A medical arms race is a situation where hospitals compete w

A medical arms race

is a situation where hospitals compete with each other

leads to lower prices of services

leads to higher prices of services

a and c

a and b

3 points

Question 2

Treating a patient who goes into the emergency room in any hospital in the USA

is voluntary

is mandatory by law

is only encouraged but not required

a and c

none of the above

3 points

Question 3

Anton Sigur goes inside the gas station and asks the storekeeper \" which one would you prefer?

(1) cash for $10 or

(2) playing a game where one can win $100 but with only a 10% probability? (only other option is getting $0)

If the storekeeper is a risk-loving individual, he most likely will prefer

he is indifferent between both

1

2

none of the above

3 points

Question 4

If the storekeeper is risk-averse, he will prefer

will be indifferent between both

1

2

none of the above

3 points

Question 5

If the storekeeper is risk-neutral he will prefer

will be indifferent between both choices

1

2

none of the above

3 points

Question 6

If probability of getting sick is 30% and if healthy income is $30,000 and this income DROPS BY 20% if this individual gets sick, then expected income is equal to:

$28,200

$13,800

$24,000

$7,200

none of the above

3 points

Question 7

A patient gos under the knife and will either die right after surgery, survive for 1 year, or survive for 2 more years. Assume that the probability of surviving for a year is 50% and surviving for 2 years in 30%, what is the probability of dying?

80%

20%

50%

cannot tell

3 points

Question 8

Which of the following hospital-doctor arrangement leads to the least expected loyalty of doctors to the hospital?

workbench arrangement

doctor employed by a government hospital

doctor-owned

none of the above

3 points

Question 9

As an individual derives more wealth, total utility from additional income will ___________ and the marginal utility will ___________.

increase; increase

increase; decrease

decrease; increase

decrease; decrease

3 points

Question 10

Insured individuals getting medical treatment from hospitals especially those with insurance policies from large companies will pay a percentage (coinsurance rate) based on

the list price of the medical service

\"negotiated\" price (between hospital and insurance company) of the medical service

\"negotiated\" price (between hospital A and hospital B) of the medical service

\"negotiated\" price (between insurance company A and insurance company B) of the medical service

3 points

Question 11

A patient goes under the knife and will either die right after surgery, survive for 1 year, or survive for 2 more years. Assume that the probability of surviving for a year is 50% and surviving for 2 years in 30%,

what is the EXPECTED number of years that this person is expected to live after surgery?

1.1 years

2 years

0.6 of a year

half a year

none of the above

3 points (Extra Credit)

Question 12

If the storeowner in question number 3 is a risk averse individual then which of the following is true?

E(I) from choice 1 = E(I) from choice 2

and his

utility from choice 1 < utility from choice 2

E(I) from choice 1 > E(I) from choice 2

and his

utility from choice 1 > utility from choice 2

E(I) from choice 1 = E(I) from choice 2

and his

utility from choice 1 > utility from choice 2

E(I) from choice 1 < E(I) from choice 2

and his

utility from choice 1 < utility from choice 2

none of the above

	a.	is a situation where hospitals compete with each other
	b.	leads to lower prices of services
	c.	leads to higher prices of services
	d.	a and c
	e.	a and b

Solution

Q1. a.

Q2. b

Q3. a.

Q4. a.

Q5. a.

The tutor can\'t answer a dozen questions under a single question.