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QUESTION 1
Compared to fee-for-service payment, what are the advantages and disadvantages of payment based on diagnosis-related groups?
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10 points
QUESTION 2
What is Medigap insurance? How does the existence of Medigap policies affect the cost of providing medical services to the elderly? Was Mark Pauly correct when he observed that the provision of some insurance might be suboptimal? (See “The Economics of Moral Hazard: Comment,” American Economic Review 58(2), June 1968, 531–538.)
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10 points
QUESTION 3
If members of a society have transitive preferences, then that society as a whole must also have transitive preferences.
True
False
2 points
QUESTION 4
The goal of health policy is to maximize health, wealth, and equity.
True
False
2 points
QUESTION 5
Health systems focused on promoting equity typically have purely private insurance markets.
True
False
2 points
QUESTION 6
Insurance mandates do little to combat the problem of adverse selection.
True
False
2 points
QUESTION 7
Cost-sharing is used to combat moral hazard at the expense of equity.
True
False
2 points
QUESTION 8
Queues can help to equitably reduce moral hazard.
True
False
2 points
QUESTION 9
Prospective payment systems align the interests of doctors and their patients.
True
False
2 points
QUESTION 10
There is no such thing as “too much competition” in the private hospital market.
True
False
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