MHA 710 Exam 1 EXAM LATEST (2026)
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Terms in this set (109)
What is "economics"? A Map for decision making. Economics analyzes
the allocation of scarce resources.
What are some of the specific 1. The central roles of risk and uncertainty
challenges faced by managers in
healthcare? 2. The complexities created by insurance
3. The perils produced by information
asymmetries
4. The problems posed by not-for-profit
organizations
5. The rapid and confusing course of technical
and institutional change
,What does asymmetric information When one party in a transaction has less
mean? Can you give an example? information than the other party. For example,
physicians and other healthcare providers usually
understand patients' medical options better than
patients do. Unaware of their choices, patients
may accept recommendations for therapies that
are not cost-effective or, recognizing their
vulnerability to physicians' self-serving advice,
may resist recommendations made in their best
interest.
What is adverse selection? A situation that occurs when buyers have better
information than sellers. For example, high-risk
consumers are willing to pay more for insurance
than low-risk consumers are. (Organizations that
have difficulty distinguishing high-risk from low-
risk consumers are unlikely to be profitable.)
What is the problem of scarcity? Demand for a good or service is greater than the
availability
What does it mean to say people focuses on individuals' efforts to best realize their
are assumed to make choices goals, given their resources.
rationally?
What does it mean to says Anything useful in consumption or production
resources are scarce? that has alternative uses.
What is opportunity cost? Potential loss from a missed opportunity. Passing
up the next best choice.
, What does "marginal" refer to? The examination of the costs and benefits
through a small change in the production of
goods
What does efficiency refer to? No way to rearrange production of goods in a
way that makes one person more better off
without making somebody else worse off. How
well an economy uses scare resources to meet
the needs/wants of their customers
How do positive economic Positive economics is objective while normative
statements differ from normative economics is subjective. Facts/ What is vs What
economic statements? should be
How can economics be applied to Describe, Explain, Evaluate, Plan
the health sector?
As we progress through the Social determinants of health, few insurance
chapters, think about the special companies that providers rely on, not a perfectly
characteristics that apply to the competitive market
health sector that might limit the
applicability of traditional economic
models.
How are healthcare products both Products (goods and services are considered
outputs and inputs? Can you give products) are commonly both inputs and outputs.
an example? For example, a surgical tool is an input into a
surgery and an output of a surgical tool company.
Similarly, the surgery itself can be considered an
output of the surgical team or an input into the
health of the patient.
COMPLETE QUESTIONS With 100% Verified
Solutions
Save
Terms in this set (109)
What is "economics"? A Map for decision making. Economics analyzes
the allocation of scarce resources.
What are some of the specific 1. The central roles of risk and uncertainty
challenges faced by managers in
healthcare? 2. The complexities created by insurance
3. The perils produced by information
asymmetries
4. The problems posed by not-for-profit
organizations
5. The rapid and confusing course of technical
and institutional change
,What does asymmetric information When one party in a transaction has less
mean? Can you give an example? information than the other party. For example,
physicians and other healthcare providers usually
understand patients' medical options better than
patients do. Unaware of their choices, patients
may accept recommendations for therapies that
are not cost-effective or, recognizing their
vulnerability to physicians' self-serving advice,
may resist recommendations made in their best
interest.
What is adverse selection? A situation that occurs when buyers have better
information than sellers. For example, high-risk
consumers are willing to pay more for insurance
than low-risk consumers are. (Organizations that
have difficulty distinguishing high-risk from low-
risk consumers are unlikely to be profitable.)
What is the problem of scarcity? Demand for a good or service is greater than the
availability
What does it mean to say people focuses on individuals' efforts to best realize their
are assumed to make choices goals, given their resources.
rationally?
What does it mean to says Anything useful in consumption or production
resources are scarce? that has alternative uses.
What is opportunity cost? Potential loss from a missed opportunity. Passing
up the next best choice.
, What does "marginal" refer to? The examination of the costs and benefits
through a small change in the production of
goods
What does efficiency refer to? No way to rearrange production of goods in a
way that makes one person more better off
without making somebody else worse off. How
well an economy uses scare resources to meet
the needs/wants of their customers
How do positive economic Positive economics is objective while normative
statements differ from normative economics is subjective. Facts/ What is vs What
economic statements? should be
How can economics be applied to Describe, Explain, Evaluate, Plan
the health sector?
As we progress through the Social determinants of health, few insurance
chapters, think about the special companies that providers rely on, not a perfectly
characteristics that apply to the competitive market
health sector that might limit the
applicability of traditional economic
models.
How are healthcare products both Products (goods and services are considered
outputs and inputs? Can you give products) are commonly both inputs and outputs.
an example? For example, a surgical tool is an input into a
surgery and an output of a surgical tool company.
Similarly, the surgery itself can be considered an
output of the surgical team or an input into the
health of the patient.
