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19 May 2026
MHA 710 - Healthcare Economics Exam 3 | 130
Questions with 100% Correct Answers | Verified |
Latest Update 2026
Which of the following statements about the distribution of physicians among specialties is true in
the United States?
a. The majority of physicians specialize in general/family practice.
b. There are twice as many generalists as there are specialists.
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.
e. None of the above. - CORRECT ANSWER-c. There are twice as many specialists as there are
generalists.
According to surveys by the Medical Group Management Association, the average primary care
physician earned approximately _______ in 2010.
a. $125,000
b. $150,000
c. $185,000
d. $200,000
e. $225,000. - CORRECT ANSWER-d. $200,000
Surgical specialists earn more than general/family practice physicians. Which of the following
statements is not true regarding this income differential?
a. Surgeons earn more because their practice costs, including medical malpractice insurance is
higher.
b. Surgeons earn more to compensate them for the extra years spent as residents.
c. Physicians' incomes are determined to a large extent by supply and demand conditions with
respect to each specialty.
d. Surgeons will always earn more than general practitioners because they are smarter than general
practitioners.
e. Surgeons earn more than general practitioners because cutting into people is messy. - CORRECT
ANSWER-d. Surgeons will always earn more than general practitioners because they are smarter
than general practitioners.
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19 May 2026
The rate of return on an investment in medical education
a. is inversely related to the length of time spent in formal schooling.
b. is inversely related to income.
c. will increase with an increase in the availability of student loans.
d. is much higher than the rate of return on an undergraduate business degree.
e. is inversely related to the number of years in the profession. - CORRECT ANSWER-e. is inversely
related to the number of years in the profession.
Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher
fees for them, and have higher total bills to patients. This practice of self-referral is an example of
a. moral hazard.
b. adverse selection.
c. res ipsa loquitur.
d. physician-induced demand.
e. cognitive dissonance. - CORRECT ANSWER-d. physician-induced demand.
The observed variations in practice patterns in different regions of the country are difficult to
eliminate
a. because of the many alternative treatment options available for most ailments.
b. due to the localized nature of most medical practice.
c. because it is difficult to change the preferences of physicians and patients.
d. the observed variations are so minor that they are of little concern to policy makers.
e. a, b, and c are true. - CORRECT ANSWER-e. a, b, and c are true.
To address the shortage of physicians on the horizon, it will be necessary to
a. build more medical schools.
b. provide more grants and scholarships for medical education.
c. allow the admission of more foreign-educated physicians.
d. all of the above. - CORRECT ANSWER-d. all of the above.
In 2010, the medical specialty that earned the highest rate of return on investment was
a. general primary care.
, Page 3 of 26
19 May 2026
b. Internal medicine.
c. Pediatrics.
d. orthopedic surgery.
e. none of the above. - CORRECT ANSWER-d. orthopedic surgery.
Suppose the number of medical school graduates continues to increase over the next decade.
Which of the following is true?
a. Physicians' salaries must fall.
b. Physicians' salaries must rise.
c. Physicians' salaries will fall only if the demand for medical services falls.
d. Physicians' salaries will fall if the demand for medical services rises more than the supply of
physicians rises.
e. Physicians' salaries will rise if the demand for medical services rises more than the supply of
physicians rises. - CORRECT ANSWER-e. Physicians' salaries will rise if the demand for medical
services rises more than the supply of physicians rises.
Physicians' salaries increased substantially over the decade 1995-2005 from an average of
$215,000 to $315,000. What is the best explanation for this?
a. Physicians were smarter in 2005 than in 1995.
b. The supply of physicians has increased.
c. The supply of physicians has decreased.
d. The demand for physicians has increased.
e. The demand for physicians has decreased. - CORRECT ANSWER-d. The demand for physicians
has increased.
Starting salaries for female OB/GYNs are higher than those of male OB/GYNs. What is the best
explanation for this?
a. Female OB/GYNs have more human capital than male OB/GYNs.
b. Female OB/GYNs are smarter than male OB/GYNs.
c. The demand for female OB/GYNs is greater than the demand for male OB/GYNs.
d. The demand for female OB/GYNs is less than the demand for male OB/GYNs.
e. More males are in OB/GYN residency programs than females. - CORRECT ANSWER-c. The
demand for female OB/GYNs is greater than the demand for male OB/GYNs.
19 May 2026
MHA 710 - Healthcare Economics Exam 3 | 130
Questions with 100% Correct Answers | Verified |
Latest Update 2026
Which of the following statements about the distribution of physicians among specialties is true in
the United States?
a. The majority of physicians specialize in general/family practice.
b. There are twice as many generalists as there are specialists.
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.
e. None of the above. - CORRECT ANSWER-c. There are twice as many specialists as there are
generalists.
According to surveys by the Medical Group Management Association, the average primary care
physician earned approximately _______ in 2010.
a. $125,000
b. $150,000
c. $185,000
d. $200,000
e. $225,000. - CORRECT ANSWER-d. $200,000
Surgical specialists earn more than general/family practice physicians. Which of the following
statements is not true regarding this income differential?
a. Surgeons earn more because their practice costs, including medical malpractice insurance is
higher.
b. Surgeons earn more to compensate them for the extra years spent as residents.
c. Physicians' incomes are determined to a large extent by supply and demand conditions with
respect to each specialty.
d. Surgeons will always earn more than general practitioners because they are smarter than general
practitioners.
e. Surgeons earn more than general practitioners because cutting into people is messy. - CORRECT
ANSWER-d. Surgeons will always earn more than general practitioners because they are smarter
than general practitioners.
, Page 2 of 26
19 May 2026
The rate of return on an investment in medical education
a. is inversely related to the length of time spent in formal schooling.
b. is inversely related to income.
c. will increase with an increase in the availability of student loans.
d. is much higher than the rate of return on an undergraduate business degree.
e. is inversely related to the number of years in the profession. - CORRECT ANSWER-e. is inversely
related to the number of years in the profession.
Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher
fees for them, and have higher total bills to patients. This practice of self-referral is an example of
a. moral hazard.
b. adverse selection.
c. res ipsa loquitur.
d. physician-induced demand.
e. cognitive dissonance. - CORRECT ANSWER-d. physician-induced demand.
The observed variations in practice patterns in different regions of the country are difficult to
eliminate
a. because of the many alternative treatment options available for most ailments.
b. due to the localized nature of most medical practice.
c. because it is difficult to change the preferences of physicians and patients.
d. the observed variations are so minor that they are of little concern to policy makers.
e. a, b, and c are true. - CORRECT ANSWER-e. a, b, and c are true.
To address the shortage of physicians on the horizon, it will be necessary to
a. build more medical schools.
b. provide more grants and scholarships for medical education.
c. allow the admission of more foreign-educated physicians.
d. all of the above. - CORRECT ANSWER-d. all of the above.
In 2010, the medical specialty that earned the highest rate of return on investment was
a. general primary care.
, Page 3 of 26
19 May 2026
b. Internal medicine.
c. Pediatrics.
d. orthopedic surgery.
e. none of the above. - CORRECT ANSWER-d. orthopedic surgery.
Suppose the number of medical school graduates continues to increase over the next decade.
Which of the following is true?
a. Physicians' salaries must fall.
b. Physicians' salaries must rise.
c. Physicians' salaries will fall only if the demand for medical services falls.
d. Physicians' salaries will fall if the demand for medical services rises more than the supply of
physicians rises.
e. Physicians' salaries will rise if the demand for medical services rises more than the supply of
physicians rises. - CORRECT ANSWER-e. Physicians' salaries will rise if the demand for medical
services rises more than the supply of physicians rises.
Physicians' salaries increased substantially over the decade 1995-2005 from an average of
$215,000 to $315,000. What is the best explanation for this?
a. Physicians were smarter in 2005 than in 1995.
b. The supply of physicians has increased.
c. The supply of physicians has decreased.
d. The demand for physicians has increased.
e. The demand for physicians has decreased. - CORRECT ANSWER-d. The demand for physicians
has increased.
Starting salaries for female OB/GYNs are higher than those of male OB/GYNs. What is the best
explanation for this?
a. Female OB/GYNs have more human capital than male OB/GYNs.
b. Female OB/GYNs are smarter than male OB/GYNs.
c. The demand for female OB/GYNs is greater than the demand for male OB/GYNs.
d. The demand for female OB/GYNs is less than the demand for male OB/GYNs.
e. More males are in OB/GYN residency programs than females. - CORRECT ANSWER-c. The
demand for female OB/GYNs is greater than the demand for male OB/GYNs.
