LSUS MHA 710 EXAM 1 HEALTHCARE ECONOMICS NEWEST ACTUAL EXAM COMPLETE 100 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

1 | P a g e LSUS MHA 710 EXAM 1 HEALTHCARE ECONOMICS NEWEST 2024-2025 ACTUAL EXAM COMPLETE 100 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ What is "economics"? - ANSWER- A Map for decision making. Economics analyzes the allocation of scarce resources. What are some of the specific challenges faced by managers in healthcare? - ANSWER- 1. The central roles of risk and uncertainty 2. The complexities created by insurance 3. The perils produced by information asymmetries 4. The problems posed by not-for-profit organizations 5. The rapid and confusing course of technical and institutional change What does asymmetric information mean? Can you give an example? - ANSWER- When one party in a transaction has less information than 2 | P a g e the other party. For example, physicians and other healthcare providers usually understand patients' medical options better than patients do. Unaware of their choices, patients may accept recommendations for therapies that are not cost-effective or, recognizing their vulnerability to physicians' self-serving advice, may resist recommendations made in their best interest. What is adverse selection? - ANSWER- A situation that occurs when buyers have better information than sellers. For example, high-risk consumers are willing to pay more for insurance than low-risk consumers are. (Organizations that have difficulty distinguishing highrisk from low-risk consumers are unlikely to be profitable.) What is the problem of scarcity? - ANSWER- Demand for a good or service is greater than the availability What does it mean to say people are assumed to make choices rationally? - ANSWER- focuses on individuals' efforts to best realize their goals, given their resources. What does it mean to says resources are scarce? - ANSWER- Anything useful in consumption or production that has alternative uses. What is opportunity cost? - ANSWER- Potential loss from a missed opportunity. Passing up the next best choice. 3 | P a g e What does "marginal" refer to? - ANSWER- The examination of the costs and benefits through a small change in the production of goods What does efficiency refer to? - ANSWER- No way to rearrange production of goods in a way that makes one person more better off without making somebody else worse off. How well an economy uses scare resources to meet the needs/wants of their customers How do positive economic statements differ from normative economic statements? - ANSWER- Positive economics is objective while normative economics is subjective. Facts/ What is vs What should be How can economics be applied to the health sector? - ANSWERDescribe, Explain, Evaluate, Plan As we progress through the chapters, think about the special characteristics that apply to the health sector that might limit the applicability of traditional economic models. - ANSWER- Social determinants of health, few insurance companies that providers rely on, not a perfectly competitive market How are healthcare products both outputs and inputs? Can you give an example? - ANSWER- Products (goods and services are considered products) are commonly both inputs and outputs. For example, a surgical tool is an input into a surgery and an output of a surgical tool company. Similarly, the surgery itself can be considered an output of the surgical team or an input into the health of the patient.