MHA 707 EXAM C
150+ (2026/2027 Edition) Exam Prep Bank | 100% Correct Solutions |
Expert Rationales
100% Guarantee Pass
📋 DOCUMENT OVERVIEW 150 Qs
This document, "MHA 707 Exam C," covers key topics in healthcare policy and economics, including
health expenditure data, the National Health Expenditure accounts (NHEA), and healthcare spending
trends. The document provides 150 questions with correct answers and detailed explanations, offering a
comprehensive review of these concepts. Students can use this resource to study, review, and gain a
deeper understanding of the material, making it an effective tool for exam preparation and knowledge
consolidation.
✓ Verified Answers ✓ Exam Ready ✓ Study Guide
Trusted by thousands of students and professionals worldwide
EXAM QUESTIONS
QUESTION 1
What department publishes data annually on total health expenditures?
CORRECT ANSWER
DHHS publishes health expenditures known as National Health Expenditure accounts (NHEA).
RATIONALE: The Department of Health and Human Services (DHHS) is responsible for publishing data on total health
expenditures because it oversees the nation's healthcare system and is the primary authority on healthcare-related
economic data. The National Health Expenditure accounts (NHEA) are a key publication of the Centers for Medicare &
Medicaid Services (CMS), a subsidiary of DHHS, which provides an annual report on healthcare spending in the United
States.
QUESTION 2
What is the goal for the NHEA?
CORRECT ANSWER
To measure spending on health care consumption and healthcare investment in the medical sector.
Trusted by thousands of students and professionals worldwide Page 1 of 40
, RATIONALE: The NHEA (National Health Expenditure Accounts) aims to provide a comprehensive understanding of
healthcare spending by distinguishing between consumption, which refers to direct healthcare services, and investment,
which encompasses healthcare infrastructure and services that promote long-term health outcomes. By making this
distinction, the NHEA can accurately capture the total healthcare spending in a given year, facilitating informed policy
decisions and resource allocation.
QUESTION 3
Healthcare spending has
CORRECT ANSWER
Increased in the US since 1960
RATIONALE: The correct answer is supported by historical data showing a consistent upward trend in healthcare
spending in the US over the past six decades, driven by factors such as advancements in medical technology, an aging
population, and increasing healthcare demand. This trend is evident in various studies and reports, including those by
the Centers for Medicare and Medicaid Services (CMS) and the Organization for Economic Cooperation and Development
(OECD).
QUESTION 4
In 2017 the NHE was approximately
CORRECT ANSWER
$34.9 trillion, 17.9% of GDP, and 10,379 per capita
RATIONALE: This answer is based on the National Health Expenditure (NHE) data for 2017, which measures the total
amount spent on healthcare services in the United States. The figure of "$34.9 trillion, 17.9% of GDP, and $10,379 per
capita" represents the estimated total expenditure, healthcare spending as a percentage of the country's Gross
Domestic Product (GDP), and the average cost per person, respectively.
QUESTION 5
In 1960 spending per capita was
CORRECT ANSWER
$146 and adjusted for inflation is $1207
RATIONALE: The statement compares $146 in 1960 to its equivalent value in the present day, taking into account
inflation, which is a sustained increase in the general price level of goods and services in an economy over time. By
adjusting $146 for inflation, we get a more accurate representation of its purchasing power in today's dollars, allowing
us to make meaningful comparisons across different time periods.
QUESTION 6
The per capita spending is
CORRECT ANSWER
One third of the per capita income
Trusted by thousands of students and professionals worldwide Page 2 of 40
, RATIONALE: The question "The per capita spending is" is incomplete, implying that per capita spending is being
compared or related to something else. The correct completion of the question would be "The per capita spending is
one third of the per capita income," which suggests that per capita spending is a fraction of per capita income, not the
other way around.
QUESTION 7
What did the decrease in spending on healthcare correlate with in 1991
CORRECT ANSWER
The advent of of managed care and its downward pressure on both physician and hospital usage
RATIONALE: The decrease in spending on healthcare in 1991 correlated with the advent of managed care, which placed
downward pressure on physician and hospital usage by introducing cost-control measures and alternative payment
structures to reduce unnecessary services. This shift towards managed care led to a decrease in healthcare utilization,
resulting in lower spending, making it a direct cause-and-effect relationship.
QUESTION 8
A tool to analyze the drivers of cost and their increases
CORRECT ANSWER
Cost=Price X Quantity
RATIONALE: The relationship "Cost=Price X Quantity" is correct because it represents the fundamental principle of
accounting that total cost is the product of the price per unit and the number of units purchased or sold. This formula
accurately captures the essence of cost drivers, as changes in price or quantity will directly impact the overall cost,
making it a crucial tool for analyzing and understanding cost increases.
QUESTION 9
What proportion of expenditures goes toward investments, a category that includes research and
structures and equipment
CORRECT ANSWER
5% to 10%
RATIONALE: This proportion is generally accepted due to the accounting principle of matching revenues with the costs
incurred to generate those revenues, which typically involves allocating a significant portion of expenses towards
investments, such as research and development, to future revenue-generating activities. In many industries, especially
those with high research and development expenses, such as technology and pharmaceutical companies, around 5% to
10% of total expenditures are allocated towards investments that will likely have a long-term impact on the company's
revenue streams.
QUESTION 10
What has accounted for the largest share of NHE since 1960
CORRECT ANSWER
Trusted by thousands of students and professionals worldwide Page 3 of 40
, Hospital care at about 33%
RATIONALE: The correct answer, "Hospital care at about 33%", is supported by the fact that over time, healthcare
spending in the United States has shifted from hospital care to other areas such as physician services, pharmaceuticals,
and administrative costs. This shift is largely due to advances in medical technology, changing healthcare practices, and
an increased focus on preventive care and specialty services.
QUESTION 11
What accounted for the second largest share of NHE
CORRECT ANSWER
Professional services i.e physician services, at 26%
RATIONALE: The phrase "Professional services i.e physician services, at 26%" being the correct answer implies that the
second largest share of the National Healthcare Expenditure (NHE) was attributed to the costs associated with medical
professionals, such as physicians, who provide direct patient care. This classification is likely based on the significant
role that physician services play in healthcare delivery, accounting for a substantial portion of total healthcare spending.
QUESTION 12
What accounted for the third largest share of NHE
CORRECT ANSWER
Retail prescription drugs
RATIONALE: Retail prescription drugs are a significant expense in the US healthcare system, accounting for a
substantial portion of the National Health Expenditure (NHE) due to the high cost of medications, particularly for chronic
conditions. The high cost of prescription drugs, combined with the large number of people relying on them, contributes
to their significant share of the NHE.
QUESTION 13
What has increased the share of NHE
CORRECT ANSWER
Residential and personal care services which includes ambulance providers and care delivered in
residential care facilities, as well as nontraditional settings such as community centers and schools
RATIONALE: The share of National Health Expenditures (NHE) has increased due to the growing demand for residential
and personal care services, as aging populations require more long-term care and support in various settings. This
increased demand, particularly in non-traditional settings, drives up healthcare expenditures, thereby contributing to the
overall rise in NHE.
QUESTION 14
The administrative costs in the U.S are
CORRECT ANSWER
Trusted by thousands of students and professionals worldwide Page 4 of 40
150+ (2026/2027 Edition) Exam Prep Bank | 100% Correct Solutions |
Expert Rationales
100% Guarantee Pass
📋 DOCUMENT OVERVIEW 150 Qs
This document, "MHA 707 Exam C," covers key topics in healthcare policy and economics, including
health expenditure data, the National Health Expenditure accounts (NHEA), and healthcare spending
trends. The document provides 150 questions with correct answers and detailed explanations, offering a
comprehensive review of these concepts. Students can use this resource to study, review, and gain a
deeper understanding of the material, making it an effective tool for exam preparation and knowledge
consolidation.
✓ Verified Answers ✓ Exam Ready ✓ Study Guide
Trusted by thousands of students and professionals worldwide
EXAM QUESTIONS
QUESTION 1
What department publishes data annually on total health expenditures?
CORRECT ANSWER
DHHS publishes health expenditures known as National Health Expenditure accounts (NHEA).
RATIONALE: The Department of Health and Human Services (DHHS) is responsible for publishing data on total health
expenditures because it oversees the nation's healthcare system and is the primary authority on healthcare-related
economic data. The National Health Expenditure accounts (NHEA) are a key publication of the Centers for Medicare &
Medicaid Services (CMS), a subsidiary of DHHS, which provides an annual report on healthcare spending in the United
States.
QUESTION 2
What is the goal for the NHEA?
CORRECT ANSWER
To measure spending on health care consumption and healthcare investment in the medical sector.
Trusted by thousands of students and professionals worldwide Page 1 of 40
, RATIONALE: The NHEA (National Health Expenditure Accounts) aims to provide a comprehensive understanding of
healthcare spending by distinguishing between consumption, which refers to direct healthcare services, and investment,
which encompasses healthcare infrastructure and services that promote long-term health outcomes. By making this
distinction, the NHEA can accurately capture the total healthcare spending in a given year, facilitating informed policy
decisions and resource allocation.
QUESTION 3
Healthcare spending has
CORRECT ANSWER
Increased in the US since 1960
RATIONALE: The correct answer is supported by historical data showing a consistent upward trend in healthcare
spending in the US over the past six decades, driven by factors such as advancements in medical technology, an aging
population, and increasing healthcare demand. This trend is evident in various studies and reports, including those by
the Centers for Medicare and Medicaid Services (CMS) and the Organization for Economic Cooperation and Development
(OECD).
QUESTION 4
In 2017 the NHE was approximately
CORRECT ANSWER
$34.9 trillion, 17.9% of GDP, and 10,379 per capita
RATIONALE: This answer is based on the National Health Expenditure (NHE) data for 2017, which measures the total
amount spent on healthcare services in the United States. The figure of "$34.9 trillion, 17.9% of GDP, and $10,379 per
capita" represents the estimated total expenditure, healthcare spending as a percentage of the country's Gross
Domestic Product (GDP), and the average cost per person, respectively.
QUESTION 5
In 1960 spending per capita was
CORRECT ANSWER
$146 and adjusted for inflation is $1207
RATIONALE: The statement compares $146 in 1960 to its equivalent value in the present day, taking into account
inflation, which is a sustained increase in the general price level of goods and services in an economy over time. By
adjusting $146 for inflation, we get a more accurate representation of its purchasing power in today's dollars, allowing
us to make meaningful comparisons across different time periods.
QUESTION 6
The per capita spending is
CORRECT ANSWER
One third of the per capita income
Trusted by thousands of students and professionals worldwide Page 2 of 40
, RATIONALE: The question "The per capita spending is" is incomplete, implying that per capita spending is being
compared or related to something else. The correct completion of the question would be "The per capita spending is
one third of the per capita income," which suggests that per capita spending is a fraction of per capita income, not the
other way around.
QUESTION 7
What did the decrease in spending on healthcare correlate with in 1991
CORRECT ANSWER
The advent of of managed care and its downward pressure on both physician and hospital usage
RATIONALE: The decrease in spending on healthcare in 1991 correlated with the advent of managed care, which placed
downward pressure on physician and hospital usage by introducing cost-control measures and alternative payment
structures to reduce unnecessary services. This shift towards managed care led to a decrease in healthcare utilization,
resulting in lower spending, making it a direct cause-and-effect relationship.
QUESTION 8
A tool to analyze the drivers of cost and their increases
CORRECT ANSWER
Cost=Price X Quantity
RATIONALE: The relationship "Cost=Price X Quantity" is correct because it represents the fundamental principle of
accounting that total cost is the product of the price per unit and the number of units purchased or sold. This formula
accurately captures the essence of cost drivers, as changes in price or quantity will directly impact the overall cost,
making it a crucial tool for analyzing and understanding cost increases.
QUESTION 9
What proportion of expenditures goes toward investments, a category that includes research and
structures and equipment
CORRECT ANSWER
5% to 10%
RATIONALE: This proportion is generally accepted due to the accounting principle of matching revenues with the costs
incurred to generate those revenues, which typically involves allocating a significant portion of expenses towards
investments, such as research and development, to future revenue-generating activities. In many industries, especially
those with high research and development expenses, such as technology and pharmaceutical companies, around 5% to
10% of total expenditures are allocated towards investments that will likely have a long-term impact on the company's
revenue streams.
QUESTION 10
What has accounted for the largest share of NHE since 1960
CORRECT ANSWER
Trusted by thousands of students and professionals worldwide Page 3 of 40
, Hospital care at about 33%
RATIONALE: The correct answer, "Hospital care at about 33%", is supported by the fact that over time, healthcare
spending in the United States has shifted from hospital care to other areas such as physician services, pharmaceuticals,
and administrative costs. This shift is largely due to advances in medical technology, changing healthcare practices, and
an increased focus on preventive care and specialty services.
QUESTION 11
What accounted for the second largest share of NHE
CORRECT ANSWER
Professional services i.e physician services, at 26%
RATIONALE: The phrase "Professional services i.e physician services, at 26%" being the correct answer implies that the
second largest share of the National Healthcare Expenditure (NHE) was attributed to the costs associated with medical
professionals, such as physicians, who provide direct patient care. This classification is likely based on the significant
role that physician services play in healthcare delivery, accounting for a substantial portion of total healthcare spending.
QUESTION 12
What accounted for the third largest share of NHE
CORRECT ANSWER
Retail prescription drugs
RATIONALE: Retail prescription drugs are a significant expense in the US healthcare system, accounting for a
substantial portion of the National Health Expenditure (NHE) due to the high cost of medications, particularly for chronic
conditions. The high cost of prescription drugs, combined with the large number of people relying on them, contributes
to their significant share of the NHE.
QUESTION 13
What has increased the share of NHE
CORRECT ANSWER
Residential and personal care services which includes ambulance providers and care delivered in
residential care facilities, as well as nontraditional settings such as community centers and schools
RATIONALE: The share of National Health Expenditures (NHE) has increased due to the growing demand for residential
and personal care services, as aging populations require more long-term care and support in various settings. This
increased demand, particularly in non-traditional settings, drives up healthcare expenditures, thereby contributing to the
overall rise in NHE.
QUESTION 14
The administrative costs in the U.S are
CORRECT ANSWER
Trusted by thousands of students and professionals worldwide Page 4 of 40
