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Multiple-Choice & True/False

30 Multiple-Choice and True/False questions. Please highlight the correct answer. Once completed submit it as an attachment to the Assignment Link:

1. The insight that both parties must be benefiting if they freely agreed to make a trade is known as the fundamental theorem of exchange. True

2. In a two-party transaction, consumers make up the demand side, while sellers make up the supply side. True

3. A recent study showed that 86% of those who filed for bankruptcy had health insurance. False

4. Demand is a professional determination of the quantity that should be supplied. False

5. To determine how many times an individual will visit the doctor, we look only at that individual’s behavior. This is an example of derived demand. False

6. Cost–benefit analysis (CBA) is a set of techniques for assisting in the making of decisions that translates all relevant concerns into market (dollar) terms. True

7. The appropriate measure of economic cost is opportunity cost. True

8. How much has to be paid for treatment, and how much the treatment is worth, depends on whose perspective a cost–benefit analysis of health care is taking. True

9. The chance that you might become injured or sick is a cost, as is the chance that you might have significant expenses when you have no income. False

10. People’s degree of risk aversion depends to some extent on their income and savings. True

11. With insurance, patients gain by pooling risks to eliminate financial uncertainty and make expensive treatments affordable. True

12. People make medical decisions based solely on the type of insurance coverage they have. False

13. The Medicare RBRVS system was designed to rebalance physicians’ incomes across specialties and to provide more payment for thinking and caring. This system was completely successful. False

14. The…...

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