Deck 4: The Production of Health: the Impact of Medical Services on Health

Question 1

In the graph above, point A is

A)Technically efficient
B)Economically efficient
C)Both a and b
D)Neither a nor b

Answer 1

A
The Point A sits on a higher isocost curve, therefore, it costs more to produce at this input combination. Yet, point A is technically efficient as it lies along the isoquant line.

Question 2

In the Thorton study of mortality and Medical expenditures,which of the following had the smallest effect on mortality?

A)Smoking
B)Education
C)Crime in the city
D)Medical expenditures

Answer 2

D
Both in Thorton and Auster et.al,medical expenditures were found to have the smallest affect on mortality.

Question 3

According to Victor Fuchs' research on infant mortality,the reduction of infant mortality between 1900 and 1930 following events,except

A)Chlorination of water
B)Increased literacy
C)Decreased birthrate
D)Pasteurization of milk
E)Medical care

Answer 3

E
Health care in the form of public health innovations,such as chlorination of water,did aid in the reduction of infant mortality,but medical care did not.

Question 4

To allocate resources efficiently,one should consider

A)The relative size of each program
B)The marginal product of each program
C)The average product of each program
D)The level of need in each program

Question 5

Mr.Fernandez lives the first 35 years of his life in perfect health.At age 35 he develops anxiety but has no other problems until age 60 when he develops angina.At age 63 he has angioplasty which to relieve the chest pain,and apart from the anxiety,he has no other health complaints.On his 70th birthday,he is involved in a car accident and dies.How many quality-adjusted life years (QALYs)did he have?

Question 6

Compare cost-utility analysis to cost-effective analysis.

Question 7

The cost-effectiveness of the H1N1 influenza vaccination was presented in a study in the October 5,2009,issue of the Annals of Medicine.In this study,authors use outside sources to estimate the probable benefits and cost of the influenza vaccine and find the following:
-The cost of vaccination (including lost work time)is $35.
-The cost of influenza illness (including lost work time)is $313.
-Influenza vaccination reduces the probability of getting influenza from 0.67 to 0.25.
Perform a cost-benefit analysis of influenza vaccination.Does it favor vaccination?

Question 8

In the Rand Health Insurance Experiment,which group had a statistically better improvement in health?

A)Full coverage group
B)50% coverage group
C)25% coverage group
D)There was no difference between groups.

Question 9

What is the opportunity cost of gym visits to hospital visits when moving from point A to point B?

A)20 gym visits
B).05 gym visits
C)40 gym visits
D).025 gym visits

Question 10

A hospital is considering hiring either a physician anesthetist or a nurse anesthetist.The cost of a physician anesthetist is $200,000,but their marginal product is 50 procedures per day.The cost of a nurse anesthetist is $100,000,but their marginal product is 30 procedures per day.Who do you hire and why?

Question 11

Below is an evaluation of two programs using inpatient days
What is the level of production in each program

A)200 inpatient days in Program 1;40 inpatient days in Program 2
B)200 inpatient days in Program 1;100 inpatient days in Program 2
C)4000 inpatient days in Program 1;40 inpatient days in Program 2
D)4000 inpatient days in Program 1;100 inpatient days in Program 2

Question 12

Between 1968 and 1976,medical intervention accounted for

A)More than 60% of the decline in ischemic heart disease mortality
B)Between 40 and 60% of the decline in ischemic heart disease mortality
C)Less than 40% of the decline in ischemic heart disease mortality

Question 13

The number one cause of death in 2007 is

A)Accidents
B)Diabetes
C)Heart disease
D)Cancer

Question 14

A process that determines how many dollars will be returned for dollars invested in a health promotion program is called

A)cost-benefit analysis
B)cost-revenue analysis
C)cost-utility analysis
D)cost-effectiveness analysis

Question 15

In the alcohol study by Carpenter and Dobkin,the increase in mortality caused by the 21-year-old age restriction on alcohol consumption primarily affects

A)Only new drinkers
B)Only experienced drinkers
C)Only heavy drinkers
D)Both a and b
E)Both a and c

Question 16

The mayor of a large city has a discretionary budget of $400,000 and is concerned with the childhood obesity epidemic.Two of the approaches being considered seem most promising: improved school lunches and mandatory physical education.Medical studies indicate the following results for the two alternatives.The mayor hires you to solve a dispute among members of the school board.A vocal segment of the staff argue that the entire budget be spent on mandatory physical education (saving a total of 175 lives)rather than improving school lunches (saving only 65 lives).What do you recommend? Explain.

Question 17

Suppose a hospital is currently producing 100 inpatient days per day with 20 physicians and 50 nurses.The hospital receives a grant to provide low-cost care.The grant includes funds to double the size of the nursing staff.After the grant,the hospital produces 150 inpatient days per day.What is the marginal product of nurses?

A)0 inpatient days
B)1 inpatient days
C)2 inpatient days
D)3 inpatient days

Question 18

Which of the following is the primary reason for the reduction in neonatal mortality between 1970 and 1988?

A)Legalization of abortion
B)Improved national economy
C)Improved medical interventions
D)None of the above

Question 19

The QALYs (quality adjusted life years)measure of health captures the idea that people may be willing to accept

A)Longer life with better health.
B)Shorter life with better health.
C)Longer life with worse health.
D)Shorter life with worse health.

Question 20

Suppose you are asked to use the standard time trade-off approach to measuring the quality of life and are given the following information.An individual is faced with living the remaining 10 years of her life suffering from severe osteoporosis.She reveals that she would be willing to give up two of those years to live the remaining six in perfect health.What is the utility of one year in the chronic health state relative to perfect health?

A)2
B)8
C)0.2
D)0.8