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impact the quantity of care received by the relative.

impact the quantity of care received by the relative..

impact the quantity of care received by the relative.

Question 2 of 40

0.0/ 5.0 Points

The impact of SID in the health care market:

A. appears to be small, even though it is hard to measure.

B. appears to be large, and is easy to measure.

C. has rendered traditional demand and supply analysis useless.

D. is expected to be larger for services which have a low demand elasticity.

Question 3 of 40

5.0/ 5.0 Points

With declining occupancy rates, hospitals have faced financial pressure. Hospital mergers lead to offsetting impacts with __________ leading to potentially lower costs, but __________ leading to potentially higher prices.

A. monopoly power; higher input prices

B. economies of scale; monopoly power

C. increased revenue; higher input prices

D. lower input prices; less regulation

Question 4 of 40

5.0/ 5.0 Points

Education, feedback, and surveillance programs are concerned with:

A. reducing the amount of inappropriate medical care.

B. increasing patient access to the latest medical technology.

C. retaining a qualified hospital staff.

D. the low enrollments in medical school.

Question 5 of 40

5.0/ 5.0 Points

Which of the following statements regarding the disutility of discretion model is FALSE?

A. The marginal utility to inducement is negative.

B. Physicians always respond to increased competition by providing more induced services.

C. If a physician decides to induce more services, a larger amount of income is necessary to compensate for the additional inducements.

D. With income on the vertical axis and inducement on the horizontal axis, the slope of the indifference curve must be positive.

Question 6 of 40

0.0/ 5.0 Points

Analyses in the past decade suggest that since the 1980s the medical arms race has:

A. accelerated with hospitals charging ever-higher prices for higher quality.

B. led to more hospitals? leaving rural markets.

C. abated with hospitals facing competitive pressures with respect to price.

D. abated with hospitals facing less competition in the marketplace.

Question 7 of 40

0.0/ 5.0 Points

Home health care is less expensive than hospital or nursing home care because:

A. caregivers? time costs nothing because they are not working outside the home.

B. caregivers only need to be paid minimum wage.

C. the home care is much less capital intensive than care in institutions.

D. costs cannot be computed.

Question 8 of 40

0.0/ 5.0 Points

The MAR analysis was based on the premise that:

A. consumers wanted the highest quality care irrespective of costs.

B. consumers were indifferent to the costs because insurers (or the government) would cover higher quality.

C. hospitals colluded to raise costs.

D. hospitals are indifferent to costs because the market will respond accordingly.

Question 9 of 40

0.0/ 5.0 Points

National health care spending in the United States __________ from __________ billion to __________ billion between 1980 and 2008.

A. decreased; $1,988; $246

B. increased; $246; $2,339

C. increased; $27; $700

D. increased; $27; $2,339

Question 11 of 40 5.0/ 5.0 Points
Suppose that a family employs a nurse at a wage of $20 per hour for 20 hours per week to care for an invalid relative. They then choose to provide the care themselves to save the money. The economic results of this decision may:
A. constitute gains to society, as long as the care-givers do not have to quit their jobs.
B. constitute reductions in earnings and/or leisure for family members.
C. impact the quantity of care received by the relative.
D. improve the families? incomes significantly.




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