HEALTH ECONOMICS EXAM 1 QUESTIONS AND
ANSWERS SOLVED 100% CORRECT.
Why should we be concerned about the percent of GDP spent on healthcare?
Answer - 20% of GDP is spent on healthcare on healthcare. If you think about
spending 20% of your paycheck on something, it is major and it matters.
Production Function Answer - The relationship between inputs and outputs
Marginal Cost vs. Total cost Answer - the change in the total cost that arises
when the quantity produced is incremented by one unit
Diminishing Returns Answer - Increase at a decreasing rate; as the input
increases, the output also increases but at a lower rate
Production Possibility Curve Answer - A and B- Possible and efficient
C- Possible but inefficient
D- Impossible
Flat of the curve Answer - point where an increase in input will not make a
significant difference in output
What can economists contribute to the study of health issues? Answer - -
determine
- Scarcity
, - Opportunity cost
- Shortage and surplus
- Benefits and costs of competition
- Consumer choices
- Total vs marginal cost
- Law of diminishing marginal utility
- Law of diminishing returns
- Production function
Positive Statement Answer - Fact-based statement
Normative Statement Answer - Subjective, value-based statement
Opportunity Cost Answer - the cost associated with making one decision over
another
-ex: choose to study instead of going to the movies, the opportunity cost is
losing out on enjoying the movi
Price Elasticity Answer - %change in quantity/ % change in price
elastic Answer - elasticity greater than 1
inelastic Answer - elasticity less than 1
perfectly inelastic Answer - elasticity=0
unitarily elastic Answer - elasticity=1
ANSWERS SOLVED 100% CORRECT.
Why should we be concerned about the percent of GDP spent on healthcare?
Answer - 20% of GDP is spent on healthcare on healthcare. If you think about
spending 20% of your paycheck on something, it is major and it matters.
Production Function Answer - The relationship between inputs and outputs
Marginal Cost vs. Total cost Answer - the change in the total cost that arises
when the quantity produced is incremented by one unit
Diminishing Returns Answer - Increase at a decreasing rate; as the input
increases, the output also increases but at a lower rate
Production Possibility Curve Answer - A and B- Possible and efficient
C- Possible but inefficient
D- Impossible
Flat of the curve Answer - point where an increase in input will not make a
significant difference in output
What can economists contribute to the study of health issues? Answer - -
determine
- Scarcity
, - Opportunity cost
- Shortage and surplus
- Benefits and costs of competition
- Consumer choices
- Total vs marginal cost
- Law of diminishing marginal utility
- Law of diminishing returns
- Production function
Positive Statement Answer - Fact-based statement
Normative Statement Answer - Subjective, value-based statement
Opportunity Cost Answer - the cost associated with making one decision over
another
-ex: choose to study instead of going to the movies, the opportunity cost is
losing out on enjoying the movi
Price Elasticity Answer - %change in quantity/ % change in price
elastic Answer - elasticity greater than 1
inelastic Answer - elasticity less than 1
perfectly inelastic Answer - elasticity=0
unitarily elastic Answer - elasticity=1
