LSUS MHA 710 Economics Frequently Tested
Exam Questions With Verified Multiple
Choice and Conceptual Actual 100% Correct
Detailed Answers
Guaranteed Pass!!Current Update!!
1. Efficacy - ANSWER The ability to achieve the desired result in an ideal
setting under controlled conditions.
2. The goal of health insurance is to: - ANSWER collect sufficient premiums
to cover all possible losses
3. Insurers try to minimize moral hazard by: - ANSWER charging
deductibles and coinsurance
4. What is responsible for over one-half of the gap in life expectancy between
the U.S. and Canada? - ANSWER Obesity
5. All of the following are true for indemnity insurance except that: - ANSWER
** it serves as the basis for all health insurance coverage in most
developed countries, including the United States.
-premiums are based on separate risk pools often organized by employers.
-it is often experience rated, with premiums based on expected losses.
,-it provides reimbursement for financial losses, including fire and life.
-it frequently includes coverage for losses due to casualty and theft
6. All the following are results of moral hazard, except: - ANSWER **
rational ignorance
-increased medical care spending
-higher health insurance premiums
-increased likelihood of visiting a physician
-deductibles and coinsurance
7. An increase in the excise tax on alcohol of $1 per liter: - ANSWER will
save lives when coupled with a uniform drinking age.
8. A prepaid hospital plan created by Baylor Hospital for a group of Dallas
public school teachers in 1929 is considered by many to be the forerunner
of : - ANSWER Blue Cross
9. The economic argument for legalizing drugs: - ANSWER is based on the
assumption that for most non-users, the demand is relatively price elastic.
10. All of the statements below are true according to the Organization for
Economic Cooperation and Development, EXCEPT? - ANSWER ** There
is very little difference in the prevalence of smoking between males and
females worldwide.
,-Almost 15 percent of all Medicaid spending is attributable to tobacco used of one
kind or another.
-Alcohol and smoking related illnesses are associated with over 500,000 deaths
annually.
-Smoking prevalence among 18-24 year old's is rising,
-The average smoker in the United States has a life expectancy that is almost 10
years smother than the average non-smoker's.
11. Insurance works best in situations where: - ANSWER there is low
probability of a large loss.
12. A ___ percentage of the French population is obese; they consume __ fat
than Americans do. - ANSWER small; less
13. All of the following statements are true regarding infant mortality in teh
United States, EXCEPT? - ANSWER ** Reducing the rate of still births
-Reduced drug use among expectant mothers
-Emphasis on improving infant health during the post-neonatal period.
-Delaying childbearing beyond the teen years.
-Prenatal care programs in low-income neighborhoods.
14. Moral hazard and adverse selection are both examples of: - ANSWER
asymmetric information
, 15. The U.S. perinatal mortality rate (late fetal deaths plus deaths in neonatal
period) was 5.89 in 2018, lower than thsoe found in: - ANSWER France,
Switzerland, and the United Kingdom
16. Suppose a group of 100 people seeks out an insurance company to
underwrite health insurance for its members. The expected medical spending for
the group is $150,000. If an additional 10 people who have expected medical
spending of $5,000 per person on average join the group, the new premium will
be approximately: - ANSWER $2,139
calculation: [(150,000+50,000)/110(1-0.15)]
17. A person with AIDS has a guaranteed right to apply for health insurance and
receive coverage at the same rate as a healthy person. What is the likely result for
the insurance company? - ANSWER Adverse selection
in 2001, life expectancy at birth in the United States was 77.2 years, increasing to
78.7 years in 2018. However, there remains a racial gap between Blacks and
Whites. White life expectancy in 2018 was 78.6 years, and Black life expectancy
was 74.7 years. Causes of mortality reveals in interesting picture. Among White __
have a much higher rate than in Blacks, where __ are more prevalent. - ANSWER
suicides and chronic respiratory disease; homicides and heart disease
Eliminating health disparities across various population groups requires that we: -
ANSWER address the source of disparities in behavioral, socioeconomic, and
environmental factors.
Exam Questions With Verified Multiple
Choice and Conceptual Actual 100% Correct
Detailed Answers
Guaranteed Pass!!Current Update!!
1. Efficacy - ANSWER The ability to achieve the desired result in an ideal
setting under controlled conditions.
2. The goal of health insurance is to: - ANSWER collect sufficient premiums
to cover all possible losses
3. Insurers try to minimize moral hazard by: - ANSWER charging
deductibles and coinsurance
4. What is responsible for over one-half of the gap in life expectancy between
the U.S. and Canada? - ANSWER Obesity
5. All of the following are true for indemnity insurance except that: - ANSWER
** it serves as the basis for all health insurance coverage in most
developed countries, including the United States.
-premiums are based on separate risk pools often organized by employers.
-it is often experience rated, with premiums based on expected losses.
,-it provides reimbursement for financial losses, including fire and life.
-it frequently includes coverage for losses due to casualty and theft
6. All the following are results of moral hazard, except: - ANSWER **
rational ignorance
-increased medical care spending
-higher health insurance premiums
-increased likelihood of visiting a physician
-deductibles and coinsurance
7. An increase in the excise tax on alcohol of $1 per liter: - ANSWER will
save lives when coupled with a uniform drinking age.
8. A prepaid hospital plan created by Baylor Hospital for a group of Dallas
public school teachers in 1929 is considered by many to be the forerunner
of : - ANSWER Blue Cross
9. The economic argument for legalizing drugs: - ANSWER is based on the
assumption that for most non-users, the demand is relatively price elastic.
10. All of the statements below are true according to the Organization for
Economic Cooperation and Development, EXCEPT? - ANSWER ** There
is very little difference in the prevalence of smoking between males and
females worldwide.
,-Almost 15 percent of all Medicaid spending is attributable to tobacco used of one
kind or another.
-Alcohol and smoking related illnesses are associated with over 500,000 deaths
annually.
-Smoking prevalence among 18-24 year old's is rising,
-The average smoker in the United States has a life expectancy that is almost 10
years smother than the average non-smoker's.
11. Insurance works best in situations where: - ANSWER there is low
probability of a large loss.
12. A ___ percentage of the French population is obese; they consume __ fat
than Americans do. - ANSWER small; less
13. All of the following statements are true regarding infant mortality in teh
United States, EXCEPT? - ANSWER ** Reducing the rate of still births
-Reduced drug use among expectant mothers
-Emphasis on improving infant health during the post-neonatal period.
-Delaying childbearing beyond the teen years.
-Prenatal care programs in low-income neighborhoods.
14. Moral hazard and adverse selection are both examples of: - ANSWER
asymmetric information
, 15. The U.S. perinatal mortality rate (late fetal deaths plus deaths in neonatal
period) was 5.89 in 2018, lower than thsoe found in: - ANSWER France,
Switzerland, and the United Kingdom
16. Suppose a group of 100 people seeks out an insurance company to
underwrite health insurance for its members. The expected medical spending for
the group is $150,000. If an additional 10 people who have expected medical
spending of $5,000 per person on average join the group, the new premium will
be approximately: - ANSWER $2,139
calculation: [(150,000+50,000)/110(1-0.15)]
17. A person with AIDS has a guaranteed right to apply for health insurance and
receive coverage at the same rate as a healthy person. What is the likely result for
the insurance company? - ANSWER Adverse selection
in 2001, life expectancy at birth in the United States was 77.2 years, increasing to
78.7 years in 2018. However, there remains a racial gap between Blacks and
Whites. White life expectancy in 2018 was 78.6 years, and Black life expectancy
was 74.7 years. Causes of mortality reveals in interesting picture. Among White __
have a much higher rate than in Blacks, where __ are more prevalent. - ANSWER
suicides and chronic respiratory disease; homicides and heart disease
Eliminating health disparities across various population groups requires that we: -
ANSWER address the source of disparities in behavioral, socioeconomic, and
environmental factors.
