Sample First Test Answers

Sample First Test Answers - NAME_SAMPLE FIRST TEST ANSWERS...

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1 NAME:___SAMPLE FIRST TEST ANSWERS– NOTE YOURS WILL NOT COVER CH. 5 AND WILL BE 1.5 HOURS __ Health Economics First Test, Georgia State University, Rashad Thursday, February 7 th , 2008, 4:30 – 6:30pm Please put all answers on the question sheet. You have two hours to finish the test. You may use your textbook, notes, and handouts in answering. Please use full sentences when answering. Best of luck. 1. (5 points) According to the Mosby Medical Encyclopedia , what is the definition of health? List four inputs in the health production function. Health is “a state of physical, mental, and social well-being and the absence of disease or other abnormal condition.” Inputs in the health production function include medical care, technology, profile, lifestyle, socioeconomic status, and the environment. 2. (5 points) How is medical care different from other goods? In answering, list the four I s that your book discusses, carefully defining each. Medical care is very different from other commodities, as it is made up of a myriad of heterogeneous goods and services. It is intangible because it is incapable of being assessed by the five senses. It is inseparable because both production by physicians and consumption by patients take place simultaneously. Because they occur simultaneously, medical care cannot be stockpiled, and so maintaining an inventory of medical care is not possible. Also, the composition and intensity of medical care can differ greatly depending on the provider, the consumer, and the point in time, and so medical care services are thus inconsistent . 3. (8 points) What does “flat-of-the-curve” medicine refer to? Explain using a specific everyday example. For which age groups might medical care have the most effect? “Flat-of-the-curve” medicine refers to the small marginal impact of medical care services on the health status of individuals. It refers to the flatter portion of the slope of the total product curve when looking at the effect of medical care on health production. An example would be if a person did little in terms of lifestyle changes to prevent the onset of an illness and then consumed medical care in order to improve his health. If health does not improve much, then the individual is probably consuming medical care at a point where the impact on health is negligible. Groups for which medical care may be most likely to have an effect include vulnerable populations such as infants and the elderly (see p.41 of textbook). 4. (2 points) What are “malignant neoplasms,” said to be the second leading cause of death in the United States? Malignant neoplasms are cancers. 5. (5 points) What is the significance of the law of large numbers when third-party payers are involved? The law of large numbers implies that whereas single events may be random and largely unpredictable, the average outcome
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This note was uploaded on 02/20/2010 for the course ECON 4210 taught by Professor Rashad during the Spring '10 term at Georgia State.

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Sample First Test Answers - NAME_SAMPLE FIRST TEST ANSWERS...

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