EC248 Final Exam Questions with Answers Perfectly
Solved
1.Health care
a) is the most important determinant of health in OECD countries.
b) is the most expensive determinant of health in OECD countries.
c) spending continues to grow rapidly in most OECD countries.
d) sector is one of the largest sectors in most OECD countries.: sector is
one of the largest sectors in most OECD countries.
2.What statement best describes a health system?
a) Aspects of society that have an important bearing on the health care of
individuals and the population.
b) Aspects of society that have an important bearing on the health of
individ- uals and the population.
c) Aspects of society that have an important bearing on the health care at
the population level.
d) Aspects of society that have an important bearing on health at the popu-
lation level.: b) Aspects of society that have an important bearing on the
health of individuals and the population.
3.Rather than aggregate health expenditures, we often look at real expendi-
tures per capita. This calculation requires us to deflate the aggregate
expen- ditures by:
a) the purchasing power of the currency.
b) the size of the population.
c) the cost of health care.
d) Answers a. and b. are correct.: d) Answers a. and b. are correct.
4.Public sector financing covers about of health care expenditures in
Canada.
a) 100%
b) 70%
c) 50%
d) 30%: b) 70%
5.The following is not a driver of increased health care expenditures:
a) Increases in the quantity of health care
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,b) Increases in the quality of health care
c) Increases in the price of health care
d) Increases in the health care covered under public insurance: d) Increases
in the health care covered under public insurance
6.How does Canada compare to other OECD countries regarding the
propor- tion of health care expenditures covered by public financing.
a) the highest
b) relatively high
c) about the same
d) relatively low: d) relatively low
7.The principles of the Canada Health Act include all EXCEPT
a) Universality
b) Portability
c) Equity
d) Public Administration: c) Equity
8.In Canada, the supply
of physicians has
a) decreased substantially over time resulting in the current shortage.
b) risen steadily over time but has not kept up to population growth.
c) mainly risen over time but practice behaviours have changed.
d) decreased sharply recently leading to the current shortage.: c) mainly
risen over time but practice behaviours have changed.
9.Which statement best describes governance of the Canadian Health
Care System?
a) Provinces/Territories have jurisdiction adhering to the guidelines of
the Canada Health Act
b) The Federal Government controls provincial/territorial actions with
the Canada Health Act
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,c) Federal/Provincial/Territorial governments share jurisdiction over
the Health Care System.
d) The Canada Health Act provides the governance structure for the Health
Care System.: a) Provinces/Territories have jurisdiction adhering to the
guidelines of the Canada Health Act
10.The following is not a measure of health outcome:
a) Number of physicians per capita.
b) Population incidence of malaria.
c) Death rate for children under the age of 5.
d) Estimated men's lifespan.: a) Number of physicians per capita.
11.The creation of an organ transplant lists is an example of:
a) distributional equity
b) vertical equity
c) horizontal equity
d) procedural equity: d) procedural equity
12.Which statement best describes cost-effectiveness efficiency?
a) Cost-effectiveness efficiency takes into account relative input prices.
b) Cost-effectiveness efficiency leads to technical efficiency.
c) A single cost-effective measure can always be identified.
d) Cost-effectiveness efficiency requires allocative efficiency.: a) Cost-
effec- tiveness efficiency takes into account relative input prices.
13.A representation of society's preferences and attitudes towards
the amount and distribution of welfare in a society is called
a) A utility function
b) A social welfare function
c) The Grand Utility Frontier
d) The Edgeworth Box: b) A social welfare function
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, 14.Which statement about opportunity cost is NOT true:
a) Opportunity cost is the financial value of the forgone opportunity
b) Opportunity costs are important because resources are limited.
c) Opportunity cost is a fundamental economic concept.
d) Opportunity cost emphasizes the true social cost of a policy.: a)
Opportunity cost is the financial value of the forgone opportunity
15.Which statement best describes technical efficiency?
a) Enables producers to identify the most up to date production technology.
b) Maximizes outputs for given inputs conditional on a production
technology.
c) Can only be identified when costs of alternative inputs are known.
d) Always leads to cost efficiency and allocative efficiency.: b)
Maximizes outputs for given inputs conditional on a production
technology.
16.Which statement best describes the Pareto Criterion?
a) it identifies the best possible allocation
b) is a strong economic tool used in policy analysis.
c) is successful if winners can compensate losers.
d) if strictly applied would lead to policy paralysis.: d) if strictly applied
would lead to policy paralysis.
17.Which statement best describes allocative efficiency?
a) Allocative efficiency results from technical efficiency.
b) Allocative efficiency results from cost-effective efficiency.
c) Allocative efficiency relates to what society values.
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Solved
1.Health care
a) is the most important determinant of health in OECD countries.
b) is the most expensive determinant of health in OECD countries.
c) spending continues to grow rapidly in most OECD countries.
d) sector is one of the largest sectors in most OECD countries.: sector is
one of the largest sectors in most OECD countries.
2.What statement best describes a health system?
a) Aspects of society that have an important bearing on the health care of
individuals and the population.
b) Aspects of society that have an important bearing on the health of
individ- uals and the population.
c) Aspects of society that have an important bearing on the health care at
the population level.
d) Aspects of society that have an important bearing on health at the popu-
lation level.: b) Aspects of society that have an important bearing on the
health of individuals and the population.
3.Rather than aggregate health expenditures, we often look at real expendi-
tures per capita. This calculation requires us to deflate the aggregate
expen- ditures by:
a) the purchasing power of the currency.
b) the size of the population.
c) the cost of health care.
d) Answers a. and b. are correct.: d) Answers a. and b. are correct.
4.Public sector financing covers about of health care expenditures in
Canada.
a) 100%
b) 70%
c) 50%
d) 30%: b) 70%
5.The following is not a driver of increased health care expenditures:
a) Increases in the quantity of health care
1/
42
,b) Increases in the quality of health care
c) Increases in the price of health care
d) Increases in the health care covered under public insurance: d) Increases
in the health care covered under public insurance
6.How does Canada compare to other OECD countries regarding the
propor- tion of health care expenditures covered by public financing.
a) the highest
b) relatively high
c) about the same
d) relatively low: d) relatively low
7.The principles of the Canada Health Act include all EXCEPT
a) Universality
b) Portability
c) Equity
d) Public Administration: c) Equity
8.In Canada, the supply
of physicians has
a) decreased substantially over time resulting in the current shortage.
b) risen steadily over time but has not kept up to population growth.
c) mainly risen over time but practice behaviours have changed.
d) decreased sharply recently leading to the current shortage.: c) mainly
risen over time but practice behaviours have changed.
9.Which statement best describes governance of the Canadian Health
Care System?
a) Provinces/Territories have jurisdiction adhering to the guidelines of
the Canada Health Act
b) The Federal Government controls provincial/territorial actions with
the Canada Health Act
2/
42
,c) Federal/Provincial/Territorial governments share jurisdiction over
the Health Care System.
d) The Canada Health Act provides the governance structure for the Health
Care System.: a) Provinces/Territories have jurisdiction adhering to the
guidelines of the Canada Health Act
10.The following is not a measure of health outcome:
a) Number of physicians per capita.
b) Population incidence of malaria.
c) Death rate for children under the age of 5.
d) Estimated men's lifespan.: a) Number of physicians per capita.
11.The creation of an organ transplant lists is an example of:
a) distributional equity
b) vertical equity
c) horizontal equity
d) procedural equity: d) procedural equity
12.Which statement best describes cost-effectiveness efficiency?
a) Cost-effectiveness efficiency takes into account relative input prices.
b) Cost-effectiveness efficiency leads to technical efficiency.
c) A single cost-effective measure can always be identified.
d) Cost-effectiveness efficiency requires allocative efficiency.: a) Cost-
effec- tiveness efficiency takes into account relative input prices.
13.A representation of society's preferences and attitudes towards
the amount and distribution of welfare in a society is called
a) A utility function
b) A social welfare function
c) The Grand Utility Frontier
d) The Edgeworth Box: b) A social welfare function
3/
42
, 14.Which statement about opportunity cost is NOT true:
a) Opportunity cost is the financial value of the forgone opportunity
b) Opportunity costs are important because resources are limited.
c) Opportunity cost is a fundamental economic concept.
d) Opportunity cost emphasizes the true social cost of a policy.: a)
Opportunity cost is the financial value of the forgone opportunity
15.Which statement best describes technical efficiency?
a) Enables producers to identify the most up to date production technology.
b) Maximizes outputs for given inputs conditional on a production
technology.
c) Can only be identified when costs of alternative inputs are known.
d) Always leads to cost efficiency and allocative efficiency.: b)
Maximizes outputs for given inputs conditional on a production
technology.
16.Which statement best describes the Pareto Criterion?
a) it identifies the best possible allocation
b) is a strong economic tool used in policy analysis.
c) is successful if winners can compensate losers.
d) if strictly applied would lead to policy paralysis.: d) if strictly applied
would lead to policy paralysis.
17.Which statement best describes allocative efficiency?
a) Allocative efficiency results from technical efficiency.
b) Allocative efficiency results from cost-effective efficiency.
c) Allocative efficiency relates to what society values.
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42
