It could be argued that the federal and state governments provide an implicit guarantee of hospital borrowings because revenue from Medicare and Medicaid patients is assumed to be guaranteed.

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QUESTION 1

  1. It could be argued that the federal and state governments provide an implicit guarantee of hospital borrowings because revenue from Medicare and Medicaid patients is assumed to be guaranteed.

     

     

1 points   

QUESTION 2

  1. During the Information Age, the first records of mortality, disease occurrence, and scientific effectiveness were documented in Paris clinics.

     

     

1 points   

QUESTION 3

  1. Rising costs and declining consumer satisfaction are the keys to defining the system as broken.

     

     

1 points   

QUESTION 4

  1. According to the text, medical care expenditures increased from the Agricultural Age to the Industrial Age. At the end of the Agricultural Age, almost all expenditures on health care were driven by the 2% of the population that was wealthy. Greater equality of income and wealth distribution in the Industrial Age helped support the increase in medical expenditures.

     

     

1 points   

QUESTION 5

  1. Choices based on marginal, rather than average, benefits and costs will tend to overproduce medical services.

     

     

1 points   

QUESTION 6

  1. Technology such as aquaculture, in which food sources are farmed from water resources, was never anticipated in the Malthusian Hypothesis.

     

     

1 points   

QUESTION 7

  1. The U.S. government subsidizes the private provision of health insurance through employers. Benefits paid to employees are deductible as expenses by firms but not recognized as taxable income by employees. Consider two employees, Ann and Bob, who both receive $12,000 in insurance benefits for their family. Ann earns $30,000 and pays 15% in taxes. Bob earns $75,000 and pays 25% in taxes. The tax subsidy to Bob is:
    a.
    b.
    c.
    d.
    e.

1 points   

QUESTION 8

  1. Immigration is simply a movement of people from one country to another, so population growth rates exclude immigration on a world-wide basis.

     

     

1 points   

QUESTION 9

  1. A problem with the Jones-Lee Approach to estimating Value of Life is that

1 points   

QUESTION 10

  1. When Allegheny Hospital System (AHERF) went bankrupt, the price of borrowing for all hospitals increased. This is an example of correlated system risk.

     

     

1 points   

QUESTION 11

  1. The importance of tracking the excess of growth in health expenditures over growth in GDP is that this “excess cost growth” number is represents the allocation of resources away from other goods and services and to health expenditures.

     

     

1 points   

QUESTION 12

  1. In the U.S., the key determinants of population growth have been the excess of increasing birth rate and declining death rates.

     

     

1 points   

QUESTION 13

  1. Population growth during the Demographic Transition to the Industrial Age is driven by declining mortality and increasing fertility.

     

     

1 points   

QUESTION 14

  1. Kaiser Health Plan is the only HMO in the U.S. to consistently maintain its core competencies. That is, it has kept client satisfaction high, while keeping the growth rate of premiums higher than the growth rate of medical costs.

     

     

1 points   

QUESTION 15

  1. Shareholders of the Allegheny General Hospital group violated the shareholder/investor agency relationship when illegal accounting practices were discovered in the late 1990s.

     

     

1 points   

QUESTION 16

  1. A sudden escalation in medical costs for treatment of ischemic heart disease would immediately:
    a.
    b.
    c.
    d.
    e.

1 points   

QUESTION 17

  1. The value of any capital project can be assessed by estimating expected cash flows and discounting to allow for the time value of money.

     

     

1 points   

QUESTION 18

  1. The role of health economists in the future will likely include a centralized evaluation board patterned after the NICE (National Institute for Clinical Effectiveness) in England and IQWIG in Germany. The influence of any recommendations will depend upon factors beyond the economic analysis.

     

     

1 points   

QUESTION 19

  1. Economists treat the increase in health expenditures in the U.S. as solely a trade off between costs of medical interventions and gains in life expectancy and costs for those interventions.

     

     

1 points   

QUESTION 20

  1. Development of financial institutions and effective medical technology are the only reasons Dr. Getzen gives as determinants of growth in the health care sector of the economy.

     

     

1 points   

QUESTION 21

  1. Demographic Transition during the Agricultural Age means high infant and child mortality is accompanied by high birth rates and population increases occur.

     

     

1 points   

QUESTION 22

  1. The Malthusian hypothesis:
    a.
    b.
    c.
    d.
    e.

1 points   

QUESTION 23

  1. Bill’s employer offers a new health insurance benefit which covers preventive and cosmetic dental services, including orthodontic care, for employees and their family members. If Bill knows his children need extensive orthodontic care, he will buy the policy. This is an example of moral hazard.

     

     

1 points   

QUESTION 24

  1. The necessary catalyst for development of social insurance programs for health care was the:
    a.
    b.
    c.
    d.
    e.

1 points   

QUESTION 25

  1. Varying measures of benefits can result because the viewpoint of the party benefitting from a treatment varies.

     

     

1 points   

QUESTION 26

  1. One of the key contributions health economists make to any debate on medical care decisions is to force the questions which make clear the perspectives of each party involved: patient, provider, or payer.

     

     

1 points   

QUESTION 27

  1. Social insurance:
    a.
    b.
    c.
    d.
    e.

1 points   

QUESTION 28

  1. Physician office management solutions to reducing the escalation rate of health expenditures and improving patient satisfaction include MSAs, medical homes and concierge practices.

     

     

1 points   

QUESTION 29

  1. Insurance coverage of which treatment would likely cause the most problems with moral hazard?
    a.
    b.
    c.
    d.
    e.

1 points   

QUESTION 30

  1. Physicians generally focus on tradeoffs. Health care economists focus on maximizing benefits to society as a whole.

     

     

1 points   

QUESTION 31

  1. Economics is the science which studies how scarce resources are allocated among unlimited needs and wants. In health economics, allocation can be restated as distribution resources, the distribution of health, the distribution of medical care, and the distribution of provider incomes.

     

     

1 points   

QUESTION 32

  1. Not-for-profit hospitals differ from traditional corporations in that:
    a.
    b.
    c.
    d.
    e.

1 points   

QUESTION 33

  1. Choices based on marginal, rather than average, benefits and costs will tend to overproduce medical services.

     

     

1 points   

QUESTION 34

  1. The transition from Stone Age to Agricultural Age was characterized by changes in lifestyle from hunter-gatherer to farmers and resulted in increased life expectancy as the social structures of ancient civilizations such as the Sumerians, Greeks, and Romans provided stability and steady farm production.

     

     

1 points   

QUESTION 35

  1. During the Information Age, world population first exceeds one billion, and the Malthusian Hypothesis dominates thinking on population trends.

     

     

1 points   

QUESTION 36

  1. Issues in agency would be least likely to arise in:
    a.
    b.
    c.
    d.
    e.

1 points   

QUESTION 37

  1. A company with 1,000 employees has the following experience this year:

    • 25 hospitalizations at $5,600 each
    • 24 births at $10,000 each
    • 4.1 physician visits per employee at $60 per visit
    • 2.4 prescriptions filled per employee at $25 per prescription

    The actuarially fair premium is:

    a.
    b.
    c.
    d.
    e.

1 points   

QUESTION 38

  1. Cost-benefit analysis of a childhood immunization program is straight-forward analysis because the costs of the drugs are well known and the benefits to individual children are easy to calculate.

     

     

1 points   

QUESTION 39

  1. A kidney cancer drug, which delays cancer progression for six months at an estimated treatment cost of $54,000. There are no known side effects. This is a cost per Quality Adjusted Life Year (QALY) of

1 points   

QUESTION 40

  1. Dr. Chey works in a small group practice. If Dr. Chey dies, and the practice is owned by a for-profit hospital corporation:
    a.
    b.
    c.
    d.
    e.
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