MHA 710 - Healthcare Economics - Exam 2 Solution Manual Fully Solved Latest Update 2025 Graded
A+
Suppose your assignment is to use the standard time trade-off approach to measure quality of life. You
are given the following information. An individual is faced with leaving the remaining 10 years of their
life suffering from severe osteoporosis. The individual reveals that they would be willing to give up four
of those years to live hte remaining six in perfect health. What is the utility of one year in a chronic
health state relative to perfect health?
A. 0.6
B. 40
C. 4
D. 6
E. 0.4 - Answers A. 0.6
Which of the following would likely lead to the greatest improvement in the health status of the
population in the United States?
A. More spending on public health
B. Higher per capita incomes
C. More rural hospitals
D. Improved lifestyles changes
E. More medical care spending overall - Answers D. Improved lifestyles changes
There are substantial differences in medical care use by demographic characteristics such as age, sex,
and marital status. Which of the following statements is true?
A. Infant girls are healthier than infant boys are and consume fewer medical resources
B. Average hospital stays are longer for women than men
C. Single individuals regardless of age are hospitalized less than married people are
D. People aged 80 or more spend about the same amount on medical care as 60 year olds do
E. Adult women spend more money on medical care than men do - Answers E. Adult women spend
more money on medical care than men do
The primary tasks required to conduct a successful cost effectiveness study are all of the following
except:
,A. Identifying the overall cost of a health condition on society
B. Establishing the relevant alternative(s) for comparison
C. Ranking the alternatives in terms of overall costs
D. Identifying and measuring all relevant costs
E. Adequately measuring the effectiveness of the procedures evaluated - Answers A. Identifying the
overall cost of a health condition on society
Suppose you must rely exclusively on cost-effectiveness analysis (CEA) to determine whether a category
of people receives an expensive, potentially life-saving, intervention. Which of the following
considerations must you keep in mind when making your decision?
A. CEA studies are subjective and rely on the judgment of clinicians and researchers
B. CEA studies take a long time to conduct and are expensive to evaluate
C. CEA determines the efficient threshold above which treatments are unnecessarily expensive
D. CEA ignores the possibility that certain unidentified individuals in a group may have a greater than
normal positive response to the treatment
E. CEA studies are considered the gold standard as far as evaluation studies are concerned - Answers D.
CEA ignores the possibility that certain unidentified individuals in a group may have a greater than
normal positive response to the treatment
Under which of the following circumstances is the principal-agent relationship likely to be most
problematic?
A. Between physicians and lawyers
B. Between general practitioners and patients
C. Between hospitals and nurses
D. Between dentists and physicians
E. Between surgeons and patients - Answers E. Between surgeons and patients
The direct costs in an economic evaluation include all of the following except:
A. The cost of home remodeling to accommodate a physical handicap
B. Reduced productivity at work
C. Hospitalization
, D. Transportation to and from the physician's office
E. Medical devices - Answers B. Reduced productivity at work
When area income increases by 20 percent, what occurs?
A. Quantity demanded does not change
B. Quantity demanded falls by 10%
C. Quantity demanded rises by 7.5%
D. Quantity demanded rises by 10%
E. Quantity demanded falls by 7.5% - Answers D. Quantity demanded rises by 10%
Factors affecting the level of medical care demand include all of the following except:
A. Economic standing
B. Demographic characteristics
C. Health status
D. Physician factors
E. Price of medical care - Answers E. Price of medical care
Which of the following is least responsible for the reduction in mortality rates in Europe and North
America?
A. More effective medical interventions
B. Reduced exposure to diseases
C. Clean water and waste disposal
D. Improved sanitary conditions
E. Better nutrition and housing - Answers A. More effective medical interventions
When measuring the effectiveness of a treatment, surrogate measures reflect clinical efficacy and
include:
A. Hip fractures
B. Death
C. Scores on standard evaluative exams such as EuroQol or SF-36
A+
Suppose your assignment is to use the standard time trade-off approach to measure quality of life. You
are given the following information. An individual is faced with leaving the remaining 10 years of their
life suffering from severe osteoporosis. The individual reveals that they would be willing to give up four
of those years to live hte remaining six in perfect health. What is the utility of one year in a chronic
health state relative to perfect health?
A. 0.6
B. 40
C. 4
D. 6
E. 0.4 - Answers A. 0.6
Which of the following would likely lead to the greatest improvement in the health status of the
population in the United States?
A. More spending on public health
B. Higher per capita incomes
C. More rural hospitals
D. Improved lifestyles changes
E. More medical care spending overall - Answers D. Improved lifestyles changes
There are substantial differences in medical care use by demographic characteristics such as age, sex,
and marital status. Which of the following statements is true?
A. Infant girls are healthier than infant boys are and consume fewer medical resources
B. Average hospital stays are longer for women than men
C. Single individuals regardless of age are hospitalized less than married people are
D. People aged 80 or more spend about the same amount on medical care as 60 year olds do
E. Adult women spend more money on medical care than men do - Answers E. Adult women spend
more money on medical care than men do
The primary tasks required to conduct a successful cost effectiveness study are all of the following
except:
,A. Identifying the overall cost of a health condition on society
B. Establishing the relevant alternative(s) for comparison
C. Ranking the alternatives in terms of overall costs
D. Identifying and measuring all relevant costs
E. Adequately measuring the effectiveness of the procedures evaluated - Answers A. Identifying the
overall cost of a health condition on society
Suppose you must rely exclusively on cost-effectiveness analysis (CEA) to determine whether a category
of people receives an expensive, potentially life-saving, intervention. Which of the following
considerations must you keep in mind when making your decision?
A. CEA studies are subjective and rely on the judgment of clinicians and researchers
B. CEA studies take a long time to conduct and are expensive to evaluate
C. CEA determines the efficient threshold above which treatments are unnecessarily expensive
D. CEA ignores the possibility that certain unidentified individuals in a group may have a greater than
normal positive response to the treatment
E. CEA studies are considered the gold standard as far as evaluation studies are concerned - Answers D.
CEA ignores the possibility that certain unidentified individuals in a group may have a greater than
normal positive response to the treatment
Under which of the following circumstances is the principal-agent relationship likely to be most
problematic?
A. Between physicians and lawyers
B. Between general practitioners and patients
C. Between hospitals and nurses
D. Between dentists and physicians
E. Between surgeons and patients - Answers E. Between surgeons and patients
The direct costs in an economic evaluation include all of the following except:
A. The cost of home remodeling to accommodate a physical handicap
B. Reduced productivity at work
C. Hospitalization
, D. Transportation to and from the physician's office
E. Medical devices - Answers B. Reduced productivity at work
When area income increases by 20 percent, what occurs?
A. Quantity demanded does not change
B. Quantity demanded falls by 10%
C. Quantity demanded rises by 7.5%
D. Quantity demanded rises by 10%
E. Quantity demanded falls by 7.5% - Answers D. Quantity demanded rises by 10%
Factors affecting the level of medical care demand include all of the following except:
A. Economic standing
B. Demographic characteristics
C. Health status
D. Physician factors
E. Price of medical care - Answers E. Price of medical care
Which of the following is least responsible for the reduction in mortality rates in Europe and North
America?
A. More effective medical interventions
B. Reduced exposure to diseases
C. Clean water and waste disposal
D. Improved sanitary conditions
E. Better nutrition and housing - Answers A. More effective medical interventions
When measuring the effectiveness of a treatment, surrogate measures reflect clinical efficacy and
include:
A. Hip fractures
B. Death
C. Scores on standard evaluative exams such as EuroQol or SF-36
