,Getzen’shHealthhEconomicshandhFinancing,hFifthhEdition
TesthBank
File:hc01;hChapterh1hChoices:hMoney,hMedicine,handhHealth
I.1.AhTrue/False
1) Overhthehpasth100hyears,houthofhpockethexpenditureshforhhealthhcarehserviceshbyhindivid
uals
havehdecreasedhfromhabouth50%htohlesshthanh10%.hAnsw
er:hFalse.
Response:h81%hpersonalhexpenditureshinh1929;h11%hpersonalhexpenditureshinh2012.hReference:h
1.2hFlowhofhFunds/SourceshofhFinancing.
Level:hEasy
2) Thirdhpartyhpayershaccounthforh60%hofhallhhealthhcarehexpenditureshinh2012.hAnswer
:hFalse.
Response:h89%hofhallhhealthhcarehexpenditureshinh2012harehthroughhthird-partyhfinancing.
Reference:h1.2hFlowhofhFunds/SourceshofhFinancing.hLev
el:hEasy
3) Rankingheveryonehbyhthehamounthspenthonhmedicalhcare,h70hpercenthofhthehtotalh(all
expenditureshforhallhpeople)hishaccountedhforhbyhthehtoph10hpercenthofhpatients.
Thishphenomenon
ishcalledhcosthshifting.hA
nswer:hFalse.
Response:hThehstatisticsharehcorrect;hthehexplanationhishincorrect.hThehsituationhdescribe
shonlyhthe
facththathmedicalhexpensesharehincurredhunevenlyhacrosshallhofhthehpopulation,handhdoeshnot
specifyhwhohpayshthath70hpercenthsharehofhthehnation’shhealthcarehbill.hThehtermhcosthshi
fting,
however,hincorporateshthehcomparisonhofhwhohincurredhthehexpenseshversushwhohpaidhthehbi
ll.
Reference:h1.1hWhathIshEconomics?/FinancinghHealthhCarehANDh1.2hFlowhofhFunds/Sourceshof
Financing.hLe
vel:hMediumhI.
1.B
4) NothonlyhishthehsharehofhthehGDPhgoinghtohhealthhcarehhigherhinh2012hthanhinh1929,hthe
hwages
ofhhealthhcarehworkershhavehrisenhmorehrapidlyhthanhforhotherhtypeshofhlabor.hAnswer:hTru
e.
Chapterh1
Copyrighth©h2013hJohnhWileyh&hSons,hInc.h1
,Getzen’shHealthhEconomicshandhFinancing,hFifthhEdition
TesthBank
Reference:h1.2hFlowhofhFunds/hHealthhCarehProviders:hThehUseshofhFunds.hLevel:h
Easy
5) ThehFlowhofhFundshideahemphasizeshthathtotalhdollarshspenthbyhindividuals,hgovern
menthand
otherhthirdhpartyhpayershforhhealthhcarehmusthequalhtotalhincomehearnedhbyhhealthhcarehprovi
ders,
administratorshandhotherhhealthhcarehworkers.hAn
swer:hTrue.
Reference:h1.2hFlowhofhFunds.hLe
vel:hEasy
I.1.C
I.1.D
6) Thehhospitalhopenshahcancerhcenterhinhanhadjacenthabandonedhbuilding.hSincehithwashan
abandonedhbuilding,hthereharehnohopportunityhcostshofhthishdecision.hAnswer:hF
alse.
Response:hThehbuilding,hashwellhashallhotherhresourceshthathwerehinvestedhintohthehcancerhce
nter,
couldhhavehbeenhusedhinhanhalternatehway;htohopenhahwomen’shhealthhcenter,hforhinstance.hThe
foregonehbenefitshfromhopeninghahwomen’shhealthhcenterhwouldhbehthehopportunityhcosthofht
his
decision.
Reference:h1.3hEconomicshPrincipleshashConceptualhTools/OpportunityhCosthLeve
l:hMedium
I.1.E
7) SocioeconomichdifferenceshinhmortalityhfoundhinhthehU.S.harehmosthlikelyhattri
butablehtohlack
ofhuniversalhhealthhinsurancehcoverage.hAn
swer:hFalse.
Response:hSocioeconomichdifferenceshinhmortalityharehnoticedhinhotherhOECDhcountrieshash
well
ashinhpoorerhcountrieshlikehGhanahandhBangladesh.hRef
erence:h1.4hHealthhDisparities.
Level:hMediumh
I.1.F
I.1.G
I.1.H
8) Whenhahdrughcompanyhadvertiseshithwillhprovidehahprescriptionhdrughathnohchargehtohcert
ain
individualshwhohcannothaffordhahdoctorhprescribedhdrug,hcostsharehmosthlikelyhbeinghshiftedh
away
fromhindividualshwhoharehpayinghhighhpriceshtohthosehwhoharehpayinghnothing.hAnswer:hFals
e.
Response:hCostsharehbeinghshiftedhtohindividualshwhoharehpayinghhighhpriceshfromhthosehwhoha
re
payinghnothing.
Chapterh1
Copyrighth©h2013hJohnhWileyh&hSons,hInc.h2
, Getzen’shHealthhEconomicshandhFinancing,hFifthhEdition
TesthBank
Reference:h1.1hWhathIshEconomics?/FinancinghHealthhCare.hLev
el:hEasy
I.1.I
I.1.J
I.1.K
9) Ahhospitalhsystemhishrewardedhwithhhigherhprofitshinhthehshorthtermhwhenhithimpleme
nts
electronichhealthhrecordshwhichhincreasehthehtimelinesshofhphysicianhandhpatienthcommunica
tion.
Answer:hFalse.
Response:hWhilehithishpossiblehthathahhospitalhmighthrealizehhigherhpatienthrevenueshinht
hehlong
termhifhithincreaseshitshqualityhofhservicehinhthehareahofhcommunication,hithishunlikelyhthat
han
investmenthinhelectronichhealthhrecordshwouldhresulthinhahshorthtermhreturn.
Further,hthehideahofha
hospitalhrealizinghah“profit”hishquestionable.hMosthhospitalshareh“nothforhprofit”hinstitut
ions,
whichhbringshintohquestionhthehmaximizinghgoalhofhthehhospital.hThishhighlightshthehdiffere
nce
betweenhhospitalshandhthehneoclassicalhprofit-
maximizinghfirms.hReference:h1.1hWhathIshEconomics?/FinancinghHealthhCare.
Level:hMediumh
I.1.L
I.1.M
I.1.N
10) Ashaccesshtohhigh-
qualityhcarehhashbeenhsteadilyhimprovinghacrosshthehworld,hinequalitieshin
healthhcanhstillhbehfoundhonlyhinhrelativelyhpoorhcountries.hAnswer:hFal
se.
Reference:h1.4hHealthhDisparitieshL
evel:hEasy
I.1.O MultiplehChoice
11) Inhwhichhofhthehfollowinghexampleshdoeshthehfundamentalhtheoremhofhexchangehnothapply?
a) Youhpayhyourhoptometristh$500hforhahnewhpairhofheyeglasses.
b) Youhdonatehyourhold,husedheyeglasseshtohthehLionshClub,hahcharitablehorgan
izationhwhich
recycleshandhdistributeshthehglasseshtohneedyhpeople.
c) Youhpayhahfertilityhspecialisth$10,000htohperformhInhVitrohFertilizationhproce
durehwhichhdoes
nothresulthinhpregnancy.
d) Youhpayhahfertilityhspecialisth$10,000htohperformhInhVitrohFertilizationhproce
durehwhich
resultshinhpregnancy.
e) Unknownhtohyou,hyourhneighborhishtappinghintohyourhcablehTVhservicehandhsharinghyour
service.
Answer:he
Chapterh1
Copyrighth©h2013hJohnhWileyh&hSons,hInc.
TesthBank
File:hc01;hChapterh1hChoices:hMoney,hMedicine,handhHealth
I.1.AhTrue/False
1) Overhthehpasth100hyears,houthofhpockethexpenditureshforhhealthhcarehserviceshbyhindivid
uals
havehdecreasedhfromhabouth50%htohlesshthanh10%.hAnsw
er:hFalse.
Response:h81%hpersonalhexpenditureshinh1929;h11%hpersonalhexpenditureshinh2012.hReference:h
1.2hFlowhofhFunds/SourceshofhFinancing.
Level:hEasy
2) Thirdhpartyhpayershaccounthforh60%hofhallhhealthhcarehexpenditureshinh2012.hAnswer
:hFalse.
Response:h89%hofhallhhealthhcarehexpenditureshinh2012harehthroughhthird-partyhfinancing.
Reference:h1.2hFlowhofhFunds/SourceshofhFinancing.hLev
el:hEasy
3) Rankingheveryonehbyhthehamounthspenthonhmedicalhcare,h70hpercenthofhthehtotalh(all
expenditureshforhallhpeople)hishaccountedhforhbyhthehtoph10hpercenthofhpatients.
Thishphenomenon
ishcalledhcosthshifting.hA
nswer:hFalse.
Response:hThehstatisticsharehcorrect;hthehexplanationhishincorrect.hThehsituationhdescribe
shonlyhthe
facththathmedicalhexpensesharehincurredhunevenlyhacrosshallhofhthehpopulation,handhdoeshnot
specifyhwhohpayshthath70hpercenthsharehofhthehnation’shhealthcarehbill.hThehtermhcosthshi
fting,
however,hincorporateshthehcomparisonhofhwhohincurredhthehexpenseshversushwhohpaidhthehbi
ll.
Reference:h1.1hWhathIshEconomics?/FinancinghHealthhCarehANDh1.2hFlowhofhFunds/Sourceshof
Financing.hLe
vel:hMediumhI.
1.B
4) NothonlyhishthehsharehofhthehGDPhgoinghtohhealthhcarehhigherhinh2012hthanhinh1929,hthe
hwages
ofhhealthhcarehworkershhavehrisenhmorehrapidlyhthanhforhotherhtypeshofhlabor.hAnswer:hTru
e.
Chapterh1
Copyrighth©h2013hJohnhWileyh&hSons,hInc.h1
,Getzen’shHealthhEconomicshandhFinancing,hFifthhEdition
TesthBank
Reference:h1.2hFlowhofhFunds/hHealthhCarehProviders:hThehUseshofhFunds.hLevel:h
Easy
5) ThehFlowhofhFundshideahemphasizeshthathtotalhdollarshspenthbyhindividuals,hgovern
menthand
otherhthirdhpartyhpayershforhhealthhcarehmusthequalhtotalhincomehearnedhbyhhealthhcarehprovi
ders,
administratorshandhotherhhealthhcarehworkers.hAn
swer:hTrue.
Reference:h1.2hFlowhofhFunds.hLe
vel:hEasy
I.1.C
I.1.D
6) Thehhospitalhopenshahcancerhcenterhinhanhadjacenthabandonedhbuilding.hSincehithwashan
abandonedhbuilding,hthereharehnohopportunityhcostshofhthishdecision.hAnswer:hF
alse.
Response:hThehbuilding,hashwellhashallhotherhresourceshthathwerehinvestedhintohthehcancerhce
nter,
couldhhavehbeenhusedhinhanhalternatehway;htohopenhahwomen’shhealthhcenter,hforhinstance.hThe
foregonehbenefitshfromhopeninghahwomen’shhealthhcenterhwouldhbehthehopportunityhcosthofht
his
decision.
Reference:h1.3hEconomicshPrincipleshashConceptualhTools/OpportunityhCosthLeve
l:hMedium
I.1.E
7) SocioeconomichdifferenceshinhmortalityhfoundhinhthehU.S.harehmosthlikelyhattri
butablehtohlack
ofhuniversalhhealthhinsurancehcoverage.hAn
swer:hFalse.
Response:hSocioeconomichdifferenceshinhmortalityharehnoticedhinhotherhOECDhcountrieshash
well
ashinhpoorerhcountrieshlikehGhanahandhBangladesh.hRef
erence:h1.4hHealthhDisparities.
Level:hMediumh
I.1.F
I.1.G
I.1.H
8) Whenhahdrughcompanyhadvertiseshithwillhprovidehahprescriptionhdrughathnohchargehtohcert
ain
individualshwhohcannothaffordhahdoctorhprescribedhdrug,hcostsharehmosthlikelyhbeinghshiftedh
away
fromhindividualshwhoharehpayinghhighhpriceshtohthosehwhoharehpayinghnothing.hAnswer:hFals
e.
Response:hCostsharehbeinghshiftedhtohindividualshwhoharehpayinghhighhpriceshfromhthosehwhoha
re
payinghnothing.
Chapterh1
Copyrighth©h2013hJohnhWileyh&hSons,hInc.h2
, Getzen’shHealthhEconomicshandhFinancing,hFifthhEdition
TesthBank
Reference:h1.1hWhathIshEconomics?/FinancinghHealthhCare.hLev
el:hEasy
I.1.I
I.1.J
I.1.K
9) Ahhospitalhsystemhishrewardedhwithhhigherhprofitshinhthehshorthtermhwhenhithimpleme
nts
electronichhealthhrecordshwhichhincreasehthehtimelinesshofhphysicianhandhpatienthcommunica
tion.
Answer:hFalse.
Response:hWhilehithishpossiblehthathahhospitalhmighthrealizehhigherhpatienthrevenueshinht
hehlong
termhifhithincreaseshitshqualityhofhservicehinhthehareahofhcommunication,hithishunlikelyhthat
han
investmenthinhelectronichhealthhrecordshwouldhresulthinhahshorthtermhreturn.
Further,hthehideahofha
hospitalhrealizinghah“profit”hishquestionable.hMosthhospitalshareh“nothforhprofit”hinstitut
ions,
whichhbringshintohquestionhthehmaximizinghgoalhofhthehhospital.hThishhighlightshthehdiffere
nce
betweenhhospitalshandhthehneoclassicalhprofit-
maximizinghfirms.hReference:h1.1hWhathIshEconomics?/FinancinghHealthhCare.
Level:hMediumh
I.1.L
I.1.M
I.1.N
10) Ashaccesshtohhigh-
qualityhcarehhashbeenhsteadilyhimprovinghacrosshthehworld,hinequalitieshin
healthhcanhstillhbehfoundhonlyhinhrelativelyhpoorhcountries.hAnswer:hFal
se.
Reference:h1.4hHealthhDisparitieshL
evel:hEasy
I.1.O MultiplehChoice
11) Inhwhichhofhthehfollowinghexampleshdoeshthehfundamentalhtheoremhofhexchangehnothapply?
a) Youhpayhyourhoptometristh$500hforhahnewhpairhofheyeglasses.
b) Youhdonatehyourhold,husedheyeglasseshtohthehLionshClub,hahcharitablehorgan
izationhwhich
recycleshandhdistributeshthehglasseshtohneedyhpeople.
c) Youhpayhahfertilityhspecialisth$10,000htohperformhInhVitrohFertilizationhproce
durehwhichhdoes
nothresulthinhpregnancy.
d) Youhpayhahfertilityhspecialisth$10,000htohperformhInhVitrohFertilizationhproce
durehwhich
resultshinhpregnancy.
e) Unknownhtohyou,hyourhneighborhishtappinghintohyourhcablehTVhservicehandhsharinghyour
service.
Answer:he
Chapterh1
Copyrighth©h2013hJohnhWileyh&hSons,hInc.
