,Getzen’sgHealthgEconomicsgandgFinancing,gFifthgEdition
TestgBank
File:gc01;gChapterg1gChoices:gMoney,gMedicine,gandgHealth
I.1.AgTrue/False
1) Overgthegpastg100gyears,goutgofgpocketgexpendituresgforghealthgcaregservicesgbygind
ividuals
havegdecreasedgfromgaboutg50%gtoglessgthang10%.gAnswer
:gFalse.
Response:g81%gpersonalgexpendituresging1929;g11%gpersonalgexpendituresging2012.gReferen
ce:g1.2gFlowgofgFunds/SourcesgofgFinancing.
Level:gEasy
2) Thirdgpartygpayersgaccountgforg60%gofgallghealthgcaregexpendituresging2012.gAns
wer:gFalse.
Response:g89%gofgallghealthgcaregexpendituresging2012garegthroughgthird-partygfinancing.
Reference:g1.2gFlowgofgFunds/SourcesgofgFinancing.gLe
vel:gEasy
3) Rankinggeveryonegbygthegamountgspentgongmedicalgcare,g70gpercentgofgthegtotalg(al
l
expendituresgforgallgpeople)gisgaccountedgforgbygthegtopg10gpercentgofgpatients.
Thisgphenomenon
isgcalledgcostgshifting.gAnswer:
gFalse.
Response:gThegstatisticsgaregcorrect;gthegexplanationgisgincorrect.gThegsituationgdescr
ibesgonlygthe
factgthatgmedicalgexpensesgaregincurredgunevenlygacrossgallgofgthegpopulation,gandgdoesg
not
specifygwhogpaysgthatg70gpercentgsharegofgthegnation’sghealthcaregbill.gThegtermgcost
gshifting,
however,gincorporatesgthegcomparisongofgwhogincurredgthegexpensesgversusgwhogpaidgth
egbill.
Reference:g1.1gWhatgIsgEconomics?/FinancinggHealthgCaregANDg1.2gFlowgofgFunds/Source
sgof
Financing.gLeve
l:gMediumgI.1.B
4) NotgonlygisgthegsharegofgthegGDPggoinggtoghealthgcareghigherging2012gthanging1929
,gthegwages
ofghealthgcaregworkersghavegrisengmoregrapidlygthangforgothergtypesgofglabor.gAnswer:
gTrue.
Chapterg1
Copyrightg©g2013gJohngWileyg&gSons,gInc.g1
,Getzen’sgHealthgEconomicsgandgFinancing,gFifthgEdition
TestgBank
Reference:g1.2gFlowgofgFunds/gHealthgCaregProviders:gThegUsesgofgFunds.gLeve
l:gEasy
5) ThegFlowgofgFundsgideagemphasizesgthatgtotalgdollarsgspentgbygindividuals,ggo
vernmentgand
othergthirdgpartygpayersgforghealthgcaregmustgequalgtotalgincomegearnedgbyghealthgcaregpr
oviders,
administratorsgandgotherghealthgcaregworkers.gAnswer:
gTrue.
Reference:g1.2gFlowgofgFunds.gLe
vel:gEasy
I.1.C
I.1.D
6) Theghospitalgopensgagcancergcentergingangadjacentgabandonedgbuilding.gSincegitgwas
gan
abandonedgbuilding,gtheregaregnogopportunitygcostsgofgthisgdecision.gAnswer
:gFalse.
Response:gThegbuilding,gasgwellgasgallgothergresourcesgthatgwereginvestedgintogthegcance
rgcenter,
couldghavegbeengusedgingangalternategway;gtogopengagwomen’sghealthgcenter,gforginstance.g
The
foregonegbenefitsgfromgopeninggagwomen’sghealthgcentergwouldgbegthegopportunitygcostg
ofgthis
decision.
Reference:g1.3gEconomicsgPrinciplesgasgConceptualgTools/OpportunitygCostgLe
vel:gMedium
I.1.E
7) SocioeconomicgdifferencesgingmortalitygfoundgingthegU.S.garegmostglikelygat
tributablegtoglack
ofguniversalghealthginsurancegcoverage.gAn
swer:gFalse.
Response:gSocioeconomicgdifferencesgingmortalitygaregnoticedgingothergOECDgcountries
gasgwell
asgingpoorergcountriesglikegGhanagandgBangladesh.gRefe
rence:g1.4gHealthgDisparities.
Level:gMediumgI
.1.F
I.1.G
I.1.H
8) Whengagdruggcompanygadvertisesgitgwillgprovidegagprescriptiongdruggatgnogchargegtog
certain
individualsgwhogcannotgaffordgagdoctorgprescribedgdrug,gcostsgaregmostglikelygbeinggshif
tedgaway
fromgindividualsgwhogaregpayingghighgpricesgtogthosegwhogaregpayinggnothing.gAnswer:g
False.
Response:gCostsgaregbeinggshiftedgtogindividualsgwhogaregpayingghighgpricesgfromgthosegw
hogare
payinggnothing.
Chapterg1
Copyrightg©g2013gJohngWileyg&gSons,gInc.g2
, Getzen’sgHealthgEconomicsgandgFinancing,gFifthgEdition
TestgBank
Reference:g1.1gWhatgIsgEconomics?/FinancinggHealthgCare.gL
evel:gEasy
I.1.I
I.1.J
I.1.K
9) Aghospitalgsystemgisgrewardedgwithghighergprofitsgingthegshortgtermgwhengitgimp
lements
electronicghealthgrecordsgwhichgincreasegthegtimelinessgofgphysiciangandgpatientgcommuni
cation.
Answer:gFalse.
Response:gWhilegitgisgpossiblegthatgaghospitalgmightgrealizeghighergpatientgrevenuesg
ingtheglong
termgifgitgincreasesgitsgqualitygofgservicegingthegareagofgcommunication,gitgisgunlikelyg
thatgan
investmentgingelectronicghealthgrecordsgwouldgresultgingagshortgtermgreturn.
Further,gthegideagofga
hospitalgrealizinggag“profit”gisgquestionable.gMostghospitalsgareg“notgforgprofit”ginsti
tutions,
whichgbringsgintogquestiongthegmaximizingggoalgofgtheghospital.gThisghighlightsgthegdiff
erence
betweenghospitalsgandgthegneoclassicalgprofit-
maximizinggfirms.gReference:g1.1gWhatgIsgEconomics?/FinancinggHealthgCare.
Level:gMediumgI
.1.L
I.1.M
I.1.N
10) Asgaccessgtoghigh-
qualitygcareghasgbeengsteadilygimprovinggacrossgthegworld,ginequalitiesgin
healthgcangstillgbegfoundgonlygingrelativelygpoorgcountries.gAnswer:g
False.
Reference:g1.4gHealthgDisparitiesgLev
el:gEasy
I.1.OgMultiplegChoice
11) Ingwhichgofgthegfollowinggexamplesgdoesgthegfundamentalgtheoremgofgexchangegnotgapp
ly?
a) Yougpaygyourgoptometristg$500gforgagnewgpairgofgeyeglasses.
b) Yougdonategyourgold,gusedgeyeglassesgtogthegLionsgClub,gagcharitablegor
ganizationgwhich
recyclesgandgdistributesgthegglassesgtogneedygpeople.
c) Yougpaygagfertilitygspecialistg$10,000gtogperformgIngVitrogFertilizationgpr
oceduregwhichgdoes
notgresultgingpregnancy.
d) Yougpaygagfertilitygspecialistg$10,000gtogperformgIngVitrogFertilizationgpr
oceduregwhich
resultsgingpregnancy.
e) Unknowngtogyou,gyourgneighborgisgtappinggintogyourgcablegTVgservicegandgsharinggyou
r
service.
Answer:ge
Chapterg1
Copyrightg©g2013gJohngWileyg&gSons,gInc.
TestgBank
File:gc01;gChapterg1gChoices:gMoney,gMedicine,gandgHealth
I.1.AgTrue/False
1) Overgthegpastg100gyears,goutgofgpocketgexpendituresgforghealthgcaregservicesgbygind
ividuals
havegdecreasedgfromgaboutg50%gtoglessgthang10%.gAnswer
:gFalse.
Response:g81%gpersonalgexpendituresging1929;g11%gpersonalgexpendituresging2012.gReferen
ce:g1.2gFlowgofgFunds/SourcesgofgFinancing.
Level:gEasy
2) Thirdgpartygpayersgaccountgforg60%gofgallghealthgcaregexpendituresging2012.gAns
wer:gFalse.
Response:g89%gofgallghealthgcaregexpendituresging2012garegthroughgthird-partygfinancing.
Reference:g1.2gFlowgofgFunds/SourcesgofgFinancing.gLe
vel:gEasy
3) Rankinggeveryonegbygthegamountgspentgongmedicalgcare,g70gpercentgofgthegtotalg(al
l
expendituresgforgallgpeople)gisgaccountedgforgbygthegtopg10gpercentgofgpatients.
Thisgphenomenon
isgcalledgcostgshifting.gAnswer:
gFalse.
Response:gThegstatisticsgaregcorrect;gthegexplanationgisgincorrect.gThegsituationgdescr
ibesgonlygthe
factgthatgmedicalgexpensesgaregincurredgunevenlygacrossgallgofgthegpopulation,gandgdoesg
not
specifygwhogpaysgthatg70gpercentgsharegofgthegnation’sghealthcaregbill.gThegtermgcost
gshifting,
however,gincorporatesgthegcomparisongofgwhogincurredgthegexpensesgversusgwhogpaidgth
egbill.
Reference:g1.1gWhatgIsgEconomics?/FinancinggHealthgCaregANDg1.2gFlowgofgFunds/Source
sgof
Financing.gLeve
l:gMediumgI.1.B
4) NotgonlygisgthegsharegofgthegGDPggoinggtoghealthgcareghigherging2012gthanging1929
,gthegwages
ofghealthgcaregworkersghavegrisengmoregrapidlygthangforgothergtypesgofglabor.gAnswer:
gTrue.
Chapterg1
Copyrightg©g2013gJohngWileyg&gSons,gInc.g1
,Getzen’sgHealthgEconomicsgandgFinancing,gFifthgEdition
TestgBank
Reference:g1.2gFlowgofgFunds/gHealthgCaregProviders:gThegUsesgofgFunds.gLeve
l:gEasy
5) ThegFlowgofgFundsgideagemphasizesgthatgtotalgdollarsgspentgbygindividuals,ggo
vernmentgand
othergthirdgpartygpayersgforghealthgcaregmustgequalgtotalgincomegearnedgbyghealthgcaregpr
oviders,
administratorsgandgotherghealthgcaregworkers.gAnswer:
gTrue.
Reference:g1.2gFlowgofgFunds.gLe
vel:gEasy
I.1.C
I.1.D
6) Theghospitalgopensgagcancergcentergingangadjacentgabandonedgbuilding.gSincegitgwas
gan
abandonedgbuilding,gtheregaregnogopportunitygcostsgofgthisgdecision.gAnswer
:gFalse.
Response:gThegbuilding,gasgwellgasgallgothergresourcesgthatgwereginvestedgintogthegcance
rgcenter,
couldghavegbeengusedgingangalternategway;gtogopengagwomen’sghealthgcenter,gforginstance.g
The
foregonegbenefitsgfromgopeninggagwomen’sghealthgcentergwouldgbegthegopportunitygcostg
ofgthis
decision.
Reference:g1.3gEconomicsgPrinciplesgasgConceptualgTools/OpportunitygCostgLe
vel:gMedium
I.1.E
7) SocioeconomicgdifferencesgingmortalitygfoundgingthegU.S.garegmostglikelygat
tributablegtoglack
ofguniversalghealthginsurancegcoverage.gAn
swer:gFalse.
Response:gSocioeconomicgdifferencesgingmortalitygaregnoticedgingothergOECDgcountries
gasgwell
asgingpoorergcountriesglikegGhanagandgBangladesh.gRefe
rence:g1.4gHealthgDisparities.
Level:gMediumgI
.1.F
I.1.G
I.1.H
8) Whengagdruggcompanygadvertisesgitgwillgprovidegagprescriptiongdruggatgnogchargegtog
certain
individualsgwhogcannotgaffordgagdoctorgprescribedgdrug,gcostsgaregmostglikelygbeinggshif
tedgaway
fromgindividualsgwhogaregpayingghighgpricesgtogthosegwhogaregpayinggnothing.gAnswer:g
False.
Response:gCostsgaregbeinggshiftedgtogindividualsgwhogaregpayingghighgpricesgfromgthosegw
hogare
payinggnothing.
Chapterg1
Copyrightg©g2013gJohngWileyg&gSons,gInc.g2
, Getzen’sgHealthgEconomicsgandgFinancing,gFifthgEdition
TestgBank
Reference:g1.1gWhatgIsgEconomics?/FinancinggHealthgCare.gL
evel:gEasy
I.1.I
I.1.J
I.1.K
9) Aghospitalgsystemgisgrewardedgwithghighergprofitsgingthegshortgtermgwhengitgimp
lements
electronicghealthgrecordsgwhichgincreasegthegtimelinessgofgphysiciangandgpatientgcommuni
cation.
Answer:gFalse.
Response:gWhilegitgisgpossiblegthatgaghospitalgmightgrealizeghighergpatientgrevenuesg
ingtheglong
termgifgitgincreasesgitsgqualitygofgservicegingthegareagofgcommunication,gitgisgunlikelyg
thatgan
investmentgingelectronicghealthgrecordsgwouldgresultgingagshortgtermgreturn.
Further,gthegideagofga
hospitalgrealizinggag“profit”gisgquestionable.gMostghospitalsgareg“notgforgprofit”ginsti
tutions,
whichgbringsgintogquestiongthegmaximizingggoalgofgtheghospital.gThisghighlightsgthegdiff
erence
betweenghospitalsgandgthegneoclassicalgprofit-
maximizinggfirms.gReference:g1.1gWhatgIsgEconomics?/FinancinggHealthgCare.
Level:gMediumgI
.1.L
I.1.M
I.1.N
10) Asgaccessgtoghigh-
qualitygcareghasgbeengsteadilygimprovinggacrossgthegworld,ginequalitiesgin
healthgcangstillgbegfoundgonlygingrelativelygpoorgcountries.gAnswer:g
False.
Reference:g1.4gHealthgDisparitiesgLev
el:gEasy
I.1.OgMultiplegChoice
11) Ingwhichgofgthegfollowinggexamplesgdoesgthegfundamentalgtheoremgofgexchangegnotgapp
ly?
a) Yougpaygyourgoptometristg$500gforgagnewgpairgofgeyeglasses.
b) Yougdonategyourgold,gusedgeyeglassesgtogthegLionsgClub,gagcharitablegor
ganizationgwhich
recyclesgandgdistributesgthegglassesgtogneedygpeople.
c) Yougpaygagfertilitygspecialistg$10,000gtogperformgIngVitrogFertilizationgpr
oceduregwhichgdoes
notgresultgingpregnancy.
d) Yougpaygagfertilitygspecialistg$10,000gtogperformgIngVitrogFertilizationgpr
oceduregwhich
resultsgingpregnancy.
e) Unknowngtogyou,gyourgneighborgisgtappinggintogyourgcablegTVgservicegandgsharinggyou
r
service.
Answer:ge
Chapterg1
Copyrightg©g2013gJohngWileyg&gSons,gInc.
