financed, and consumed.

false

2. Part B of original Medicare covers inpatient hospital services, limited skilled nursing facility services, home health care, and hospice services

false

2. The substitution effect reflects the change in the desired hours of work resulting from a change in income when the wage is held constant.

false

3. Allocative efficiency implies that, given production conditions and input prices, the lowest cost combination of inputs is used at any output level.

false

4. In a monopolists market, the more elastic the demand, the steeper the slope of the demand curve.

false

4. In general, a firm will stop production when the price no longer covers its fixed costs.

false

4. Medicaid is a state public health insurance program

false

4. Strictly speaking, the price of insurance is the pure or actuarily fair premium.

false

4. The net benefit approach in economic analysis compares projects on the basis of the average

false

4. The use of the usual, customary and reasonable (UCR) payment method has often been viewed as anti-inflationary.

false

5. A shortage occurs when the quantity supplied exceeds the quantity demanded.

false

5. If marginal cost is greater than the marginal social value, then output should be increased.

false

5. Information symmetry occurs when at least some relevant information for a transaction is known to some, but not all, of the parties involved.

false

6. Social value is made up of all individuals' external values for a specific good or service.

false

6. When demand increases and supply decreases, price will decrease.

false

7. A principal-agent relationship exists when one entity or individual (called the principal) acts on behalf of another entity or individual (called the agent)

false

7. Generally, markups (charge-to-cost ratios) for ancillary services were found to be lower than basic room charges in hospitals.

false

7. The demand curve for labor will shift upward and to the left if labor becomes more productive.

false

7. The demand for long-term care reflects a derived demand rather than a basic demand.

false

7. The lower a state's per capita income, the lower the rate (the federal match rate—FMAP) paid by the federal government

false

A public good or service is one that is judged to have value that an individual or society should have based on some concept of need..

false

An implied condition of pooling risks with insurance is that the event being insured against is under the control of the individuals.

false

An individual will increase work time hours from zero as long as the value of lost leisure is greater than the wage rate.

false

Demand-side regulation of hospitals include certificate-of-need requirements for entry of new hospitals.

false

If total utility increases as wealth increases, the first derivative of the utility function is negative.

false

In economic analysis, a decision tree can be used in analyzing events that occur repeatedly or over a long period of time.

false

In the state of information symmetry, one group of individuals potentially engaged in a transaction has better information than another group potentially engaged in the transaction..

false

Indirect regulation refers to interventions in markets by regulatory agencies to control price, quantity, or quality with straightforward actions

false

The FDA regulates prescription medications, generic drugs, but not over-the-counter drugs.

false

The Medicare Advantage program is funded separately by premiums from enrollees .

false

The focus of concern regarding rising healthcare costs should be on the absolute size of spending in the health care sector.

false

The inpatient hospital stays under Medicare are paid a prospectively set rate according to the resource-based relative value scale

false

The more narrowly a problem is defined in an economic evaluation, the more alternatives available for solving the problem.

false

The use of electronic health records (EHRs) will decrease the Complexity: of changes occurring in the healthcare system.

false

1. A change in the following factor will cause a movement along a given supply curve) A) PriceB) TechnologyC) Government subsidies D) B and C

A

1. The two welfare effects of insurance areA) The welfare gain from shifting the risk and the welfare gain from consuming beyond the optimal point when the individual is illB) The welfare gain from shifting the risk and the welfare loss from consuming beyond the optimal point when the individual is illC) The welfare loss from shifting the risk and the welfare gain from consuming beyond the optimal point when the individual is illD) The welfare loss from shifting the risk and the welfare loss from consuming beyond the optimal point when the individual is ill

B

2. In a monopsonist market, the marginal cost of an additional unit of a good or services A) Is lower than its priceB) Is higher than its priceC) Is the same as its price

B

3. The most regressive method of financing healthcare is: A) Income taxationB) PremiumsC) Sales taxation D) Payroll taxation

B

3. The source of Medicare funding paying the largest amount is A) Premium revenueB) General revenueC) Payroll tax revenue D) Taxation on Social Security benefits

B

4. If the number of suppliers in the market increases, the supply curve will A) Shift inwardB) Shift outwardC) Remain stationary D) Bend backwards

B

4. In a monopolistic competition model, the fundamental conditions include: A) There are few competitors and potential competitors in the marketB) Each firm can vary its product qualityC) There is no ability to develop consumer loyalty D) All of the above

B

4. In the competitive labor market model, poor health will cause the labor supply curve A) To shift to the rightB) To shift to the leftC) To remain stationary with movement up the supply curve D) To remain stationary with movement down the supply curve

B

4. The analysis of provider behavior involving capital additions has been referred to as A) short-run analysisB) long-run analysisC) marginal analysis D) simultaneous analysis

B

5. In Medicare, the goal referring to the burden of payments on specific groups is: A) AffordabilityB) EquityC) Adequacy D) Feasibility

B

5. When the outcomes are the same for all of the interventions being studied, then the economic analysis method that can be applied is:A) Cost-utility analysisB) Cost-minimization analysis C) Cost-effectiveness analysis D) Cost-consequence analysis

B