MHA 707 EXAM C QUESTIONS
WITH CORRECT ANSWERS 2026
Moral Hazard - CORRECT ANSWER -
When the act of insuring an event increases the likelihood that the event will happen
behaving different when you know someone is taking the risk (induced demand)
Adverse Selection - CORRECT ANSWER -
the situation in which one party to a transaction takes advantage of knowing more than the other par
ty to the transaction
the sicker people likely want more insurance, compared to those who are healthy
Pooling of Risk - CORRECT ANSWER -Allows individuals to share risk, i.e., insurance companies
National Health Expenditure Accounts (NHEA) - CORRECT ANSWER -
Provides official estimates of health care spending in the US. It measures health care consumption and
health care investment.
NHEA Benefits - CORRECT ANSWER -
Comprehensive: includes all major components of health care system in unified, mutually exclusive, an
d exhaustive structure
Multidimensional: encompasses expenditures as well as payers
Consistent: applies a common set of definitions that permits longitudinal comparisons
Published by DHHS
Accounts in the NHEA - CORRECT ANSWER -National Health Expenditures: NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC
, National Health Expenditures: NHE - CORRECT ANSWER -
all health care consumption and investments in medical structures and equipment and noncommercial
health services and biomedical research
NHE - HCE = Amount of investment in the medical sector of economy (buildings, research, equipment)
Health Consumption Expenditures: HCE - CORRECT ANSWER -
a subset of NHE, includes personal health care spending, government administration and net cost of p
rivate health insurance and public health activities
Personal Health Care: PHC - CORRECT ANSWER -
subset of HCE, including all medical goods and service that's used to diagnose, treat, and prevent heal
th problems of a specific person
How much NHE spent on Health Care? - CORRECT ANSWER -$3.49 Trillion
Per capita amount: over $10k
% of GDP: 18%
Buying Power: $1,200 when adjusted by CPI
Largest contributors to the Personal Health Care (PHC) - CORRECT ANSWER -
hospitalization, physician services, Rx, other health care goods and services
Whatx accountedx forx thex largestx sharex ofxNHE?x -x CORRECTx ANSWERx -
Hospitalx Care:x 33%xofxspending
Professionalx Services:x 20%x doctorsx NHE
Retailx Rx:x 10.5%
Threex Categoriesx ofxPHCx increasedxasx ax sharex ofxNHEx-
x CORRECTx ANSWERx -
Healthx Residentialxandx Personalx Care:x 5.2%x ofxNHE
Netx Costx ofxPrivatex HealthxIns:x 6.6%xofxNHE
Homex HealthxCare:x 2.8%xofx NHE
WITH CORRECT ANSWERS 2026
Moral Hazard - CORRECT ANSWER -
When the act of insuring an event increases the likelihood that the event will happen
behaving different when you know someone is taking the risk (induced demand)
Adverse Selection - CORRECT ANSWER -
the situation in which one party to a transaction takes advantage of knowing more than the other par
ty to the transaction
the sicker people likely want more insurance, compared to those who are healthy
Pooling of Risk - CORRECT ANSWER -Allows individuals to share risk, i.e., insurance companies
National Health Expenditure Accounts (NHEA) - CORRECT ANSWER -
Provides official estimates of health care spending in the US. It measures health care consumption and
health care investment.
NHEA Benefits - CORRECT ANSWER -
Comprehensive: includes all major components of health care system in unified, mutually exclusive, an
d exhaustive structure
Multidimensional: encompasses expenditures as well as payers
Consistent: applies a common set of definitions that permits longitudinal comparisons
Published by DHHS
Accounts in the NHEA - CORRECT ANSWER -National Health Expenditures: NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC
, National Health Expenditures: NHE - CORRECT ANSWER -
all health care consumption and investments in medical structures and equipment and noncommercial
health services and biomedical research
NHE - HCE = Amount of investment in the medical sector of economy (buildings, research, equipment)
Health Consumption Expenditures: HCE - CORRECT ANSWER -
a subset of NHE, includes personal health care spending, government administration and net cost of p
rivate health insurance and public health activities
Personal Health Care: PHC - CORRECT ANSWER -
subset of HCE, including all medical goods and service that's used to diagnose, treat, and prevent heal
th problems of a specific person
How much NHE spent on Health Care? - CORRECT ANSWER -$3.49 Trillion
Per capita amount: over $10k
% of GDP: 18%
Buying Power: $1,200 when adjusted by CPI
Largest contributors to the Personal Health Care (PHC) - CORRECT ANSWER -
hospitalization, physician services, Rx, other health care goods and services
Whatx accountedx forx thex largestx sharex ofxNHE?x -x CORRECTx ANSWERx -
Hospitalx Care:x 33%xofxspending
Professionalx Services:x 20%x doctorsx NHE
Retailx Rx:x 10.5%
Threex Categoriesx ofxPHCx increasedxasx ax sharex ofxNHEx-
x CORRECTx ANSWERx -
Healthx Residentialxandx Personalx Care:x 5.2%x ofxNHE
Netx Costx ofxPrivatex HealthxIns:x 6.6%xofxNHE
Homex HealthxCare:x 2.8%xofx NHE
