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MHA 710 - HEALTHCARE
ECONOMICS - EXAM 3
Question: In order to be a successful price discriminator,
a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)?
CORRECT ANSWER: e. Both a and b.
Question: Legislation considered by Congress to restrict
legal immigration would:
CORRECT ANSWER: d. raise the costs of operating in
many of the nation's rural and inner-city hospitals.
Question: Physicians who own their own diagnostic
testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients. This
practice of self-referral is an example of:
CORRECT ANSWER: b. physician-induced demand.
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Question: Which of the following statements is true
concerning the trend in community hospital care between inpatient and outpatient services since the mid-1980s?
CORRECT ANSWER: d. Outpatient services have been
growing, while inpatient services have been declining.
Question: The amount that Medicare pays a hospital for
treating a Medicare patient is determined:
CORRECT ANSWER: a. at the point when the diagnosis
is made.
Question: Compared to the not-for-profit organizational
form, the for-profit environment
CORRECT ANSWER: a. allows for the transfer of assets.
Question: What is the most significant cost of attending
medical school?
CORRECT ANSWER: d. The income foregone.
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Question: Using the physician-control model to explain
hospital behavior leads to which of the following conclusions?
CORRECT ANSWER: a. Other medical inputs tend to be
overused to maximize physicians' productivity.
Question: Economies of scale exist when:
CORRECT ANSWER: a. long-run average costs decline
as output increases.
Question: Which of the following statements about the
distribution of physicians among specialties is true in the United States?
CORRECT ANSWER: c. There are twice as many
specialists as there are generalists.
Question: We have an expert-written solution to this
problem!Starting salaries for female obstetricians/gynecologists are higher than those of male obstetricians/gynecologists .What is the best explanation for this?
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CORRECT ANSWER: b. The demand for female
obstetricians/gynecologists is greater than the demand for male obstetricians/gynecologists .
Question: The rate of return on an investment in medical
education:
CORRECT ANSWER: e. is inversely related to the length
of time spent in formal schooling.
Question: Suppose the market for nursing services in a
local community is so dominated by a single community hospital that, for all practical purposes, it is considered a monopsony. Using the diagram below, answer the question.What is the equilibrium wage and level of employment under monopsony?
CORRECT ANSWER: c. W0 and E0.
Question: The following diagram depicts the market for
physicians' services that is originally in equilibrium at the point where demand and supply (D0 and S0) intersect. As