Health Economics Problem Sets
1. What are the likely consequences on the U.S. market for tobacco products of the
events listed below?
a. Does the supply curve or the demand curve shift? In which direction?
b. State whether the equilibrium price
1. Calculating costs in an economic evaluation is very important. Classify the following costs
as direct (D), indirect (ID), or intangible (IT).
Grief and anxiety
Home health care services
Informal care performed by
Practice Questions for
1. What are the likely consequences of the following events on the U.S. market for cosmetic
surgery? For each event (i, ii, iii, iv and v), answer a), b), and c), questions below.
a. Does the supply cur
Chapter 2 Multiple Choice
1. An inferior good
a. has a negative income elasticity.
b. is one where the demand curve shifts to the left when income goes up.
c. exists only in theory.
d. is a low-quality good.
e. Both a and b are true.
2. Which of the follo
Chapter 6 Multiple Choice Questions
1. Early in U.S. history health insurance was provided to cover
a. income loss due disability or disease.
b. hospital expenses.
c. routine physicians services.
d. the catastrophic cost of medical care including hospital
Chapter 1 Multiple Choice Questions
1. Opportunity cost is a measure of
a. foregone opportunities.
b. value based on the alternative not chosen.
c. value in terms of the cost of production.
d. the difference between production cost and resource cost.
Homework: Write-up a short (1 page) description of your day and the public health implications.
The alarm clock ringed at 6:00 am every morning, I had to wake up early to avoid traffic
jams. As soon as I got out of bed and went straight to the b
Documented problem solving
If the price elasticity of demand for a product is equal to 1, then a
decrease in price will cause:
a) An increase in total revenue.
b) A decrease in total revenue.
c) No change in total revenue.
d) An increase in to
HADM 5333 Health Economics Problem Sets
1. In the year 2006, in Anytown, Texas, suppose that one person is willing to pay
$1,000 for relief from hay fever; another two are willing to pay $350; about five
more are willing to pay $50; one is willing to pay
1. The table below represents the costs and benefits of four alternative programs designed to
treat a life-threatening disease that afflicts all people over the age of 18 (children are immune to
Health Care Insurance Example
1. Suppose Elizabeth has the following utility of income function:
Without insurance Elizabeth receives income of 50 with probab