Test Bank For Health Economics and Policy 7th Edition Henderson
Test Bank For Health Economics and Policy 7th Edition Henderson
Test Bank For Health Economics and Policy 7th Edition Henderson
2. The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney
stones with sound waves) is
a. defined by the dollar cost of the equipment.
b. the same for every health care provider.
c. measured by the difference between the expected revenues from selling the
services of the lithotripter and the invoice cost of the machine.
d. defined by the next best use of the money invested in the equipment.
e. impossible to calculate.
4. According to recent public opinion polls, what percentage of Americans are satisfied with the
quality of the medical care they receive?
a. 15 percent.
b. 40 percent.
c. 65 percent.
d. 70 percent.
e. 90 percent.
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in whole or in part.
5. Charging higher prices for one category of patients in order to provide free or subsidized care
to another group is called
a. price discrimination.
b. cost-shifting.
c. categorical costing.
d. reprehensible and unethical.
e. creative accounting.
6. According to economic theory what is the optimal percentage of GDP to be spent on medical
care?
a. 6 percent.
b. 8 percent.
c. 10 percent.
d. 12 percent.
e. There is no widely-accepted way to determine the optimal percentage.
7. The 1974 federal legislation that exempted employers from certain state laws governing
health insurance was
a. COBRA
b. ERISA
c. CON
d. HIPAA
e. SCHIP
10. Self-insurance refers to: the practice of setting aside funds to pay for medical care expenses
instead of paying premiums to an insurance company. Approximately, _______ of all
employees who participate in group insurance plans work for firms that self-insure.
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
in whole or in part.
a. starting one’s own insurance company
b. buying insurance from a not for profit entity
c. setting aside fund to pay for medical care expenses instead of buying insurance
d. none of these
e. both a and b
11. Which of the following is not a characteristic that makes medical care different from other
commodities?
a. Demand for medical care is irregular.
b. Sellers have more information than buyers.
c. Third-party payers abound.
d. For-profit providers play a major role in delivering medical care.
e. The transaction itself if filled with uncertainty.
Structured Discussion:
1. Resolved: The United States system of health care delivery is in a state of crisis.
2. Resolved: The recent slowing of health care spending as a share of gross domestic
product will continue. In other words, the relative size of the health care sector has
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
in whole or in part.