Health Economics and Finance
Question and answers verified to pass
2025/2026
Population health - correct answer ✔Focuses on public health, the health of a group of individuals,
including the distribution of such outcomes within the group
Individual Health Status - correct answer ✔can be measured by a physical examination of the person
along any of several dimensions such as presence of illness, risk factors mortality or morbidity, overall
health as determined through visual and biological testing
Economics - correct answer ✔can provide insights into the study of human behavior as it is impacted
by constraints and financial incentive
Economic analysis - correct answer ✔sis becomes an increasingly important tool in the study of factors
that affect health and health care of the American public.
3 primary factors that account for the growth of spending on Social Security and major healthcare
program - correct answer ✔Aging population, growth of healthcare cost per capita and e expansion of
subsidies provided through the healthcare exchanges created by the Affordable Care Act (ACA)
Aging population - correct answer ✔the most important factor driving spending over the next 25 year..
at aging alone will account for 56 % of projected growth in federal spending for major health programs
and Social Security through 2040
Growing health care cost - correct answer ✔accounts for 35 % of the growth of spending on Social
Security and the major healthcare programs over the next 25 year..Healthcare costs have grown less
rapidly in recent years due to a weak economy following the recession
, Growing health care cost - correct answer ✔The Congressional Budget Office (CBO) projects that
current-law spending on major healthcare programs will climb sharply over the next 25 years •Rising
more than 50 %•From 5.2 % of GDP in 2015 to 8.0 % of GDP in 2040•Healthcare spending by all sectors
of the economy will climb to 25 % of GDP by 2040.•Government•Business•Consumers
Expansion of federal support for health insurance - correct answer ✔Medicaid expansion and the
healthcare exchange subsidies, is the third factor behind the growth of federal healthcare spending.
•CBO projects that the expansion of federal support for health insurance is largely a near-term driver of
costs, and its projections show slower growth over time as enrollment stabilizes.
Scarcity - correct answer ✔a pervasive condition of human existence that exists because society has
unlimited wants and needs, but limited resources used for their satisfaction
Scarcity problem means - correct answer ✔1) that there's never enough resources to produce
everything that everyone would like produced •(2) that some people will have to do without some of
the resources that they want or need •(3) that doing one thing, producing one good, performing one
activity, forces society to give up something else•(4) that the same resources can not be used to
produce two different goods at the same time
Opportunity costs - correct answer ✔In microeconomics, given limited resources, choices must be
made among mutually exclusive alternatives. •The cost associated with the choice is the value of the
foregone alternative. •This valuation is a crucial component of determining and ensuring efficiency in
the market
Marginal analysis - correct answer ✔: Recognizes that choices are made incrementally. In this
environment, optimal decision making is based on the incremental benefits and the costs of an
alternative, where, in equilibrium, the incremental benefits equal the incremental costs of the
alternative
Marginal cost - correct answer ✔The change in cost resulting from a change in output by one unit.
Because fixed costs do not change with output, marginal cost is related to variable cost only
Question and answers verified to pass
2025/2026
Population health - correct answer ✔Focuses on public health, the health of a group of individuals,
including the distribution of such outcomes within the group
Individual Health Status - correct answer ✔can be measured by a physical examination of the person
along any of several dimensions such as presence of illness, risk factors mortality or morbidity, overall
health as determined through visual and biological testing
Economics - correct answer ✔can provide insights into the study of human behavior as it is impacted
by constraints and financial incentive
Economic analysis - correct answer ✔sis becomes an increasingly important tool in the study of factors
that affect health and health care of the American public.
3 primary factors that account for the growth of spending on Social Security and major healthcare
program - correct answer ✔Aging population, growth of healthcare cost per capita and e expansion of
subsidies provided through the healthcare exchanges created by the Affordable Care Act (ACA)
Aging population - correct answer ✔the most important factor driving spending over the next 25 year..
at aging alone will account for 56 % of projected growth in federal spending for major health programs
and Social Security through 2040
Growing health care cost - correct answer ✔accounts for 35 % of the growth of spending on Social
Security and the major healthcare programs over the next 25 year..Healthcare costs have grown less
rapidly in recent years due to a weak economy following the recession
, Growing health care cost - correct answer ✔The Congressional Budget Office (CBO) projects that
current-law spending on major healthcare programs will climb sharply over the next 25 years •Rising
more than 50 %•From 5.2 % of GDP in 2015 to 8.0 % of GDP in 2040•Healthcare spending by all sectors
of the economy will climb to 25 % of GDP by 2040.•Government•Business•Consumers
Expansion of federal support for health insurance - correct answer ✔Medicaid expansion and the
healthcare exchange subsidies, is the third factor behind the growth of federal healthcare spending.
•CBO projects that the expansion of federal support for health insurance is largely a near-term driver of
costs, and its projections show slower growth over time as enrollment stabilizes.
Scarcity - correct answer ✔a pervasive condition of human existence that exists because society has
unlimited wants and needs, but limited resources used for their satisfaction
Scarcity problem means - correct answer ✔1) that there's never enough resources to produce
everything that everyone would like produced •(2) that some people will have to do without some of
the resources that they want or need •(3) that doing one thing, producing one good, performing one
activity, forces society to give up something else•(4) that the same resources can not be used to
produce two different goods at the same time
Opportunity costs - correct answer ✔In microeconomics, given limited resources, choices must be
made among mutually exclusive alternatives. •The cost associated with the choice is the value of the
foregone alternative. •This valuation is a crucial component of determining and ensuring efficiency in
the market
Marginal analysis - correct answer ✔: Recognizes that choices are made incrementally. In this
environment, optimal decision making is based on the incremental benefits and the costs of an
alternative, where, in equilibrium, the incremental benefits equal the incremental costs of the
alternative
Marginal cost - correct answer ✔The change in cost resulting from a change in output by one unit.
Because fixed costs do not change with output, marginal cost is related to variable cost only
