PubH 6466 - PS1 - questions

PubH 6466 Health Financing in Low- and Middle-Income Countries Spring 2024 Problem Set 1 Due Date: Submitted on Blackboard by Thursday, February 1, 6:00p ET Proportion of course grade : 10% Instructions: Please submit all responses via the Blackboard assignment/test interface. Please do not include your name in any aspect of your submission as we will be using anonymous grading. You may discuss the problem set with other students in the course. Each student is responsible for submitting their own work in their own words. If you copy another student’s assignment or let someone else copy yours, you are both cheating. For feedback purposes, please keep track of the total time you spend on the assignment (including any independent work, discussions with classmates, completing on Blackboard, etc.) as you will be asked to enter it at the end of the submission. Note: Blackboard will present the answer options for each question in a random order, so be sure to check that the answer you select matches what you intend. Do not simply pick the same letter without ensuring the content of the answer is correct. 1. Which of the following is not a feature of ordinary markets? a. Many sellers b. Consumers have varying tastes and preferences c. Consumers are uncertain about the quality of the good or service d. Many buyers 2. Which of the following is not a health market imperfection? a. Consumers hold an asymmetric information advantage b. Need is unequally distributed among consumers c. Consumers can judge the quality of providers’ customer service d. It is hard for consumers to “shop around” 3. When the cost of labor needed to produce a service rises, which of the following results? a. The supply curve shifts left and the equilibrium price rises and the equilibrium quantity falls b. The demand curve shifts right and the equilibrium price rises and equilibrium quantity falls c. The supply curve shifts left and the equilibrium price and equilibrium quantity both rise d. The demand curve shifts to the left and the equilibrium price falls and equilibrium quantity rises 1

4. Market failure in health markets: a. Means that supply and demand analysis does not apply b. Is the result of high costs c. Must be addressed by interventions to produce desired results d. Requires a government takeover 5. Health spending in Jasmania in 2010 was 1 billion Won (local currency units) and was 2 billion Won in 2020. Jasmania’s population grew from 10 million in 2010 to 12.5 million in 2020. By how much did per capita health spending increase between 2010 and 2020? a. 100 Won b. 80 Won c. 60 Won d. 58.5 Won 6. Inflation in Ralandia was up and down between 2010 and 2020, but the total increase in prices over the 2010-2020 period was 40 percent. Health spending per capita in Ralandia was 200 Ariary (Ralandia's currency) in 2010 and rose to 280 Ariary in 2020. What was the “real” increase in health spending per capita between 2010 and 2020 in Ralandia? a. 0 Ariary b. 80 Ariary c. 40 Ariary d. 20 Ariary 7. Which of the following is not a macroeconomic benefit of health? a. Increased well-being of the population b. Higher profits for hospitals c. Greater labor productivity d. More effective education of children 8. The Preston Curve shows all but which of the following? a. Additional per capita income is associated with longer life expectancy b. Each additional unit of per capita income tends to produce longer life expectancy, but at a diminishing rate c. Inequality of health spending across countries d. Imperfect correlation between per capita income and life expectancy 9. The World Bank’s 1993 World Development Report: a. Was the founding document of health economics for low- and middle-income countries b. Won the Nobel Prize in Economics for its authors c. Was the first time the World Bank made health its annual theme d. Introduced the Universal Health Coverage “cube” 10. Which of the following best illustrates the concept of opportunity cost? a. High profits in a market are an opportunity for new sellers to enter b. A poor mother with a fever diagnosed as malaria must choose whether to buy the medication prescribed or hope the malaria goes away so that she can buy rice to feed her family for the next few days c. Better health services are an opportunity for countries to advance economically d. The cost of medications grows for most LMICs when their exchange rate is devalued 2