3.Which of the following statements is FALSE concerning comparative effectiveness research?

a)

The objective is to improve health outcomes by developing and disseminating evidence-based information to patients and providers.

b)

Using clinical trials is the least costly and less time-consuming method for conducting comparative effectiveness research

c)

The Patient Centered Outcome Research Institute (PCORI) was created under the Affordable Care Act (PPACA) to conduct comparative effectiveness research

d)

Using comparative effectiveness research to reduce costs and make coverage decisions can be controversial.

4.Which of the following is a correct statement?

a)

Both purely competitive and monopolistic firms are “price takers.”

b)

Both purely competitive firms and monopolistic firms are “price makers”

c)

A purely competitive firm is a “price-taker” and a monopolistic firm is a “price-maker”

d)

A purely competitive firm is a “price-maker” and a monopolistic firm is a “price-taker”

8.The individual mandate under the Affordable Care Act was intended to prevent which of the following?

a)

Rising health care costs

b)

Rising deficits

c)

Adverse selection

d)

Moral hazard

9.Which of the following conditions is NOT NECESSARY in order for a firm to price discriminate?

a)

The product cannot be resold

b)

The firm must have some market power

c)

The firm must have many buyers and sellers

d)

The market can be segmented into different groups of consumers

10.Which of the following statements correctly identifies increasing returns in production?

a)

As a firm adds workers, output declines

b)

Marginal Product is greater than Average Product

c)

Marginal Product equals Average Product

d)

As firms increase workers, output increases at a diminishing rate

14.Which of the following is NOT a factor that leads to a shift in the supply curve?

a)

Change in labor and capital inputs

b)

Change in consumer income

c)

Change in number of firms in industry

d)

Government regulations

18. What market failure does the regulation of nursing home quality address?

High long-term care costs

Existence of a public good

Asymmetric Information

All of the above

9.Which if the following is NOT a likely result of limits on physician reimbursement rates under Medicare?

Reduction in quality of care provided

Access problems for Medicare beneficiaries

Increase in supply of physicians

Shortage of physicians