Health Economic Policy &
Payment Models
Final Exam Guide
Q&S
2024
,1. Multiple Choice: Which of the following is a key principle of health
economics?
A) Cost-effectiveness
B) Demand management
C) Resource allocation
D) All of the above
Correct Answer: D) All of the above
Rationale: Health economics is concerned with how scarce resources
are allocated among alternative uses for the care of sickness and the
promotion, maintenance, and improvement of health. This includes the
study of how health care resources are allocated, including the
assessment of cost-effectiveness, demand management, and resource
allocation.
2. True/False: The Beveridge Model relies on private insurance for
funding healthcare.
Correct Answer: False
Rationale: The Beveridge Model, named after social reformer William
Beveridge, is funded by general taxation and provides healthcare to all
citizens regardless of their ability to pay.
3. Fill-in-the-Blank: The __________ model is characterized by health
insurance provided directly by the government through tax payments.
, Correct Answer: Single-payer
Rationale: In the single-payer model, healthcare is funded by a single
public authority, not through private insurers.
4. Multiple Choice: What does QALY stand for in health economics?
A) Quality-Assured Life Year
B) Quality-Adjusted Life Year
C) Quantitative Analysis of Life Years
D) Quick Access to Life Years
Correct Answer: B) Quality-Adjusted Life Year
Rationale: QALY stands for Quality-Adjusted Life Year and is a measure
used to evaluate the value for money of medical interventions. It takes
into account both the quantity and quality of life generated by healthcare
interventions.
5. True/False: Capitation payments incentivize providers to offer more
treatments and services to patients.
Correct Answer: False
Rationale: Capitation payments provide a set fee per patient regardless
of how many services are provided, which can incentivize providers to
offer fewer, more necessary treatments to be cost-effective.
6. Fill-in-the-Blank: In health economics, the term __________ refers to
the study of individual behaviors and decision-making processes within
the healthcare system.
Payment Models
Final Exam Guide
Q&S
2024
,1. Multiple Choice: Which of the following is a key principle of health
economics?
A) Cost-effectiveness
B) Demand management
C) Resource allocation
D) All of the above
Correct Answer: D) All of the above
Rationale: Health economics is concerned with how scarce resources
are allocated among alternative uses for the care of sickness and the
promotion, maintenance, and improvement of health. This includes the
study of how health care resources are allocated, including the
assessment of cost-effectiveness, demand management, and resource
allocation.
2. True/False: The Beveridge Model relies on private insurance for
funding healthcare.
Correct Answer: False
Rationale: The Beveridge Model, named after social reformer William
Beveridge, is funded by general taxation and provides healthcare to all
citizens regardless of their ability to pay.
3. Fill-in-the-Blank: The __________ model is characterized by health
insurance provided directly by the government through tax payments.
, Correct Answer: Single-payer
Rationale: In the single-payer model, healthcare is funded by a single
public authority, not through private insurers.
4. Multiple Choice: What does QALY stand for in health economics?
A) Quality-Assured Life Year
B) Quality-Adjusted Life Year
C) Quantitative Analysis of Life Years
D) Quick Access to Life Years
Correct Answer: B) Quality-Adjusted Life Year
Rationale: QALY stands for Quality-Adjusted Life Year and is a measure
used to evaluate the value for money of medical interventions. It takes
into account both the quantity and quality of life generated by healthcare
interventions.
5. True/False: Capitation payments incentivize providers to offer more
treatments and services to patients.
Correct Answer: False
Rationale: Capitation payments provide a set fee per patient regardless
of how many services are provided, which can incentivize providers to
offer fewer, more necessary treatments to be cost-effective.
6. Fill-in-the-Blank: In health economics, the term __________ refers to
the study of individual behaviors and decision-making processes within
the healthcare system.
