Santerre/Neun 6e Chapter 1 Test Bank

1.

Which of the following best describes allocative efficiency?

a. Producing a medical service at the lowest possible cost.
b. Constructing a new medical facility to exactly offset a market shortage of such
services.
c. Increasing the amount of hospital beds available such that each person in the
population served has a bed allocated to him/her.
d. None of the above.
e. More than one of the above statements is true.

2.

Which of the following best describes productive efficiency?

a. Producing a medical service at the lowest possible cost.
b. Constructing a new medical facility to exactly offset a market shortage of such
services.
c. Increasing the amount of hospital beds available such that each person in the
population served has a bed allocated to him/her.
d. None of the above.
e. More than one of the above statements is true.

3.

Which of the following represents an opportunity cost?

a. Increases in medical technology.
b. Reduction in fees for Medicare patients.
c. Additional spending on public health initiatives.
d. Increased enrollments at medical schools.
e. Forgone geriatric care to provide additional maternity services.

4.

Any point _______ the production possibilities frontier is efficient and attainable.
a. inside of
b. along
c. outside of
d. both a and b are correct
e. both a and c are correct

5.

_______ help explain the law of increasing opportunity costs.

a. Differing consumer preferences
b. The characteristics of a pure market system
c. Advancements in technology
d. Imperfect substitutability of resources
e. Decreases in the availability of natural resources

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except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use.
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Santerre/Neun 6e Chapter 1 Test Bank

6.

Which of the following is not a basic question that must be answered as a result of scarcity?
a. Who should decide the amount of money spent on medical goods and services?
b. Who should receive the medical goods and services that are produced?
c. What mix of nonmedical and medical goods and services should be produced in
the macroeconomy?
d. What specific health care resources should be used to produce the chosen medical
goods and services?
e. What mix of medical goods and services should be produced in the health
economy?

7.

The U.S. market system is best described as a _______.

a. Perfect egalitarian system.
b. Pure market system.
c. Dictatorship.
d. Mixed distribution system.
e. More than one of the above statements is true.

8.

The components of the three-legged stool of medical care are _______.

a. costs, access, efficiency
b. costs, equity, access
c. access, equity, efficiency
d. efficiency, costs, quality
e. costs, access, quality

9.

Which of the following accounts for the greatest amount of health care spending?
a. Public health
b. Physician services
c. Prescription drugs
d. Nursing home care
e. Hospital services

10.

_______ is the largest source of health care funds in the U.S.

a. Out-of-pocket
b. Medicaid
c. Medicare
d. Private health insurance
e. Workers compensation

11.

Physicians are a scarce resource in health care markets.

a. True
b. False

2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part,
except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use.
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Santerre/Neun 6e Chapter 1 Test Bank

12.

Opportunity costs only occur when there is government involvement in markets such as health
care.
a. True
b. False

13.

All points along the production possibilities frontier maximize equity.

a. True
b. False

14.

Since 1975, the uninsurance rate in the U.S. has increased.

a. True
b. False

15.

Among developed countries, the U.S. has the lowest infant mortality rate.
a. True
b. False
Answers:
1. b

11. a

2. a

12. b

3. e

13. b

4. b

14. a

5. d

15. b

6. a
7. d
8. e
9. e
10. d

2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part,
except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use.
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