Question 1)

A 2017 study showing that the proportion of people with health insurance is

higher among people with higher income Correct!

  

is an example of positive economics.

  

is an example of normative economics.

  

is an example of qualitative economics.

  

is an example of Australian economics.

 

Question 2

Insurance makes transactions complex because

  

it adds parties to medical transactions.  

  

different insurers have different payment rules and rates.  

  

different insurers have different claim forms.  Correct!    

All of the above.  

 

Question 3

Which of the following are scarce resources?

  

Space in a building

  

The time of a manager

  

Pharmaceuticals

Correct!

 

All of the above

 

Question 4

ADC makes latex-free tubing for blood pressure instruments. This is

   

an output of ADC.

 

   

an input into the production of health.

 

Correct!

   

both an input and an output.

 

   

These concepts do not apply to this sort of product.

 

 

Question 5

 

From an input perspective,

   

only the cost of a product matters.

 

   

only the performance of the product matters.

 

   

both the price and performance of the product matter.

 

Correct!

   

the price and performance of the product have to be compared to alternatives.

 

 

Question 6

Hospital spending in the United States

   

still accounts for the largest share of healthcare spending.

 

   

has risen as a share of the total since 2000.

 

   

is about six times as large as total nursing care and retirement facility expenditures.

 

Correct!

   

All of the above

 

 

Question 7

If it costs $500 to screen one child and $10 to screen each additional child, the

incremental cost of screening is

Correct!

   

$10.

 

   

$50.

 

   

$500.

 

   

None of the above

 

 

Question 8

If 100 treated patients live 0.2 years longer than 100 untreated patients, this represents

   

0.2 life years.

 

   

2 life years.

 

Correct!

   

20 life years.

 

   

500 life years.

 

 

Question 9

 

A new treatment for 1,000 costs $1,000,000. The life expectancy of each patient who got the new treatment increased by two years. What is its cost per life year?

   

$500,000.

 

   

$2,000.

 

   

$1,000.

 

Correct!

   

$500.

 

 

Question 10

A policy change that would reflect the input view of healthcare would be

   

subsidizing health insurance for low-income children.

 

Correct!

   

subsidizing construction of neighborhood walking trails.

 

   

eliminating payments by consumers for annual checkups.

 

   

All of the above

 

 

Question 11

The main function of insurance is to

   

make healthcare free.

 

   

reduce total spending on healthcare.

 

Correct!

   

pool the risks of healthcare costs.

 

   

All of the above

 

 

Question 12

Which of the following statements is true?

   

Out-of-pocket spending has been rising as a share of the total.

 

   

The uninsured tend to have above-average incomes.

 

   

HMOs have all but disappeared as types of insurance.

 

Correct!

   

The uninsured often have problems accessing appropriate care.

 

 

Question 13

A surgeon charges $5,000 for a procedure. His contract with your insurer sets an

allowed fee of 80% of charges. You are responsible for 25% of the allowed fee. How much do you pay?

Correct!

   

$1,000

 

   

$1,250

 

   

$2,250

 

   

$3,000

 

 

Question 14

Which of the following would be an example of case-based payment?

   

Four-tier pharmacy formularies  

   

Copayment waivers for primary care services

 

Correct!

   

Medicare DRGs  

   

All of the above

 

 

Question 15

Different payment systems are important because

   

they create different incentive systems for providers.