7/22/25, 3:35 PM
EC248 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS 100% GUARANTEED SUCCESS
LATEST RELEASE 2025/2026
horizontal equity the principle that taxpayers with equal income should
pay equal tax.
vertical equity method of collecting income tax in which the
taxes paid increase with the amount of earned
income
procedural equity focuses on ensuring that programs, policies,
and processes are fair and inclusive for all
distributional efficiency a measure of how well an organization's
distribution processes are executed to achieve
optimal results.
Pareto Criterion A decision or change is good if it makes at least
one person better off without making anyone
else worse off
What are the three Need, demand, and utilization.
distinct concepts often
debated in health care?
1. Health Status
What determines health 2. Avalability of effective health care
care need? 3. Social Judgment distinguishing needs vs wants
How is demand for health Demand is an expression of the desire to obtain
care defined? health care based on preferences and
resources.
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5
, 7/22/25, 3:35 PM
What does utilization Utilization is the quantity of health care
represent in health consumed, determined by demand and supply
care?
Why is it important to Misinterpreting these can lead to inaccurate
distinguish between planning for health resources and inequities in
need, demand, and health care services.
utilization?
What factors determine Preferences, price of health care, substitutes,
an individual's demand complements, income, health status, and
for health care? provider.
How does the price of Higher prices decrease demand (law of demand).
health care affect Non-monetary prices, like time costs, also influence
demand? demand.
How do the prices of Lower prices of substitutes reduce
substitutes and demand for the original service. Lower
complements affect prices of complements increase demand
health care demand? for related services.
How does income 1. Ability to pay for health care.
influence health care 2. Higher earning capacity increases investment in
demand?A: health.
3. Higher time costs can limit care-seeking.
What is Supplier-Induced Demand for care influenced by the provider due to their
Demand (SID)? informational advantage.
What are the two Positive: Emphasizes the ability of providers to shift
categories of SID demand.
definitions? Normative: Focuses on financial self-interest leading to
unnecessary services.
2/1
5
EC248 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS 100% GUARANTEED SUCCESS
LATEST RELEASE 2025/2026
horizontal equity the principle that taxpayers with equal income should
pay equal tax.
vertical equity method of collecting income tax in which the
taxes paid increase with the amount of earned
income
procedural equity focuses on ensuring that programs, policies,
and processes are fair and inclusive for all
distributional efficiency a measure of how well an organization's
distribution processes are executed to achieve
optimal results.
Pareto Criterion A decision or change is good if it makes at least
one person better off without making anyone
else worse off
What are the three Need, demand, and utilization.
distinct concepts often
debated in health care?
1. Health Status
What determines health 2. Avalability of effective health care
care need? 3. Social Judgment distinguishing needs vs wants
How is demand for health Demand is an expression of the desire to obtain
care defined? health care based on preferences and
resources.
1/1
5
, 7/22/25, 3:35 PM
What does utilization Utilization is the quantity of health care
represent in health consumed, determined by demand and supply
care?
Why is it important to Misinterpreting these can lead to inaccurate
distinguish between planning for health resources and inequities in
need, demand, and health care services.
utilization?
What factors determine Preferences, price of health care, substitutes,
an individual's demand complements, income, health status, and
for health care? provider.
How does the price of Higher prices decrease demand (law of demand).
health care affect Non-monetary prices, like time costs, also influence
demand? demand.
How do the prices of Lower prices of substitutes reduce
substitutes and demand for the original service. Lower
complements affect prices of complements increase demand
health care demand? for related services.
How does income 1. Ability to pay for health care.
influence health care 2. Higher earning capacity increases investment in
demand?A: health.
3. Higher time costs can limit care-seeking.
What is Supplier-Induced Demand for care influenced by the provider due to their
Demand (SID)? informational advantage.
What are the two Positive: Emphasizes the ability of providers to shift
categories of SID demand.
definitions? Normative: Focuses on financial self-interest leading to
unnecessary services.
2/1
5
