LSUS MHA 710 Economics Exam 1
Frequently Tested Exam Questions With
Verified Multiple Choice and Conceptual
Actual 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. What is the equilibrium wage and level of employment under monopsony?
- ANSWER W0 and E0
2. If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage and level of employment
be? - ANSWER W1 and E1
3. What is the most significant cost of attending medical school? - ANSWER
The income foregone
4. Which of the following would increase the supply of physicians? - ANSWER
More scholarships and grants to cover medical school tuition
5. Which of the following statements about the distribution of physicians
among specialties is true in the United States? - ANSWER There are
twice as many specialists as there are generalists.
,6. According to surveys by the Medical Group Management Association, the
average primary care physician earned approximately _______ in 2010. -
ANSWER $200,00
7. Which of the following represents the largest category of health care
spending in the United States? - ANSWER Hospital Care
8. The direct effect of a shortage of hospital beds in a hospital services market
is: - ANSWER Upward pressure on the price of a hospital stay.
9. All of the following will cause a shift in the medical care supply curve,
except: - ANSWER A change in the percentage of the population with
health insurance.
10.Assuming providers will accommodate patient desires, what effect would a
binding price ceiling have on the health care market? - ANSWER Price
will decrease to adhere to the price ceiling & quantity will increase.
11.Suppose the U.S. Food & Drug Administration restricts the amount of
prescription opiates produced & sold in the U.S. market. What is the likely
effect on the market for drugs used to control chronic pain the United
States? - ANSWER The price of prescription opiates will increase & the
quantity consumed will decrease.
12.The following graph depicts the market for CT scanners in the United States:
, 13.Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per
machine. If the government places a $100,000 excise tax on each new
scanner sold, the new equilibrium price will be: - ANSWER less than
$1.30 million.
14.Suppose robotic technology improves the results of abdominal surgery—
less time to perform the surgery, faster recovery times, and fewer mistakes.
What is the impact on the market for abdominal surgery using this new
technology? - ANSWER Demand for robot-assisted surgery will increase,
& prices will rise.
15.If a hospital is experiencing economies of scale: - ANSWER Its average
cost curve is negatively sloped as output increases.
16.Which of the following does NOT contribute to wasteful spending in
medical care? - ANSWER Price transparency.
17.Which of the following statements is based on positive analysis? - ANSWER
High health care prices are one of the primary reasons that the United
States spends more on medical care than other countries.
18.Which of the following is NOT considered to be a factor in the recent
slowing of health care spending? - ANSWER Growing U.S. gross
domestic product (GDP).
Frequently Tested Exam Questions With
Verified Multiple Choice and Conceptual
Actual 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. What is the equilibrium wage and level of employment under monopsony?
- ANSWER W0 and E0
2. If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage and level of employment
be? - ANSWER W1 and E1
3. What is the most significant cost of attending medical school? - ANSWER
The income foregone
4. Which of the following would increase the supply of physicians? - ANSWER
More scholarships and grants to cover medical school tuition
5. Which of the following statements about the distribution of physicians
among specialties is true in the United States? - ANSWER There are
twice as many specialists as there are generalists.
,6. According to surveys by the Medical Group Management Association, the
average primary care physician earned approximately _______ in 2010. -
ANSWER $200,00
7. Which of the following represents the largest category of health care
spending in the United States? - ANSWER Hospital Care
8. The direct effect of a shortage of hospital beds in a hospital services market
is: - ANSWER Upward pressure on the price of a hospital stay.
9. All of the following will cause a shift in the medical care supply curve,
except: - ANSWER A change in the percentage of the population with
health insurance.
10.Assuming providers will accommodate patient desires, what effect would a
binding price ceiling have on the health care market? - ANSWER Price
will decrease to adhere to the price ceiling & quantity will increase.
11.Suppose the U.S. Food & Drug Administration restricts the amount of
prescription opiates produced & sold in the U.S. market. What is the likely
effect on the market for drugs used to control chronic pain the United
States? - ANSWER The price of prescription opiates will increase & the
quantity consumed will decrease.
12.The following graph depicts the market for CT scanners in the United States:
, 13.Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per
machine. If the government places a $100,000 excise tax on each new
scanner sold, the new equilibrium price will be: - ANSWER less than
$1.30 million.
14.Suppose robotic technology improves the results of abdominal surgery—
less time to perform the surgery, faster recovery times, and fewer mistakes.
What is the impact on the market for abdominal surgery using this new
technology? - ANSWER Demand for robot-assisted surgery will increase,
& prices will rise.
15.If a hospital is experiencing economies of scale: - ANSWER Its average
cost curve is negatively sloped as output increases.
16.Which of the following does NOT contribute to wasteful spending in
medical care? - ANSWER Price transparency.
17.Which of the following statements is based on positive analysis? - ANSWER
High health care prices are one of the primary reasons that the United
States spends more on medical care than other countries.
18.Which of the following is NOT considered to be a factor in the recent
slowing of health care spending? - ANSWER Growing U.S. gross
domestic product (GDP).
