Page 1 of 25
19 May 2026
MHA 710 - Healthcare Economics midterm Exam |
130 Questions with 100% Correct Answers |
Verified | Latest Update 2026
Which of the following statements is true concerning the trend in community hospital care
between inpatient and outpatient services since the mid-1980s?
a. Both inpatient and outpatient services have been declining.
b. There has been no noticeable trend in either inpatient or outpatient services.
c. Both inpatient and outpatient services have been growing.
d. Outpatient services have been growing, while inpatient services have been declining.
e. Outpatient services have been declining, while inpatient services have been growing. - CORRECT
ANSWER-d. Outpatient services have been growing, while inpatient services have been declining.
The amount that Medicare pays a hospital for treating a Medicare patient is determined:
a. at the point when the diagnosis is made.
b. at the time of admission to the hospital.
c. before the patient sees a physician.
d. after the hospital bill is reviewed by Medicare auditors.
e. after medical services are provided. - CORRECT ANSWER-a. at the point when the diagnosis is
made.
Compared to the not-for-profit organizational form, the for-profit environment
a. allows for the transfer of assets.
b. lacks a profit motive.
c. gives shareholders higher returns on their investment
d. provides patients with higher quality of care.
e. does not provide charity care. - CORRECT ANSWER-a. allows for the transfer of assets.
What is the most significant cost of attending medical school?
a. Books and incidentals
b. Room and board
c. Tuition and fees
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19 May 2026
d. The income foregone - CORRECT ANSWER-d. The income foregone
Using the physician-control model to explain hospital behavior leads to which of the following
conclusions?
a. Other medical inputs tend to be overused to maximize physicians' productivity.
b. All investment decisions will be based on optimal resource use.
c. The use of operating rooms will be maximized with little excess capacity.
d. Physicians will strive to use the nursing staff efficiently. - CORRECT ANSWER-a. Other medical
inputs tend to be overused to maximize physicians' productivity.
Economies of scale exist when:
a. long-run average costs decline as output increases.
b. long-run average costs increase as output increases.
c. long-run average costs are constant.
d. short-run average costs decline.
e. short-run average costs increase. - CORRECT ANSWER-a. long-run average costs decline as
output increases.
Which of the following statements about the distribution of physicians among specialties is true in
the United States?
a. There are twice as many generalists as there are specialists.
b. The majority of physicians specialize in general/family practice.
c. There are twice as many specialists as there are generalists.
d. The specialty distribution in the United States is similar to that of the rest of the world. -
CORRECT ANSWER-c. There are twice as many specialists as there are generalists.
Starting salaries for female obstetricians/gynecologists are higher than those of male
obstetricians/gynecologists . What is the best explanation for this?
a. There are more males in obstetrics/gynecology residency programs than females.
b. The demand for female obstetricians/gynecologists is greater than the demand for male
obstetricians/gynecologists .
c. The demand for female obstetricians/gynecologists is less than the demand for male
obstetricians/gynecologists .
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19 May 2026
d. Female obstetricians/gynecologists have more human capital than male
obstetricians/gynecologists . - CORRECT ANSWER-b. The demand for female
obstetricians/gynecologists is greater than the demand for male obstetricians/gynecologists .
The rate of return on an investment in medical education:
a. will increase with an increase in the availability of student loans.
b. is inversely related to the number of years in the profession.
c. is much higher than the rate of return on an undergraduate business degree.
d. is inversely related to income.
e. is inversely related to the length of time spent in formal schooling - CORRECT ANSWER-e. is
inversely related to the length of time spent in formal schooling
Suppose the market for nursing services in a local community is so dominated by a single
community hospital that, for all practical purposes, it is considered a monopsony. Using the
diagram below, answer the question.
What is the equilibrium wage and level of employment under monopsony?
a. W0 and E1
b. W2 and E0
c. W0 and E0
d. W0 and E2
e. W1 and E1 - CORRECT ANSWER-c. W0 and E0
The merger of two community hospitals located in the same geographic market is called:
a. a conglomerate merger.
b. a leveraged buyout.
c. horizontal integration.
d. vertical integration.
e. a real shame, as one of the hospitals will likely close. - CORRECT ANSWER-c. horizontal
integration.
The expanded use of prospective payment in hospitals has changed the nature of competition in
that market. Which of the following statements is true?
19 May 2026
MHA 710 - Healthcare Economics midterm Exam |
130 Questions with 100% Correct Answers |
Verified | Latest Update 2026
Which of the following statements is true concerning the trend in community hospital care
between inpatient and outpatient services since the mid-1980s?
a. Both inpatient and outpatient services have been declining.
b. There has been no noticeable trend in either inpatient or outpatient services.
c. Both inpatient and outpatient services have been growing.
d. Outpatient services have been growing, while inpatient services have been declining.
e. Outpatient services have been declining, while inpatient services have been growing. - CORRECT
ANSWER-d. Outpatient services have been growing, while inpatient services have been declining.
The amount that Medicare pays a hospital for treating a Medicare patient is determined:
a. at the point when the diagnosis is made.
b. at the time of admission to the hospital.
c. before the patient sees a physician.
d. after the hospital bill is reviewed by Medicare auditors.
e. after medical services are provided. - CORRECT ANSWER-a. at the point when the diagnosis is
made.
Compared to the not-for-profit organizational form, the for-profit environment
a. allows for the transfer of assets.
b. lacks a profit motive.
c. gives shareholders higher returns on their investment
d. provides patients with higher quality of care.
e. does not provide charity care. - CORRECT ANSWER-a. allows for the transfer of assets.
What is the most significant cost of attending medical school?
a. Books and incidentals
b. Room and board
c. Tuition and fees
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19 May 2026
d. The income foregone - CORRECT ANSWER-d. The income foregone
Using the physician-control model to explain hospital behavior leads to which of the following
conclusions?
a. Other medical inputs tend to be overused to maximize physicians' productivity.
b. All investment decisions will be based on optimal resource use.
c. The use of operating rooms will be maximized with little excess capacity.
d. Physicians will strive to use the nursing staff efficiently. - CORRECT ANSWER-a. Other medical
inputs tend to be overused to maximize physicians' productivity.
Economies of scale exist when:
a. long-run average costs decline as output increases.
b. long-run average costs increase as output increases.
c. long-run average costs are constant.
d. short-run average costs decline.
e. short-run average costs increase. - CORRECT ANSWER-a. long-run average costs decline as
output increases.
Which of the following statements about the distribution of physicians among specialties is true in
the United States?
a. There are twice as many generalists as there are specialists.
b. The majority of physicians specialize in general/family practice.
c. There are twice as many specialists as there are generalists.
d. The specialty distribution in the United States is similar to that of the rest of the world. -
CORRECT ANSWER-c. There are twice as many specialists as there are generalists.
Starting salaries for female obstetricians/gynecologists are higher than those of male
obstetricians/gynecologists . What is the best explanation for this?
a. There are more males in obstetrics/gynecology residency programs than females.
b. The demand for female obstetricians/gynecologists is greater than the demand for male
obstetricians/gynecologists .
c. The demand for female obstetricians/gynecologists is less than the demand for male
obstetricians/gynecologists .
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19 May 2026
d. Female obstetricians/gynecologists have more human capital than male
obstetricians/gynecologists . - CORRECT ANSWER-b. The demand for female
obstetricians/gynecologists is greater than the demand for male obstetricians/gynecologists .
The rate of return on an investment in medical education:
a. will increase with an increase in the availability of student loans.
b. is inversely related to the number of years in the profession.
c. is much higher than the rate of return on an undergraduate business degree.
d. is inversely related to income.
e. is inversely related to the length of time spent in formal schooling - CORRECT ANSWER-e. is
inversely related to the length of time spent in formal schooling
Suppose the market for nursing services in a local community is so dominated by a single
community hospital that, for all practical purposes, it is considered a monopsony. Using the
diagram below, answer the question.
What is the equilibrium wage and level of employment under monopsony?
a. W0 and E1
b. W2 and E0
c. W0 and E0
d. W0 and E2
e. W1 and E1 - CORRECT ANSWER-c. W0 and E0
The merger of two community hospitals located in the same geographic market is called:
a. a conglomerate merger.
b. a leveraged buyout.
c. horizontal integration.
d. vertical integration.
e. a real shame, as one of the hospitals will likely close. - CORRECT ANSWER-c. horizontal
integration.
The expanded use of prospective payment in hospitals has changed the nature of competition in
that market. Which of the following statements is true?
