MHA 710 Exam 1 Question s with Correct Answers 100% Verified Graded A% 2024 What is "economics"? - Correct 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? - Correct Answer 1. The central roles of risk and uncertainty
- The complexities created by insurance
- The perils produced by information asymmetries
- The problems posed by not-for-profit organizations
- The rapid and confusing course of technical and institutional change
What does asymmetric information mean? Can you give an example? - Correct Answer When one party in a transaction has less information than 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? - Correct 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 high-risk from low-risk consumers are unlikely to be profitable.) What is the problem of scarcity? - Correct 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? - Correct Answer focuses on individuals' efforts to best realize their goals, given their resources. 1 / 2
What does it mean to says resources are scarce? - Correct Answer Anything useful in consumption or production that has alternative uses.What is opportunity cost? - Correct Answer Potential loss from a missed opportunity. Passing up the next best choice.What does "marginal" refer to? - Correct Answer The examination of the costs and benefits through a small change in the production of goods What does efficiency refer to? - Correct 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? - Correct 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? - Correct Answer Describe, 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. - Correct 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? - Correct 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.What is a life year? And what is it used for in the context of this chapter? - Correct Answer One additional year of life. It can equal one added year of life for an individual or an average of 1/nth of a year of life for n people. An example is spending $1 million by reducing childhood obesity and saving thousands of lives or using if for colonoscopies in 81 year old african american men and saving few lives.
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