Final

Question 1

If the Laspeyres price index rises by 10%, then:

Answer 1

Consumers are 10% worse off

Question 2

Based on the cost of living index proposed by Cutler et al. (1998) which considers both cost and life expectancy, curing heart attach became ___ between 1984 to 1991

Answer 2

Cheaper

Question 3

If E is total medical expenditure, P is price and Q is quantity of medical care, total medical expenditure is:

Answer 3

E=P*Q

Question 4

Based on the Dartmouth Atlas which tracks Medicare spending across the United States:

Answer 4

Patients with the same diagnosis receive different care depending on where they live

Question 5

Which statement is correct, comparing La Crosse, WI and Miami, FL:

Answer 5

Despite spending twice as much on Medicare in Miami, enrollees are equally healthy

Question 6

Which of the following options explain why might Miami and La Crosse have different health production functions?

Answer 6

All of the above

Question 7

Quantity of medical care may increase due to the following reasons, except:

Answer 7

Inflation

Question 8

Rise in cost is a bad thing:

Answer 8

If rising costs are due to rising prices

Question 9

In the last thirty years, US medical care CPI has been

Answer 9

Consistently higher than the overall inflation

Question 10

Based on Arrow’s impossibility theorem:

Answer 10

Societies do not necessarily have transitive preferences, even when everyone in them does

Question 11

Which one is not true about the private insurance market:

Answer 11

Maximizes government involvement

Question 12

Which on is not true about the universal public insurance market:

Answer 12

The government provides insurance to some citizens

Question 13

Which country does not offer compulsory private health insurance:

Answer 13

Sweden

Question 14

Which one is an option for health insurance market:

Answer 14

All of the above

Question 15

Which problem is not an issue in a universal public insurance:

Answer 15

Adverse selection

Question 16

Which type of coverage has the highest number of enrollees in the US:

Answer 16

Employer-sponsored health insurance

Question 17

Which medical specialty is sued the most frequently?

Answer 17

Neurosurgery

Question 18

Which one is the drawback of employer-sponsored health insurance:

Answer 18

Both a and b

Question 19

Which of the following strategies is effective in reducing moral hazard:

Answer 19

All of the above

Question 20

Which strategy is not used in Medicare to control moral hazard:

Answer 20

Cost effective analysis

Question 21

Which one is not true about prospective payment strategy:

Answer 21

Charges are based on procedures performed

Question 22

Which one is not a strategy used in managed care?

Answer 22

Group discounting

Question 23

Beveridge model is:

Answer 23

All of the above

Question 24

In US______have free choices

Answer 24

Doctors and patients both

Question 25

The face that the costs of insurance effectively come out of the worker’s wages is known as:

Answer 25

Wage pass-through

Question 26

Which one is not true about Medicare Part A:

Answer 26

Monthly premium is less than the monthly premium for Medicare part B

Question 27

Which theory does best explain the increasing trend in obesity in the past 150 years:

Answer 27

Decline in food prices

Question 28

What is the probability that a 60 year old surgeon has been sued for malpractice at least once in his/her career

Answer 28

100%

Question 29

Approximately how often are practitioners sued when they are negligent?

Answer 29

2% of the time

Question 30

What percentages of total health care costs are due to malpractice insurance premiums?

Answer 30

2%