MHA 710/ MHA710 Exam 3 & Exam 4: (Latest
2024/ 2025 Updates STUDY BUNDLE PACKAGE)
Questions and Verified Answers| Grade A| 100%
Correct
What is "economics"? - ANSWERA Map for decision making. Economics analyzes the
allocation of scarce resources.
What are some of the specific challenges faced by managers in healthcare? -
ANSWER1. The central roles of risk and uncertainty
2. The complexities created by insurance
3. The perils produced by information asymmetries
4. The problems posed by not-for-profit organizations
5. The rapid and confusing course of technical and institutional change
What does asymmetric information mean? Can you give an example? -
ANSWERWhen one party in a transaction has less information than the other party.
For example, physicians and other healthcare providers usually understand patients'
medical options better than patients do. Unaware of their choices, patients may
accept recommendations for therapies that are not cost-effective or, recognizing
their vulnerability to physicians' self-serving advice, may resist recommendations
made in their best interest.
What is adverse selection? - ANSWERA situation that occurs when buyers have
better information than sellers. For example, high-risk consumers are willing to pay
more for insurance than low-risk consumers are. (Organizations that have difficulty
distinguishing high-risk from low-risk consumers are unlikely to be profitable.)
What is the problem of scarcity? - ANSWERDemand for a good or service is greater
than the availability
What does it mean to say people are assumed to make choices rationally? -
ANSWERfocuses on individuals' efforts to best realize their goals, given their
resources.
What does it mean to says resources are scarce? - ANSWERAnything useful in
consumption or production that has alternative uses.
What is opportunity cost? - ANSWERPotential loss from a missed opportunity.
Passing up the next best choice.
, What does "marginal" refer to? - ANSWERThe examination of the costs and benefits
through a small change in the production of goods
What does efficiency refer to? - ANSWERNo way to rearrange production of goods in
a way that makes one person more better off without making somebody else worse
off. How well an economy uses scare resources to meet the needs/wants of their
customers
How do positive economic statements differ from normative economic statements? -
ANSWERPositive economics is objective while normative economics is subjective.
Facts/ What is vs What should be
How can economics be applied to the health sector? - ANSWERDescribe, Explain,
Evaluate, Plan
As we progress through the chapters, think about the special characteristics that
apply to the health sector that might limit the applicability of traditional economic
models. - ANSWERSocial determinants of health, few insurance companies that
providers rely on, not a perfectly competitive market
How are healthcare products both outputs and inputs? Can you give an example? -
ANSWERProducts (goods and services are considered products) are commonly both
inputs and outputs. For example, a surgical tool is an input into a surgery and an
output of a surgical tool company. Similarly, the surgery itself can be considered an
output of the surgical team or an input into the health of the patient.
What is a life year? And what is it used for in the context of this chapter? -
ANSWEROne additional year of life. It can equal one added year of life for an
individual or an average of 1/nth of a year of life for n people. An example is
spending $1 million by reducing childhood obesity and saving thousands of lives or
using if for colonoscopies in 81 year old african american men and saving few lives.
What are examples of interventions that have the most impact on life years and
those that have less impact? - ANSWERInterventions with the most include
antismoking, reducing childhood obesity, and multidisciplinary measurement of
heart failure. Interventions with the least include colonoscopies for african american
men who are 81 or 76 and multidisciplinary heart failure measurement with
exercise.
How does healthcare spending per person in the US compare to other countries? -
ANSWERUS spends far more per person on healthcare than any other large
countries.
How does US life expectancy at birth compare to other countries? - ANSWER27 out
of 34 of the OECD countries (bad!)
2024/ 2025 Updates STUDY BUNDLE PACKAGE)
Questions and Verified Answers| Grade A| 100%
Correct
What is "economics"? - ANSWERA Map for decision making. Economics analyzes the
allocation of scarce resources.
What are some of the specific challenges faced by managers in healthcare? -
ANSWER1. The central roles of risk and uncertainty
2. The complexities created by insurance
3. The perils produced by information asymmetries
4. The problems posed by not-for-profit organizations
5. The rapid and confusing course of technical and institutional change
What does asymmetric information mean? Can you give an example? -
ANSWERWhen one party in a transaction has less information than the other party.
For example, physicians and other healthcare providers usually understand patients'
medical options better than patients do. Unaware of their choices, patients may
accept recommendations for therapies that are not cost-effective or, recognizing
their vulnerability to physicians' self-serving advice, may resist recommendations
made in their best interest.
What is adverse selection? - ANSWERA situation that occurs when buyers have
better information than sellers. For example, high-risk consumers are willing to pay
more for insurance than low-risk consumers are. (Organizations that have difficulty
distinguishing high-risk from low-risk consumers are unlikely to be profitable.)
What is the problem of scarcity? - ANSWERDemand for a good or service is greater
than the availability
What does it mean to say people are assumed to make choices rationally? -
ANSWERfocuses on individuals' efforts to best realize their goals, given their
resources.
What does it mean to says resources are scarce? - ANSWERAnything useful in
consumption or production that has alternative uses.
What is opportunity cost? - ANSWERPotential loss from a missed opportunity.
Passing up the next best choice.
, What does "marginal" refer to? - ANSWERThe examination of the costs and benefits
through a small change in the production of goods
What does efficiency refer to? - ANSWERNo way to rearrange production of goods in
a way that makes one person more better off without making somebody else worse
off. How well an economy uses scare resources to meet the needs/wants of their
customers
How do positive economic statements differ from normative economic statements? -
ANSWERPositive economics is objective while normative economics is subjective.
Facts/ What is vs What should be
How can economics be applied to the health sector? - ANSWERDescribe, Explain,
Evaluate, Plan
As we progress through the chapters, think about the special characteristics that
apply to the health sector that might limit the applicability of traditional economic
models. - ANSWERSocial determinants of health, few insurance companies that
providers rely on, not a perfectly competitive market
How are healthcare products both outputs and inputs? Can you give an example? -
ANSWERProducts (goods and services are considered products) are commonly both
inputs and outputs. For example, a surgical tool is an input into a surgery and an
output of a surgical tool company. Similarly, the surgery itself can be considered an
output of the surgical team or an input into the health of the patient.
What is a life year? And what is it used for in the context of this chapter? -
ANSWEROne additional year of life. It can equal one added year of life for an
individual or an average of 1/nth of a year of life for n people. An example is
spending $1 million by reducing childhood obesity and saving thousands of lives or
using if for colonoscopies in 81 year old african american men and saving few lives.
What are examples of interventions that have the most impact on life years and
those that have less impact? - ANSWERInterventions with the most include
antismoking, reducing childhood obesity, and multidisciplinary measurement of
heart failure. Interventions with the least include colonoscopies for african american
men who are 81 or 76 and multidisciplinary heart failure measurement with
exercise.
How does healthcare spending per person in the US compare to other countries? -
ANSWERUS spends far more per person on healthcare than any other large
countries.
How does US life expectancy at birth compare to other countries? - ANSWER27 out
of 34 of the OECD countries (bad!)
