MHA 710 - HEALTHCARE ECONOMICS - EXAM 3 2025 UPDATED ACTUAL EXAM
WITH CORRECT SOLUTIONS.
In order to be a successful price discriminator, a provider must have a degree of market power (depicted
by a downward-sloping demand curve) and meet what other condition(s)?
a. Customers cannot know that different prices are being charged.
b. Markets must be segmentable, identifying differences in ability to pay.
c. Demand for services must be relatively price elastic.
d. Profitable service expansion opportunities must be limited.
e. The provider must have excess capacity to accommodate the extra business. - (ANSWER)b. Markets
must be segmentable, identifying differences in ability to pay.
Legislation considered by Congress to restrict legal immigration would:
a. surprise many policymakers because Congress finds it difficult to agree on much of anything regarding
immigration.
b. improve employment prospects for native-born Americans.
c. have little effect on medical markets, as so few physicians practicing medicine in the United States are
foreigners.
d. raise the costs of operating in many of the nation's rural and inner-city hospitals.
e. allow more Americans trained abroad to compete for openings in United States' residency programs. -
(ANSWER)d. raise the costs of operating in many of the nation's rural and inner-city hospitals.
Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees
for them, and have higher total bills to patients. This practice of self-referral is an example of:
a. cognitive dissonance.
b. physician-induced demand.
c. moral hazard.
d. adverse selection.
e. res ipsa loquitur. - (ANSWER)b. physician-induced demand.
Which of the following statements is true concerning the trend in community hospital care between
inpatient and outpatient services since the mid-1980s?
,MHA 710 - HEALTHCARE ECONOMICS - EXAM 3 2025 UPDATED ACTUAL EXAM
WITH CORRECT SOLUTIONS.
a. Both inpatient and outpatient services have been declining.
b. There has been no noticeable trend in either inpatient or outpatient services.
c. Both inpatient and outpatient services have been growing.
d. Outpatient services have been growing, while inpatient services have been declining.
e. Outpatient services have been declining, while inpatient services have been growing. - (ANSWER)d.
Outpatient services have been growing, while inpatient services have been declining.
The amount that Medicare pays a hospital for treating a Medicare patient is determined:
a. at the point when the diagnosis is made.
b. at the time of admission to the hospital.
c. before the patient sees a physician.
d. after the hospital bill is reviewed by Medicare auditors.
e. after medical services are provided. - (ANSWER)a. at the point when the diagnosis is made.
Compared to the not-for-profit organizational form, the for-profit environment
a. allows for the transfer of assets.
b. lacks a profit motive.
c. gives shareholders higher returns on their investment
d. provides patients with higher quality of care.
e. does not provide charity care. - (ANSWER)a. allows for the transfer of assets.
What is the most significant cost of attending medical school?
a. Books and incidentals
b. Room and board
c. Tuition and fees
d. The income foregone - (ANSWER)d. The income foregone
, MHA 710 - HEALTHCARE ECONOMICS - EXAM 3 2025 UPDATED ACTUAL EXAM
WITH CORRECT SOLUTIONS.
Using the physician-control model to explain hospital behavior leads to which of the following
conclusions?
a. Other medical inputs tend to be overused to maximize physicians' productivity.
b. All investment decisions will be based on optimal resource use.
c. The use of operating rooms will be maximized with little excess capacity.
d. Physicians will strive to use the nursing staff efficiently. - (ANSWER)a. Other medical inputs tend to be
overused to maximize physicians' productivity.
Economies of scale exist when:
a. long-run average costs decline as output increases.
b. long-run average costs increase as output increases.
c. long-run average costs are constant.
d. short-run average costs decline.
e. short-run average costs increase. - (ANSWER)a. long-run average costs decline as output increases.
Which of the following statements about the distribution of physicians among specialties is true in the
United States?
a. There are twice as many generalists as there are specialists.
b. The majority of physicians specialize in general/family practice.
c. There are twice as many specialists as there are generalists.
d. The specialty distribution in the United States is similar to that of the rest of the world. - (ANSWER)c.
There are twice as many specialists as there are generalists.
Starting salaries for female obstetricians/gynecologists are higher than those of male
obstetricians/gynecologists . What is the best explanation for this?
a. There are more males in obstetrics/gynecology residency programs than females.
b. The demand for female obstetricians/gynecologists is greater than the demand for male
obstetricians/gynecologists .
WITH CORRECT SOLUTIONS.
In order to be a successful price discriminator, a provider must have a degree of market power (depicted
by a downward-sloping demand curve) and meet what other condition(s)?
a. Customers cannot know that different prices are being charged.
b. Markets must be segmentable, identifying differences in ability to pay.
c. Demand for services must be relatively price elastic.
d. Profitable service expansion opportunities must be limited.
e. The provider must have excess capacity to accommodate the extra business. - (ANSWER)b. Markets
must be segmentable, identifying differences in ability to pay.
Legislation considered by Congress to restrict legal immigration would:
a. surprise many policymakers because Congress finds it difficult to agree on much of anything regarding
immigration.
b. improve employment prospects for native-born Americans.
c. have little effect on medical markets, as so few physicians practicing medicine in the United States are
foreigners.
d. raise the costs of operating in many of the nation's rural and inner-city hospitals.
e. allow more Americans trained abroad to compete for openings in United States' residency programs. -
(ANSWER)d. raise the costs of operating in many of the nation's rural and inner-city hospitals.
Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees
for them, and have higher total bills to patients. This practice of self-referral is an example of:
a. cognitive dissonance.
b. physician-induced demand.
c. moral hazard.
d. adverse selection.
e. res ipsa loquitur. - (ANSWER)b. physician-induced demand.
Which of the following statements is true concerning the trend in community hospital care between
inpatient and outpatient services since the mid-1980s?
,MHA 710 - HEALTHCARE ECONOMICS - EXAM 3 2025 UPDATED ACTUAL EXAM
WITH CORRECT SOLUTIONS.
a. Both inpatient and outpatient services have been declining.
b. There has been no noticeable trend in either inpatient or outpatient services.
c. Both inpatient and outpatient services have been growing.
d. Outpatient services have been growing, while inpatient services have been declining.
e. Outpatient services have been declining, while inpatient services have been growing. - (ANSWER)d.
Outpatient services have been growing, while inpatient services have been declining.
The amount that Medicare pays a hospital for treating a Medicare patient is determined:
a. at the point when the diagnosis is made.
b. at the time of admission to the hospital.
c. before the patient sees a physician.
d. after the hospital bill is reviewed by Medicare auditors.
e. after medical services are provided. - (ANSWER)a. at the point when the diagnosis is made.
Compared to the not-for-profit organizational form, the for-profit environment
a. allows for the transfer of assets.
b. lacks a profit motive.
c. gives shareholders higher returns on their investment
d. provides patients with higher quality of care.
e. does not provide charity care. - (ANSWER)a. allows for the transfer of assets.
What is the most significant cost of attending medical school?
a. Books and incidentals
b. Room and board
c. Tuition and fees
d. The income foregone - (ANSWER)d. The income foregone
, MHA 710 - HEALTHCARE ECONOMICS - EXAM 3 2025 UPDATED ACTUAL EXAM
WITH CORRECT SOLUTIONS.
Using the physician-control model to explain hospital behavior leads to which of the following
conclusions?
a. Other medical inputs tend to be overused to maximize physicians' productivity.
b. All investment decisions will be based on optimal resource use.
c. The use of operating rooms will be maximized with little excess capacity.
d. Physicians will strive to use the nursing staff efficiently. - (ANSWER)a. Other medical inputs tend to be
overused to maximize physicians' productivity.
Economies of scale exist when:
a. long-run average costs decline as output increases.
b. long-run average costs increase as output increases.
c. long-run average costs are constant.
d. short-run average costs decline.
e. short-run average costs increase. - (ANSWER)a. long-run average costs decline as output increases.
Which of the following statements about the distribution of physicians among specialties is true in the
United States?
a. There are twice as many generalists as there are specialists.
b. The majority of physicians specialize in general/family practice.
c. There are twice as many specialists as there are generalists.
d. The specialty distribution in the United States is similar to that of the rest of the world. - (ANSWER)c.
There are twice as many specialists as there are generalists.
Starting salaries for female obstetricians/gynecologists are higher than those of male
obstetricians/gynecologists . What is the best explanation for this?
a. There are more males in obstetrics/gynecology residency programs than females.
b. The demand for female obstetricians/gynecologists is greater than the demand for male
obstetricians/gynecologists .
