Deck 2: Basic Clinical Health Care Economics

Question 1

The study of economics is based on three premises. Which of the following statements describes one of those premises?

A) abundance of resources
B) consumers' inability to pay
C) scarcity of resources
D) consumers' ability to pay

Answer 1

scarcity of resources

Question 2

When demand is low and supply is high, the price of the product and/or service can decrease.

Answer 2

True

Question 3

Which strategy is included in financial reform for health care in Canada?

A) de-insuring certain services
B) introducing co-payments
C) charging some user fees
D) extending the use of fee-for-service to other providers

Answer 3

de-insuring certain services

Question 4

The study of clinical health care economics is based on the premise that, in the clinical environment,

A) consumers have choices over the resources they need, receive, and use.
B) money is plentiful and resources are finite.
C) money is scarce and resources are infinite.
D) money and resources are scarce, and cost-effective decisions have to be made.

Question 5

When demand is high and supply is low, the price of the product and/or service will increase.

Question 6

Which of the following is the term for the way in which provinces and territories pay their physician health care providers?

A) physician remuneration
B) fee-for-service
C) the delivery function
D) the funding function

Question 7

Provinces that are considered less wealthy than their neighbouring provinces can qualify to receive equalization payments. The nurse knows that the equalization payments are paid out to the less wealthy provinces by the

A) provincial and territorial governments.
B) federal government.
C) provincial government.
D) territorial government.

Question 8

Often, health care prices for services and/or treatments are considered

A) "more" elastic and variable with reference to price than consumer goods.
B) "less" elastic and variable with reference to price than consumer goods.
C) low in price when services are abundant.
D) high in price when services are scarce.

Question 9

To which of the following does the term P3 refer?

A) public-private partnerships
B) for-profit services
C) out-of-pocket payments
D) private insurance through the big three insurers

Question 10

In health care, a traditional market economy model does not apply. Which of the following statements does NOT describe a main concept related to clinical health care economics?

A) The buyer is a doctor or nurse who orders the treatment/service.
B) The provider or recipient of the treatment/service is not the buyer or payer.
C) The actual payer is a third-party reimburser, such as the government and/or insurance company.
D) Price is important to buyers and sellers.

Question 11

When prices for a product and/or service are high, demand for this product/service may increase.

Question 12

Which of the following statements best describes a comparison of the health care systems in Canada and the United States (U.S.) 40 years ago?

A) The U.S. relied on government programs; Canada relied on private insurance.
B) Canada had universal health care; the U.S. relied on charity.
C) No significant difference existed between the two systems.
D) Both Canada and the U.S. had publicly financed health insurance.

Question 13

Which of the following is a major federal government report that was commissioned to examine the quality, cost, and future of health care in Canada?

A) Fyke Report
B) Mazankowski Report
C) Clair Report
D) Romanow Report

Question 14

Which of these systems has replaced in-house costing in many Canadian hospitals?

A) case-costing
B) resource benchmarking
C) resource intensity weights (RIWs)
D) activity-based costing (ABC)

Question 15

Financing of the health care system in Canada is done through the collection of government tax monies. Which one of the following options identifies how these monies are collected in Canada?

A) by provincial and territorial sales tax only
B) by personal income and business taxes only
C) by personal income tax and federal and provincial sales tax
D) by federal and provincial sales tax only

Question 16

What percentage of Canada's Gross Domestic Product (GDP) was spent on health care in 2010?

A) 2 percent
B) 5 percent
C) 12 percent
D) 25 percent

Question 17

What is the term for the price that a consumer is willing to pay for a service or product?

A) cost price
B) buyer price
C) payer price
D) price elasticity

Question 18

Which of these terms do citizen involvement, accreditation, credentialing, and complaints procedures exemplify?

A) performance indicators
B) stakeholder involvement
C) accountability processes
D) managerial functions

Question 19

Which one of the following statements does NOT apply to the main concepts of a traditional market economy?

A) Sellers sell services and/or products to buyers.
B) Buyers pay sellers for services and/or products.
C) Buyers and sellers try to maximize profits and/or get the most for their money.
D) Price is not important to buyers and sellers.

Question 20

The purpose of analyzing records of what transpires in hospitals is to practice financial stewardship and determine whether it is, in fact, doing good or producing "mischievous outcomes." Which one of the following authors made this comment?

A) Laura Nosek
B) Ida Androwich
C) Patricia Kelly
D) Florence Nightingale

Question 21

Which one of the following statements best defines how a "culture of accountability" in health care is created? A "culture of accountability" in health care is created when all

A) health care providers and their employers are committed to excellence.
B) stakeholders are held accountable to their performance and improving the quality of client care and services in the workplace.
C) health care providers, stakeholders, and organizations work together to create change and minimize costs.
D) stakeholders look at ways to cut costs and improve the quality of client care.

Question 22

The second largest proportion of health care expenditures in Canada is related to physician remuneration. From the four models below, identify the predominant remuneration model that exists for physicians in Canada today.

A) salary model
B) blended payment model
C) fee-for-service model
D) capitation model

Question 23

Which of these is the term for unselfish concern for the welfare of others?

A) ethics
B) altruism
C) egoism
D) paternalism

Question 24

Which one of these statements best defines the function of "financing" in relation to the health care system in Canada?

A) private insurance coverage
B) sales taxes
C) how health care is paid for
D) equalization payments
Indicate one or more answer choices that best complete the statement or answer the question.

Question 25

The provincial health care index is focused on measuring and reporting the best value for health care monies spent in Canada and in the individual provinces. Which statement best describes how this is measured? The nurse knows that, in order to measure overall cost and value for money,

A) a comparison of health care services and health expenditures related to those services is done for each province.
B) a comparison of per-capita cost of provincial health care to the per-capita availability of, use of, access to, and clinical performance of, medical goods and services in each province is done.
C) a list and index is made of health care services that are available and used.
D) a list and index is made of the health care expenditures paid out for services used.

Question 26

Through which of these mechanisms do most health regions and hospitals receive funding from their provincial government?

A) a needs-based funding formula
B) a program budgeting and marginal analysis (PBMA)
C) a global budget
D) program budgets

Question 27

Which of the following is the main strategy associated with discussions about reform in health care delivery?

A) increasing the reliance on private insurance
B) changing the taxed-based funding arrangement
C) privatizing health care delivery
D) implementing user fees

Question 28

Finance monies that are collected for Canada's health care system are distributed to the provinces and territories in the forms of payments from the

A) federal government to the provincial and territorial governments.
B) provincial and territorial governments to the federal government.
C) territorial government to the federal government.
D) federal government to the territorial government.

Question 29

Which of these statements best describes the outcome of health reform strategies such as the restructuring, outsourcing, right-sizing, and merging seen in the past 20 years?

A) Costs are no longer a major concern.
B) Many costs have been reduced.
C) Costs have been contained.
D) The overall cost of health care continues to grow.

Question 30

Nurses today can contribute to quality outcomes and participate in cost savings measures in their clinical work areas. Which statement best describes the role of the nurse in demonstrating this? The nurse

A) will take responsibility of financial stewardship and budgeting.
B) will be aware and involved in making appropriate choices related to scarce resources.
C) will do what is financially right in the workplace setting.
D) will be aware of clients' needs and the expenses related to them.

Question 31

Which of the following factors is NOT expected to contribute to the growing cost of health care?

A) increasing rates of debilitating diseases associated with aging
B) increased use of expensive technology
C) emergence of new infectious diseases
D) expanded roles for nurses