Economics of Health Care: Online Quizzes and Learning Resources

Question 1

Which characteristic is NOT present in market failures in health care?

Accepted Answer

Perfectly competitive markets

Answer

Negative externalities

Answer

Asymmetric information

Answer

Public goods

Question 2

What is the primary function of rationing in health care?

Accepted Answer

To ensure fair allocation of healthcare resources

Answer

To reduce healthcare expenses

Answer

To enhance the quality of healthcare

Answer

To prevent excessive use of healthcare services

Question 3

Identify a hallmark of market failure in the context of healthcare.

Accepted Answer

Notable negative externalities

Answer

Prominent positive externalities

Answer

Unrestricted market entry

Answer

Perfect information dissemination

Question 4

The idea of 'risk pooling' in healthcare insurance pertains to:

Accepted Answer

Distributing healthcare costs across a large population

Answer

Guaranteeing universal healthcare access

Answer

Lowering individual healthcare costs

Answer

Eliminating deductibles and co-payments

Question 5

A key ethical consideration in healthcare resource allocation is:

Accepted Answer

Equity

Answer

Efficiency

Answer

Autonomy

Answer

Paternalism

Question 6

The term 'rationing' in healthcare refers to:

Accepted Answer

Limiting healthcare services due to resource scarcity

Answer

Prioritizing healthcare services based on need

Answer

Charging for healthcare services

Answer

Denying healthcare services to specific groups

Question 7

What is the primary rationale for government involvement in healthcare provision?

Accepted Answer

To address market failures

Answer

To reduce healthcare costs

Answer

To increase access to healthcare

Answer

To improve the quality of healthcare

Question 8

What is the primary distinction between a single-payer healthcare system and a multi-payer healthcare system?

Accepted Answer

The number of entities responsible for financing healthcare

Answer

The extent of government involvement

Answer

The quality of healthcare provided

Answer

The cost of healthcare

Question 9

Which of the following is not a common ethical concern in healthcare?

Accepted Answer

Profit maximization

Answer

Confidentiality

Answer

Informed consent

Answer

Resource allocation

Question 10

What is the concept of moral hazard in healthcare?

Accepted Answer

Patients consuming more healthcare services than they would if they had to pay the full cost

Answer

Doctors providing unnecessary treatments to increase their income

Answer

Insurance companies denying coverage for certain treatments

Answer

Government rationing healthcare services

Question 11

What is the term for the increase in healthcare costs that outpaces the rate of inflation?

Accepted Answer

Medical inflation

Answer

Healthcare premium

Answer

Copayment

Answer

Deductible

Question 12

Which of the following characteristics is associated with market failure in healthcare?

Accepted Answer

Negative externalities

Answer

Positive externalities

Answer

High demand for healthcare services

Answer

Low supply of healthcare services

Question 13

In the United Kingdom, what are the main sources of funding for healthcare?

Accepted Answer

Taxes and national insurance

Answer

Private insurance and personal payments

Answer

International aid

Answer

Donations from companies and charities

Question 14

According to the World Health Organization (WHO), a primary objective of healthcare systems is to:

Accepted Answer

Maximize access to affordable healthcare for all

Answer

Ensure the highest profits for healthcare providers

Answer

Minimize government spending on healthcare

Answer

Eradicate all known diseases

Question 15

A potential benefit of government intervention in healthcare is:

Accepted Answer

Improved health outcomes for the population

Answer

Lower healthcare expenses

Answer

Greater choice for healthcare consumers

Answer

Reduced taxes

Question 16

Which of the following terms describes the situation where individuals use healthcare services without bearing the full cost?

Accepted Answer

Moral hazard

Answer

Adverse selection

Answer

Free rider problem

Answer

Negative externality

Question 17

A key ethical concern associated with healthcare rationing is:

Accepted Answer

Ensuring fairness and equity

Answer

Achieving maximum efficiency

Answer

Optimizing cost-effectiveness

Answer

Respecting patient autonomy

Question 18

The term that refers to the gap in health outcomes between different socioeconomic groups is:

Accepted Answer

Health inequality

Answer

Health equality

Answer

Health disparity

Answer

Health gap

Question 19

Which of the following describes a healthcare system founded on the principles of solidarity and risk-sharing?

Accepted Answer

Universal healthcare

Answer

Single-payer healthcare

Answer

Socialized healthcare

Answer

Private healthcare

Question 20

Which of the following terms refers to the study of how scarce resources are allocated in healthcare?

Accepted Answer

Health economics

Answer

Healthcare management

Answer

Medical ethics

Answer

Public health

Question 21

Define the concept of 'moral hazard' in the context of healthcare.

Accepted Answer

The tendency of individuals to use more healthcare services when they are insured

Answer

The tendency of healthcare providers to overprescribe treatments

Answer

The tendency of governments to spend excessively on healthcare

Answer

The tendency of pharmaceutical companies to charge inflated prices for drugs

Question 22

How does the 'law of diminishing returns' apply to healthcare spending?

Accepted Answer

Additional spending on healthcare results in smaller improvements in health outcomes

Answer

Healthcare spending eventually becomes ineffective

Answer

Healthcare spending must be continually increased to maintain health outcomes

Answer

Healthcare spending is always beneficial

Question 23

Describe the ethical principle of 'solidarity' in healthcare.

Accepted Answer

Access to healthcare should be universal, regardless of financial means

Answer

Healthcare should be primarily provided by the government

Answer

Individuals should be solely responsible for their healthcare expenses

Answer

Healthcare should be rationed based on need

Question 24

Which of the following is NOT a typical characteristic of a market failure in healthcare?

Accepted Answer

Perfect competition

Answer

Externalities

Answer

Incomplete information

Answer

Moral hazard

Question 25

Which type of healthcare system is characterized by universal coverage, government funding, and a single payer?

Accepted Answer

Single-payer system

Answer

Multi-payer system

Answer

Private insurance system

Answer

Free-market system

Question 26

What is a potential advantage of capitation payment in healthcare?

Accepted Answer

Reduces provider incentives for overtreatment

Answer

Improves patient access to primary care

Answer

Lowers overall healthcare costs

Answer

Increases healthcare quality

Question 27

What is the term used to describe the situation where patients take excessive risks due to having health insurance coverage?

Accepted Answer

Moral hazard

Answer

Adverse selection

Answer

Principal-agent problem

Answer

Free rider problem

Question 28

What is the primary purpose of health technology assessment (HTA)?

Accepted Answer

To evaluate the clinical effectiveness, cost-effectiveness, and broader impact of new and existing healthcare technologies

Answer

To develop and market new healthcare technologies

Answer

To regulate the healthcare industry and ensure patient safety

Answer

To reduce healthcare costs through cost-cutting measures

Question 29

Identify the characteristic that does NOT apply to market failures in healthcare:

Accepted Answer

Perfect competition

Answer

Imperfect information

Answer

Externalities

Answer

Inequality of access

Question 30

Which potential advantage is unique to a universal healthcare system?

Accepted Answer

Guaranteed healthcare access for all citizens

Answer

Reduced administrative costs

Answer

Lower overall healthcare spending

Answer

Greater choice of healthcare providers

Question 31

Which of the following is NOT a characteristic of market failure in healthcare?

Accepted Answer

Positive externalities

Answer

Natural monopolies

Answer

Incomplete information

Answer

Negative externalities

Question 32

How does asymmetric information affect the healthcare market?

Accepted Answer

It can lead to adverse selection, where people with higher health risks are more likely to buy insurance.

Answer

It leads to lower healthcare costs.

Answer

It reduces the demand for healthcare.

Answer

It improves the quality of healthcare services.

Question 33

How does income inequality affect health outcomes?

Accepted Answer

Low-income individuals tend to have worse health outcomes due to factors like limited access to healthcare and healthy living conditions.

Answer

High-income individuals have better health outcomes.

Answer

Income inequality has no effect on health outcomes.

Question 34

What is a key principle of cost-benefit analysis in healthcare?

Accepted Answer

Determining whether the benefits of a healthcare intervention outweigh its costs, considering both financial and non-financial factors.

Answer

Reducing government involvement in healthcare.

Answer

Maximizing healthcare spending to improve health outcomes.

Question 35

How can the healthcare system be made more efficient and equitable?

Accepted Answer

Implementing reforms that address market failures, such as promoting competition in the healthcare sector while ensuring quality and accessibility.

Answer

Increasing government spending on healthcare.

Answer

Reducing the number of healthcare providers.

Answer

Privatizing all healthcare services.