MHA710/ MHA 710 EXAM 1
EXAM QUESTIONS AND CORRECT
VERIFIED SOLUTIONS TESTED AND
GRADED A+ LATEST EXAM UPDATE
The tax penalty - ✔✔✔ Correct Answer > was eliminated after the end
of 2018, under the terms of the Tax Cuts and Jobs Act of 2017.
Even in the US, approximately, what percent of medical care is
purchased through insurance, government programs or other third
party insurers? - ✔✔✔ Correct Answer > 90
In the United States, out-of-pocket costs only account for 10.6 percent of
health care spending, - ✔✔✔ Correct Answer > while the other 89.4
percent is made up of insurance or government-run institutions in 2020.
The 1974 federal legislation that exempted employers from certain state
laws governing health insurance was: - ✔✔✔ Correct
Page 1 of 49
,Answer > ERISA
Passed to regulate the corporate use of pension funds, - ✔✔✔
Correct Answer > the Employee Retirement and Income Security Act
(ERISA) of 1974 also exempted self-insured health plans from state-
level health insurance regulations. Today, over two-thirds of all workers
with employer-sponsored insurance are covered by self-insured plans.
Assuming providers will accommodate patient desires, what effect
would a binding price ceiling have on the health care market? - ✔✔✔
Correct Answer > Price will decrease to adhere to the price ceiling and
quantity will increase.
Because the price ceiling is binding - ✔✔✔ Correct Answer > the
control would be effective in reducing price in the health care market.
Under the assumption that health care providers will accommodate
patient desires, we can infer that a greater quantity of health services
will be offered at the restricted price.
Page 2 of 49
,Which of the following measurements of health care spending adjusts
for the population size? - ✔✔✔ Correct Answer > Per capita
Nominal and real terms of measurement indicate data with and without
inflation - ✔✔✔ Correct Answer > The proportion of national spending
on health care is commonly represented as a percentage of GDP, and
national measurements indicate total spending across the country. The
per capita measurement yields the average health care spending by an
individual in the designated population.
Opportunity cost measures: - ✔✔✔ Correct Answer > foregone
opportunities.
Opportunity cost - ✔✔✔ Correct Answer > is the cost of a decision
based on the value of the next best alternative use of the resources.
Page 3 of 49
, Which of the following is NOT a potential result of everincreasing
health care pricing? - ✔✔✔ Correct Answer > Reduced incentives
for innovation.
Suppose angioplasty and coronary artery bypass graft (CABG) surgery
are substitute treatment alternatives for coronary artery disease. What
should happen to the equilibrium price and quantity of angioplasty
procedures if a new CABG technique is introduced that is less invasive
(requiring a 4-inch incision under the breast bone rather than cracking
open the patient's rib cage) and requires one-third the recovery period of
regular CABG surgery? - ✔✔✔ Correct Answer > Both price and
quantity will decrease.
Continually increasing health care prices could result in - ✔✔✔
Correct Answer > reduced affordability and accessibility to care, a
greater share of the population without insurance, and a tax increase to
cover the growing burden of health care. However, high prices in health
care serve as a financial incentive to innovation.
Self-insurance refers to the practice of setting aside funds to pay for
medical care expenses instead of paying premiums to an insurance
Page 4 of 49
EXAM QUESTIONS AND CORRECT
VERIFIED SOLUTIONS TESTED AND
GRADED A+ LATEST EXAM UPDATE
The tax penalty - ✔✔✔ Correct Answer > was eliminated after the end
of 2018, under the terms of the Tax Cuts and Jobs Act of 2017.
Even in the US, approximately, what percent of medical care is
purchased through insurance, government programs or other third
party insurers? - ✔✔✔ Correct Answer > 90
In the United States, out-of-pocket costs only account for 10.6 percent of
health care spending, - ✔✔✔ Correct Answer > while the other 89.4
percent is made up of insurance or government-run institutions in 2020.
The 1974 federal legislation that exempted employers from certain state
laws governing health insurance was: - ✔✔✔ Correct
Page 1 of 49
,Answer > ERISA
Passed to regulate the corporate use of pension funds, - ✔✔✔
Correct Answer > the Employee Retirement and Income Security Act
(ERISA) of 1974 also exempted self-insured health plans from state-
level health insurance regulations. Today, over two-thirds of all workers
with employer-sponsored insurance are covered by self-insured plans.
Assuming providers will accommodate patient desires, what effect
would a binding price ceiling have on the health care market? - ✔✔✔
Correct Answer > Price will decrease to adhere to the price ceiling and
quantity will increase.
Because the price ceiling is binding - ✔✔✔ Correct Answer > the
control would be effective in reducing price in the health care market.
Under the assumption that health care providers will accommodate
patient desires, we can infer that a greater quantity of health services
will be offered at the restricted price.
Page 2 of 49
,Which of the following measurements of health care spending adjusts
for the population size? - ✔✔✔ Correct Answer > Per capita
Nominal and real terms of measurement indicate data with and without
inflation - ✔✔✔ Correct Answer > The proportion of national spending
on health care is commonly represented as a percentage of GDP, and
national measurements indicate total spending across the country. The
per capita measurement yields the average health care spending by an
individual in the designated population.
Opportunity cost measures: - ✔✔✔ Correct Answer > foregone
opportunities.
Opportunity cost - ✔✔✔ Correct Answer > is the cost of a decision
based on the value of the next best alternative use of the resources.
Page 3 of 49
, Which of the following is NOT a potential result of everincreasing
health care pricing? - ✔✔✔ Correct Answer > Reduced incentives
for innovation.
Suppose angioplasty and coronary artery bypass graft (CABG) surgery
are substitute treatment alternatives for coronary artery disease. What
should happen to the equilibrium price and quantity of angioplasty
procedures if a new CABG technique is introduced that is less invasive
(requiring a 4-inch incision under the breast bone rather than cracking
open the patient's rib cage) and requires one-third the recovery period of
regular CABG surgery? - ✔✔✔ Correct Answer > Both price and
quantity will decrease.
Continually increasing health care prices could result in - ✔✔✔
Correct Answer > reduced affordability and accessibility to care, a
greater share of the population without insurance, and a tax increase to
cover the growing burden of health care. However, high prices in health
care serve as a financial incentive to innovation.
Self-insurance refers to the practice of setting aside funds to pay for
medical care expenses instead of paying premiums to an insurance
Page 4 of 49
