COMPLETE EXAM 3 MHA 710 – HEALTHCARE
ECONOMICS ACTUAL EXAM WITH COMPLETE
SOLUTIONS RATED A
2. If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage and level of employment be?
a. W1 and E1
b. W2 and E0
c. W0 and E0
d. W0 and E1
e. W0 and E2 - ✔✔✔ ANSWER > a. W1 and E1
A classification system for physicians' services, using a weighting scheme that
reflects the relative value of the various services performed. Developed for
Medicare by a group of Harvard researchers, it considers time, skill, and overhead
cost required for each service. When used in conjunction with a monetary
conversion factor, medical fees are determined. - ✔✔✔ ANSWER > Resource-
based relative value scale (RBRVS)
A compilation of hospital specific charges for all items that the hospital can bill to
patients, insurance plans, and other payers. The list includes all procedures,
services, drugs, and tests that are performed at the facility. - ✔✔✔ ANSWER >
Chargemaster
A congressionally mandated scheme to classify outpatient services into clinically
similar procedures. - ✔✔✔ ANSWER > Ambulatory payment classification (APC)
A financial measure of a firm's ability to generate after-tax profit out of its total
sales. Calculated by dividing after-tax profit by total sales. - ✔✔✔ ANSWER >
Return on sales
A good that is non-rival in distribution and non-exclusive in consumption - ✔✔✔
ANSWER > Public good
,A guarantee that all citizens will have health insurance coverage regardless of
income or health status. Coverage usually requires mandatory participation. -
✔✔✔ ANSWER > Universal coverage
A limit on total spending for a given time period - ✔✔✔ ANSWER > Spending cap
A linear pricing scheme where prices to different customers are computed based
on individual price elasticity of demand. Customers with a high willingness to pay
are charged higher prices. - ✔✔✔ ANSWER > Ramsey pricing
A Medicare policy providing physicians with a guaranteed payment of 80% of the
allowable fee. By accepting, physicians agree to accept the allowable fee as full
payment and forgo the practice of balanced billing. - ✔✔✔ ANSWER > Assignment
A monetary value used to translate relative value units into dollar amounts to
determine a fee schedule - ✔✔✔ ANSWER > Monetary conversion factor
A physician who agrees to accept medicare assignment. - ✔✔✔ ANSWER >
Participating physician
A price ceiling set to limit fees to the minimum of the billed charge, the price
customarily charged by the provider, and the prevailing charge in the geographic
region - ✔✔✔ ANSWER > Usual, customary, and reasonable (UCR) charges
A pricing scheme in which a percentage profit is added to the average cost. -
✔✔✔ ANSWER > Cost-plus pricing
A primary care physician who directs health care delivery and determines
whether patients are allowed access to specialty care - ✔✔✔ ANSWER >
Gatekeeper
A public health agency charged with protecting American consumers by enforcing
federal public health laws. Food, medicine, medical devices, and cosmetics are
under the jurisdiction of this agency. - ✔✔✔ ANSWER > Food and Drug
Administration (FDA)
A situation in a production process where long-run average costs decline as
output expands - ✔✔✔ ANSWER > Economies of scale
, A specific practice required of all participating physicians, such as a policy to refer
patients only to a specific panel of specialists - ✔✔✔ ANSWER > Clinical rule
A supplemental insurance policy sold to Medicare-eligible individuals to pay the
deductibles and coinsurance that are not covered by Medicare. - ✔✔✔ ANSWER >
Medigap insurance
A type I error is:
a. when a beneficial drug is blocked from entering a market.
b. the statistical notion of accepting a false hypothesis.
c. when a harmful drug is allowed into the market.
d. difficult to detect and virtually ignored by the Food and Drug Administration
(FDA). - ✔✔✔ ANSWER > c. when a harmful drug is allowed into the market.
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. - ✔✔✔ ANSWER > d. $200,000
An index that assigns weights to various medical services used to determine the
relative fees assigned to them - ✔✔✔ ANSWER > Relative-value scale (RVS)
An insurance premium based on the actuarial probability that an event will occur.
- ✔✔✔ ANSWER > Actuarially fair premium
Billing a patient for the difference between the physician's usual charge for a
service and the maximum charge allowed by the patient's health plan. - ✔✔✔
ANSWER > Balance billing
By the time a drug enters the clinical trial phase of testing on humans,
a. its approval is virtually assured.
ECONOMICS ACTUAL EXAM WITH COMPLETE
SOLUTIONS RATED A
2. If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage and level of employment be?
a. W1 and E1
b. W2 and E0
c. W0 and E0
d. W0 and E1
e. W0 and E2 - ✔✔✔ ANSWER > a. W1 and E1
A classification system for physicians' services, using a weighting scheme that
reflects the relative value of the various services performed. Developed for
Medicare by a group of Harvard researchers, it considers time, skill, and overhead
cost required for each service. When used in conjunction with a monetary
conversion factor, medical fees are determined. - ✔✔✔ ANSWER > Resource-
based relative value scale (RBRVS)
A compilation of hospital specific charges for all items that the hospital can bill to
patients, insurance plans, and other payers. The list includes all procedures,
services, drugs, and tests that are performed at the facility. - ✔✔✔ ANSWER >
Chargemaster
A congressionally mandated scheme to classify outpatient services into clinically
similar procedures. - ✔✔✔ ANSWER > Ambulatory payment classification (APC)
A financial measure of a firm's ability to generate after-tax profit out of its total
sales. Calculated by dividing after-tax profit by total sales. - ✔✔✔ ANSWER >
Return on sales
A good that is non-rival in distribution and non-exclusive in consumption - ✔✔✔
ANSWER > Public good
,A guarantee that all citizens will have health insurance coverage regardless of
income or health status. Coverage usually requires mandatory participation. -
✔✔✔ ANSWER > Universal coverage
A limit on total spending for a given time period - ✔✔✔ ANSWER > Spending cap
A linear pricing scheme where prices to different customers are computed based
on individual price elasticity of demand. Customers with a high willingness to pay
are charged higher prices. - ✔✔✔ ANSWER > Ramsey pricing
A Medicare policy providing physicians with a guaranteed payment of 80% of the
allowable fee. By accepting, physicians agree to accept the allowable fee as full
payment and forgo the practice of balanced billing. - ✔✔✔ ANSWER > Assignment
A monetary value used to translate relative value units into dollar amounts to
determine a fee schedule - ✔✔✔ ANSWER > Monetary conversion factor
A physician who agrees to accept medicare assignment. - ✔✔✔ ANSWER >
Participating physician
A price ceiling set to limit fees to the minimum of the billed charge, the price
customarily charged by the provider, and the prevailing charge in the geographic
region - ✔✔✔ ANSWER > Usual, customary, and reasonable (UCR) charges
A pricing scheme in which a percentage profit is added to the average cost. -
✔✔✔ ANSWER > Cost-plus pricing
A primary care physician who directs health care delivery and determines
whether patients are allowed access to specialty care - ✔✔✔ ANSWER >
Gatekeeper
A public health agency charged with protecting American consumers by enforcing
federal public health laws. Food, medicine, medical devices, and cosmetics are
under the jurisdiction of this agency. - ✔✔✔ ANSWER > Food and Drug
Administration (FDA)
A situation in a production process where long-run average costs decline as
output expands - ✔✔✔ ANSWER > Economies of scale
, A specific practice required of all participating physicians, such as a policy to refer
patients only to a specific panel of specialists - ✔✔✔ ANSWER > Clinical rule
A supplemental insurance policy sold to Medicare-eligible individuals to pay the
deductibles and coinsurance that are not covered by Medicare. - ✔✔✔ ANSWER >
Medigap insurance
A type I error is:
a. when a beneficial drug is blocked from entering a market.
b. the statistical notion of accepting a false hypothesis.
c. when a harmful drug is allowed into the market.
d. difficult to detect and virtually ignored by the Food and Drug Administration
(FDA). - ✔✔✔ ANSWER > c. when a harmful drug is allowed into the market.
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. - ✔✔✔ ANSWER > d. $200,000
An index that assigns weights to various medical services used to determine the
relative fees assigned to them - ✔✔✔ ANSWER > Relative-value scale (RVS)
An insurance premium based on the actuarial probability that an event will occur.
- ✔✔✔ ANSWER > Actuarially fair premium
Billing a patient for the difference between the physician's usual charge for a
service and the maximum charge allowed by the patient's health plan. - ✔✔✔
ANSWER > Balance billing
By the time a drug enters the clinical trial phase of testing on humans,
a. its approval is virtually assured.
