HSA 6155 Exam 2 Questions With
Complete Answers
1. In the traditional competitive model of healthcare supply and demand
a. supply plays a passive role.
b. a change in supply does not affect the level of demand (does not change the
position of the demand curve).
c. a change in supply affects the level of demand (changes the position of the
demand curve).
Correct! d. A & B.
e. A & C. - ANSWER D
2. Physicians act as agents on behalf of their patients
a. Only when patients are incapacitated.
b. Because the patient knows as much as the physician about his/her condition.
Correct! c. Because physicians tend to have more medical information about the
patient's condition and treatments then the patients do.
d. Because patients distrust physicians.
e. All of the above - ANSWER c
3. Physicians may not be perfect agents for their patients because
a. They may not know what the patient would want.
b. They may not know the best services for the patient.
c. Patients know for certain what healthcare is best for them.
d. All of the above.
Correct! e. A & B only. - ANSWER e
4. Which of the following statements is true?
Correct! a. Physicians might not induce demand because they would lose leisure
time.
b. the concept of perfect agency is realistic.
c. Information asymmetry is not necessary for physician demand inducement.
d. All of the above.
e. A & B only. - ANSWER a
5. One way to test whether physicians induce demand is to see
a. Whether price stays the same or rises in response to an increase in the
number of physicians.
b. Whether demand increases in response to an increase in the number of
physicians in a specific area.
,c. Whether demand decreases in response to an increase in the number of
physicians in a specific area.
d. All of the above.
Correct! e. A. and B. only - ANSWER e
6. When physicians induce demand
a. They get patients to demand more services, thereby shifting the demand
curve outward (to the right). The equilibrium price and quantity of physician
services increases
Correct! b. They get patients to demand more services, thereby shifting the
demand curve outward (to the right). The supply of physician services also shifts
to the right. The equilibrium quantity of physician services increases but the
equilibrium price is indeterminate.
c. They get patients to demand more services, thereby shifting the demand
curve outward (to the right). The supply of physician services also shifts to the
right. The equilibrium price and quantity of physician services increases.
d. All of the above. - ANSWER b
7. If the number of physicians in an area increased from S0 to S1, under demand
inducement, the price and quantity of physician services could____
a. Increase from P0, Q0 to P1, Q1
b. Increase from P1, Q1 to P2, Q2
Correct! c. Increase from P0, Q0 to P2, Q2
d. Remain unchanged
e. None of the above - ANSWER c
8. Supply-side mechanisms for reducing unnecessary utilization focus on all but
which of the following:
Correct! a. Patient co-payments
b. Practice guidelines
c. Utilization review
d. Selective contracting
e. None of the above. - ANSWER a
9. Pay for Performance (P4P) is a reimbursement system under which:
a. Healthcare providers are reimbursed based on whether they meet quality and
efficiency targets.
b. Healthcare providers may be rewarded if they meet specific quality threshold
targets.
c. There may be unintended consequences in that providers could perform to
the target and neglect other issues.
Correct! d. All of the above.
e. A. and B. only - ANSWER d
10. Over the past 30 years in the U.S.
, Correct! a. Healthcare markets have become much more concentrated.
b. Only the hospital market has become very concentrated.
c. Only the insurance industry has become very concentrated.
d. Only the nursing home industry has become very concentrated. - ANSWER a
11. Oligopoly is when:
a. A small number of firms may compete with each other to some degree.
b. A small number of firms supply a dominant share of an industry's total output.
c. A small number of firms may collude to set prices and quantity.
Correct! d. All of the above.
e. A & B only - ANSWER d
12. Which of the following is an example of economies of scale:
a. A nursing home provides 10,000 patient-days of service per year, the cost per
patient-day is almost $29; if it provides about 50,000 patient-days of service per
year, the cost per patient-day is over $29.
b. A nursing home provides 10,000 patient-days of service per year, the cost per
patient-day is almost $30; if it provides about 50,000 patient-days of service per
year, the cost per patient-day is $32.
Correct! c. A nursing home provides 10,000 patient-days of service per year, the
cost per patient-day is almost $29; if it provides about 50,000 patient-days of
service per year, the cost per patient-day is under $26.
d. Only A. and B.
e. None of the above. - ANSWER c
13. Not-for-profit organizations
Correct! a. Are Tax exempt and rely primarily on public donations for their funds.
b. Must pay federal corporate income taxes and other state and local taxes.
c. May distribute profits to owners or shareholders..
d. All of the above.
e. A. and B. only. - ANSWER a
14. Net income for for-profit organizations
a. Must be reinvested in the organization or community or redistributed to
donors.
b. Cannot be distributed to any individual or shareholder.
c. Is tax exempt at the federal level.
d. A. and B. only.
Correct! e. None of the above. - ANSWER e
15. Keeping healthcare "incompletely commodified" means:
a. Providing anabolic steroids to athletes desiring to enhance their athletic
performance.
b. Providing healthcare only to those who can afford it.
Correct! c. Performing a life saving kidney transplant operation to a child who is
uninsured.
Complete Answers
1. In the traditional competitive model of healthcare supply and demand
a. supply plays a passive role.
b. a change in supply does not affect the level of demand (does not change the
position of the demand curve).
c. a change in supply affects the level of demand (changes the position of the
demand curve).
Correct! d. A & B.
e. A & C. - ANSWER D
2. Physicians act as agents on behalf of their patients
a. Only when patients are incapacitated.
b. Because the patient knows as much as the physician about his/her condition.
Correct! c. Because physicians tend to have more medical information about the
patient's condition and treatments then the patients do.
d. Because patients distrust physicians.
e. All of the above - ANSWER c
3. Physicians may not be perfect agents for their patients because
a. They may not know what the patient would want.
b. They may not know the best services for the patient.
c. Patients know for certain what healthcare is best for them.
d. All of the above.
Correct! e. A & B only. - ANSWER e
4. Which of the following statements is true?
Correct! a. Physicians might not induce demand because they would lose leisure
time.
b. the concept of perfect agency is realistic.
c. Information asymmetry is not necessary for physician demand inducement.
d. All of the above.
e. A & B only. - ANSWER a
5. One way to test whether physicians induce demand is to see
a. Whether price stays the same or rises in response to an increase in the
number of physicians.
b. Whether demand increases in response to an increase in the number of
physicians in a specific area.
,c. Whether demand decreases in response to an increase in the number of
physicians in a specific area.
d. All of the above.
Correct! e. A. and B. only - ANSWER e
6. When physicians induce demand
a. They get patients to demand more services, thereby shifting the demand
curve outward (to the right). The equilibrium price and quantity of physician
services increases
Correct! b. They get patients to demand more services, thereby shifting the
demand curve outward (to the right). The supply of physician services also shifts
to the right. The equilibrium quantity of physician services increases but the
equilibrium price is indeterminate.
c. They get patients to demand more services, thereby shifting the demand
curve outward (to the right). The supply of physician services also shifts to the
right. The equilibrium price and quantity of physician services increases.
d. All of the above. - ANSWER b
7. If the number of physicians in an area increased from S0 to S1, under demand
inducement, the price and quantity of physician services could____
a. Increase from P0, Q0 to P1, Q1
b. Increase from P1, Q1 to P2, Q2
Correct! c. Increase from P0, Q0 to P2, Q2
d. Remain unchanged
e. None of the above - ANSWER c
8. Supply-side mechanisms for reducing unnecessary utilization focus on all but
which of the following:
Correct! a. Patient co-payments
b. Practice guidelines
c. Utilization review
d. Selective contracting
e. None of the above. - ANSWER a
9. Pay for Performance (P4P) is a reimbursement system under which:
a. Healthcare providers are reimbursed based on whether they meet quality and
efficiency targets.
b. Healthcare providers may be rewarded if they meet specific quality threshold
targets.
c. There may be unintended consequences in that providers could perform to
the target and neglect other issues.
Correct! d. All of the above.
e. A. and B. only - ANSWER d
10. Over the past 30 years in the U.S.
, Correct! a. Healthcare markets have become much more concentrated.
b. Only the hospital market has become very concentrated.
c. Only the insurance industry has become very concentrated.
d. Only the nursing home industry has become very concentrated. - ANSWER a
11. Oligopoly is when:
a. A small number of firms may compete with each other to some degree.
b. A small number of firms supply a dominant share of an industry's total output.
c. A small number of firms may collude to set prices and quantity.
Correct! d. All of the above.
e. A & B only - ANSWER d
12. Which of the following is an example of economies of scale:
a. A nursing home provides 10,000 patient-days of service per year, the cost per
patient-day is almost $29; if it provides about 50,000 patient-days of service per
year, the cost per patient-day is over $29.
b. A nursing home provides 10,000 patient-days of service per year, the cost per
patient-day is almost $30; if it provides about 50,000 patient-days of service per
year, the cost per patient-day is $32.
Correct! c. A nursing home provides 10,000 patient-days of service per year, the
cost per patient-day is almost $29; if it provides about 50,000 patient-days of
service per year, the cost per patient-day is under $26.
d. Only A. and B.
e. None of the above. - ANSWER c
13. Not-for-profit organizations
Correct! a. Are Tax exempt and rely primarily on public donations for their funds.
b. Must pay federal corporate income taxes and other state and local taxes.
c. May distribute profits to owners or shareholders..
d. All of the above.
e. A. and B. only. - ANSWER a
14. Net income for for-profit organizations
a. Must be reinvested in the organization or community or redistributed to
donors.
b. Cannot be distributed to any individual or shareholder.
c. Is tax exempt at the federal level.
d. A. and B. only.
Correct! e. None of the above. - ANSWER e
15. Keeping healthcare "incompletely commodified" means:
a. Providing anabolic steroids to athletes desiring to enhance their athletic
performance.
b. Providing healthcare only to those who can afford it.
Correct! c. Performing a life saving kidney transplant operation to a child who is
uninsured.
