ECN 522 Final Exam 2015

Question 1                                                                                                       2.5 points out of 2.5

 

The dominant factor affecting medical care delivery and finance in the 1960s was

 

Question 2                                                                                                       2.5 points out of 2.5

 

Premiums based on experience ratings

 

Question 3                                                                                                       2.5 points out of 2.5

 

Approximately what percentage of total health care spending goes toward hospital care?

 

Question 4                                                                                                       0.0 points out of 2.5

 

Many say that one of the main reasons the British National Health System works in terms of good

 

health outcomes for its population is because

 

Question 5                                                                                                       2.5 points out of 2.5

 

One of the most serious weaknesses in the Medicare system is that

 

Question 6                                                                                                       0.0 points out of 2.5

 

The diagram below depicts a perfectly competitive market. P1 represents the equilibrium price

 

and P2 a price ceiling set by law. Which of the following statements is true?

 

 

Question 7                                                                                                       2.5 points out of 2.5

 

 

 

Falling hospital admissions and shorter length of hospital stays beginning in the mid 1980s may

 

be attributable to

 

Question 8                                                                                                       0.0 points out of 2.5

 

A fee schedule based on diagnosis-related groups potentially sets up an incentive to

 

 

 

 

 

 

 

 

 

 

 

Question 9                                                                                                       2.5 points out of 2.5

 

 

 

The most significant expansion of Medicaid since its inception in 1997 was enacted to cover

 

eligible children and it is referred to as

 

Question 10                                                                                                      2.5 points out of 2.5

 

Physicians who accept assignment on their Medicare patients

 

Question 11                                                                                                      2.5 points out of 2.5

 

Medicare and Medicaid were enacted by the Johnson administration in 1965 as amendments to

 

which federal law already in existence?

 

Question 12                                                                                                      2.5 points out of 2.5

 

The most important source of funding for Medicare is

 

Question 13                                                                                                      2.5 points out of 2.5

 

The amount that a hospital will be paid for treating a Medicare patient is determined

 

Question 14                                                                                                      2.5 points out of 2.5

 

Possibly, the most serious flaw in the Medicare system is the fact that

 

Question 15                                                                                                      2.5 points out of 2.5

 

Empirical studies show that most of the cost-savings provided by managed care are

 

accomplished via

 

Question 16                                                                                                      2.5 points out of 2.5

 

 

 

The health maintenance organization where the physicians are salaried employees of the HMO is

 

Called

 

Question 17                                                                                                      2.5 points out of 2.5

 

The most important aspect of the 1983 changes to Medicare that introduced diagnosis-related

 

groups (DRGs) was

 

Question 18                                                                                                      0.0 points out of 2.5

 

Empirical research indicates that the expansion of Medicaid has led to a number of unintended

 

consequences including

 

Question 19                                                                                                        Points out of 9.0

 

The RAND Health Insurance Study was set up to examine the effect of economic incentives on

 

medical care demand. Utilization was tracked for people who had various forms of insurance (e.g.

 

fee-for-service, low copays, coinsurance rates). What were the major findings of this study?

 

 

 

 

 

Question 20                                                                                                      Points out of 9.0

 

Discuss the opportunity cost of health care in terms of education. Why do you suppose taxpayers

 

are willing to invest in an inefficient health care system, but unwilling to invest in an under-funded

 

education system? Think in terms of time preferences.

 

 

 

Question 21                                                                                                      Points out of 9.0

 

Why is there a shortage of OB/GYN physicians in the U.S.?

 

Question 22                                                                                                      Points out of 9.0

 

Define monopsony? What is likely to happen to equilibrium price if there is a government

 

monopsony in the medical marketplace?

 

Question 23                                                                                                      Points out of 19.0

 

What would you say are the most important components of the Health Care Reform Bill (Patient

 

Protection and Affordable Care Act)? You can choose any three aspects of the bill, but state why

 

you think they are particularly important and integrate concepts we have learned in class.