HEALTH ECONOMICS MID-TERM (QUIZZES CH. 1-9) | QUESTIONS AND ANSWERS | WITH COMPLETE SOLUTIONS 2026.

HEALTH ECONOMICS MID-TERM (QUIZZES CH. 1-9) | QUESTIONS
AND ANSWERS | WITH COMPLETE SOLUTIONS 2026.




Quiz 1 (Chapters 1, 2, 3) Answer - ALL CORRECT ANSWERS!


Major features of economic analysis include which of the following? (Multiple
Answers)
a.) Irrational decision-making
b.) Marginal analysis
c.) Scarcity of resources
d.) Use of models
e.) Rational decision making Answer - b.) Marginal analysis
c.) Scarcity of resources
d.) Use of models
e.) Rational decision making


True or False
The RAND Health Insurance Experiment demonstrated that prices do not
impact the demand for medical care. Answer - False


The RAND showed that modest cost sharing (out-of-pocket pay) reduces use of
services with negligible effects on health for the average person.


Variables that shift the supply of a good include which of the following?
(Multiple Answers)

, a.) Prices of production-related goods
b.) Technological change
c.) Size of the industry
d.) Input prices
e.) Income Answer - a.) Prices of production-related goods
b.) Technological change
c.) Size of the industry
d.) Input prices


Variables that can shift demand for a good include which of the following?
(Multiple Answers)
a.) Technological change
b.) Insurance
c.) Prices of related goods
d.) Income
e.) Tastes Answer - b.) Insurance
c.) Prices of related goods
d.) Income
e.) Tastes


Having a price elasticity that is infinitely large implies that the demand curve is
_____________. Answer - Perfectly Flat


True or False
In the US, health expenditures are growing as a percentage of GDP. Answer -
True