MHA 710 EXAM I
1). Because resources are scarce, what are the 3 important questions to ask
Ans: 1- WHAT shall we produce (or not)
2- HOW shall we produce it
3- WHO gets what produced
2). Cost
Ans: the value of a resource in its next best use
3). Marginal or incremental cost
Ans: the cost of producing an additional unit of output
4). Rational decision making
Ans: choosing the course of action that offers the best outcomes, given the constraints
one faces
5). Information asymmetry
Ans: when one party in a transaction has less information than the other party
6). Adverse selection
Ans: when buyers have better information than sellers.
ex: high-risk consumers are willing to pay more for insurance than low-risk consumers
are.
7). Social determinants of health
Ans: factors that affect health independently of healthcare (education & housing)
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, 8). Scarce resource
Ans: anything useful in consumption or production that has alternative uses.
9). Positive economics
Ans: using objective analysis and evidence to answer questions about individuals,
organizations, and societies (factual statements)
10). Normative economics
Ans: using values to identify the best options. subjective statements of what SHOULD
be
11). Input
Ans: a good or service used in production
12). Output
Ans: a good or service produced by an organization
13). Marginal analysis
Ans: analysis of the effects of small changes in a decision variable (price or volume of
output) on outcomes (costs, profits, or probability of recovery)
14). Life year
Ans: one additional year of life
15). Opportunity cost
Ans: value of what one cannot do as a result of making a choice
16). Managed care
Ans: loosely defined term that includes all plans except open-ended fee-for-service. it is
sometimes used to describe the techniques insurance companies use
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1). Because resources are scarce, what are the 3 important questions to ask
Ans: 1- WHAT shall we produce (or not)
2- HOW shall we produce it
3- WHO gets what produced
2). Cost
Ans: the value of a resource in its next best use
3). Marginal or incremental cost
Ans: the cost of producing an additional unit of output
4). Rational decision making
Ans: choosing the course of action that offers the best outcomes, given the constraints
one faces
5). Information asymmetry
Ans: when one party in a transaction has less information than the other party
6). Adverse selection
Ans: when buyers have better information than sellers.
ex: high-risk consumers are willing to pay more for insurance than low-risk consumers
are.
7). Social determinants of health
Ans: factors that affect health independently of healthcare (education & housing)
PaperStoc.com Page 1 of 8
, 8). Scarce resource
Ans: anything useful in consumption or production that has alternative uses.
9). Positive economics
Ans: using objective analysis and evidence to answer questions about individuals,
organizations, and societies (factual statements)
10). Normative economics
Ans: using values to identify the best options. subjective statements of what SHOULD
be
11). Input
Ans: a good or service used in production
12). Output
Ans: a good or service produced by an organization
13). Marginal analysis
Ans: analysis of the effects of small changes in a decision variable (price or volume of
output) on outcomes (costs, profits, or probability of recovery)
14). Life year
Ans: one additional year of life
15). Opportunity cost
Ans: value of what one cannot do as a result of making a choice
16). Managed care
Ans: loosely defined term that includes all plans except open-ended fee-for-service. it is
sometimes used to describe the techniques insurance companies use
PaperStoc.com Page 2 of 8
