Reference no: EM132244624
1. When a physician knows more about alternative treatments than her patients, we say that _______ exists
A. rational ignorance.
B. perfect information.
C. asymmetric information.
D. moral hazard.
E. adverse selection.
2. The optimal level of output may be defined as that level of output where
A. average benefit exceeds average cost by the greatest amount.
B. total benefit equals total cost.
C. marginal benefit exceeds marginal cost by the greatest amount.
D. the marginal benefit of the last unit purchased equals its marginal cost.
E. it is impossible to define optimal in any meaningful way.
3. The intangible costs associated with reduced quality of life include
A. Pain and suffering
B. Lost productivity at work
C. The cost of home modeling to accommodate a physical handicap
D. Potential income lost due to premature death
E. All of the above intangible costs
4. Which of the following would likely lead to the greatest improvement in health status of the population in the United States?
A. Higher per capita incomes.
B. More spending on public health, such as improved water supply and sanitation.
C. More medical care spending overall.
D. Improved lifestyles, including reductions in the use of tobacco, alcohol, and drugs.
E. More rural hospitals.
5. Which of the measures of effectiveness is not a surrogate measure?
A. Cholesterol level
B. Blood pressure
C. Tumor size
D. Hip fracture
E. Bone-mass density (BMD)