1.

A CEA measures health outcomes in physical units

(e.g., quality-adjusted life years).
True

False

Answer is:T
2. If a CEA for a program expansion proves not to be cost
effective, decision makers should remove the program
from their list of possible investment choices.
True

False

Answer is :F
3. There are three basic types of economic evaluation
methodology: (1) cost-effectiveness analysis (CEA); (2)
________; and (3) cost-benefit analysis (CBA) . What is
the missing type? Select the correct answer from from
the list below.
A. insurance benefits analysis

B. technical efficiency analyses

C. clinical efficiency analysis

D. allocative efficiency analysis

E. cost-utility analysis (CUA)

Answer:E
4. Cost-effectiveness analysis (CEA) can sometimes be
used to provide limited information on ______ through a
ratio of extra cost to extra benefit produced

(incremental cost-efficiency analysis). (Select the

correct phrase from the following list).
A. insurance benefits
B. technical analyses
C. technical efficiency
D. allocative efficiency
E. peer review
Answer: D
5.
a
b
c

Which is correct?
Non-human value is not included in a benefit-cost analysis.
Existence value is not included in a benefit-cost analysis.
Both non-human value and existence value are not included in
a benefit-cost analysis.
d Both non-human value and existence value are included in a
benefit-cost analysis.

6. How does inclusion of option value, discovery value

and non-use value to the current use value of
resources affect decisions on utilization of resources?
a It encourages conservation of resources.
b It discourages conservation of resources.
c It has no effect on utilization of resources.
d It has uncertain effect on conservation of resources.

7. Cost-utility analysis relates ____ to a multidimensional

measure of effectiveness which takes into account the
valuation of benefits; i.e., a measure of utility.
A. costs
B. allocative efficiency
C. technical efficiency
D. economic data
E. peer review

8. Are either or both of the following statements correct

or incorrect? (Select the best answer).
A. As a general rule cost effectiveness analysis and cost
utility analysis require only health care costs to be
collected.
B. Cost benefit analysis requires all costs and benefits to
be collected, no matter on whom they fall.
A. Statement A: yes (A is incorrect)
B. Statement A: no (A is correct)
C. Statement B: no (B is correct)
D. Statement B: yes (B is incorrect)
E. Both statement A and statement B are correct
F. Both statement A and statement B are incorrect

9. Costutility analysis is:

a. A form of costeffectiveness analysis to calculate the cost per
unit of utility (units that relate to a persons well-being).
b. One of a number of techniques of economic evaluation, where
the choice of technique depends on the nature of the benefits
specified
c. is a systematic approach to estimating the strengths and
weaknesses of alternatives that satisfy transactions, activities
or functional requirements for a business.
d. a tool used in pharmacoeconomics and is applied when
comparing multiple drugs of equal efficacy and equal
tolerability.

10.
In DALY :
a The quality of life is assessed by experts.
b The quality of life is assessed by potential or actual patients.
c

a+b

d None of the above

Q1) Health spending from GDP in Low income countries is:

1- 5%
2- 6%
3- 2.1%
4- 10%
Answer: 3
Q2) An example of middle income countries is:
1- Thailand
2- Malaysia
3-

Sri Lanka

4-

Philippines

Answer: 2

Q3) Health maintenance organization (HMO) is a type of health insurance;

some people don't feel comfortable with this type of health insurance or don't
choose it, why:
1. They usually feature high deductibles.
2. There are typically some restrictions for coverage such as allowing only
certain tests or treatments, but no restrictions for number of visits.
3. If you need emergency care and you are outside the network, your care is
not covered at all.
4. HMO plans limit the freedom of choosing your health care providers.
Answer: 4
Q4) What is the health insurance system used in UK?

1. Out of pocketb
2. Biverge.
3. National
4. bismark
Answer: 2
Q5) In Beveridge Model of Health Insurance doctors are nearly never sued for
malpractice, why is that?
1- Because they receive free education with low salaries
2- They are governmental employees
3- They are paid by contracts with the government
4- Patients are free to choose their doctors, it's their responsibility
Answer: 1
Q6) Regarding the governmental health insurance in Palestine, one of the

following is incorrect:
1- GHI is considered a mixed insurance type
2- The insured household includes Wife, husband, children <18, students
below 26, parents > 60
3- GHI is exclusively compulsory

4- People diagnosed with cancer are covered by GHI for free

5- GHI model suffers from unfavorable selection as one of the most alarming
limitations which needs wise recommendations
Answer: 3
Q7) a type of insurance policy where the insured pays a specified amount of
out_of_pocket expenses for health care services at the time the service is
rendered while the insurer paying the remaining cost is:
1- Co-payment
2- Deductible
3- Co-insurance
4- Premium
Answer: 1

Q8) the main financing source in the social health insurance system (Bismarck
model) is:
1-General taxations
2-External aids
3- Employee and employer payroll contributions.
4- out of pocket.
Answer: 3
Q9) the collection and management of financial resources so that large
unpredictable individual financial risks become predictable and are distributed
among all members is:
1- Pooling resources.
2- Purchasing service.
3- Collecting revenues.
4- Provision of services.
Answer: 1

Question 1:
As countries move to different stages of the income spectrum, their health financing
profiles transition as well. As countries economies improve, government revenues
tend to increase and the out-of-pocket share tend to ..
A) Increase, increase.
B) Increase, decrease.
C) Decrease, increase.
D) Decrease, decrease.
Answer is B

Question 2:
In relation to health care financing mechanisms, all of the following are true except:
A) National health service systems and social insurance schemes are characterized by
public financing.
B) Social insurance schemes and private insurance schemes both provide less than full
scope of benefits.
C) Social insurance schemes and private insurance schemes both provide partial coverage
of the population.
D) Social insurance is compulsory, whereas private insurance is voluntary.
Answer is B

Question 3:

Which of the following forms the main source of health financing in France:
A. Voluntary health insurance
B. Statutory health insurance
C. Out of pocket payment
D. All of the above
Answer is B

Question 4:
All of the following are true regarding the low income countries except:
A) Mix taxes are the main source of revenue collection.
B) Presence of social health insurance systems which cover most of the population.
C) Out-of-pocket payments exacerbate inequality between providers and patients.
D) Despite all challenges they face, the domestic sources of revenues are enough to
provide the unlimited needs.
Answer is C

Question 5:
Possible actions to overcome the problem of low tax- or revenue-base for domestic
fund in low income countries include all except:
A) Increase collection of taxes or contributions to health insurance through increased
rates.
B) Increase collection of taxes or contributions to health insurance through more efficient
collection.
C) Make better use of new and existing resources including reducing inefficiency.
D) None is wrong. All are possible actions.
Answer is A

1.Which of the following is true about equity and equality

a. Equity is sameness , wherease Equality is fairness
b. Equality is sameness , wherease Equity is fairness
c. There is no difference between equity and equality
Answer : b

2.The idea that people in equal conditions should pay equal taxes is referred to as:
a. horizontal equity.
b. vertical equity.
c. the ability-to-pay principle.
d. the marriage tax.
Answer : a

3.Vertical equity in taxation refers to the idea that people

a.
b.
c.
d.

in unequal conditions should be treated differently.

in equal conditions should pay equal taxes.
should pay taxes based on the benefits they receive from the government.
should pay a proportional tax rather than a progressive tax.
Answer : a

4.Which one of the factors that affect equity ?

a.
b.
c.
d.

Income
education
Environment
All of the above
Answer : d

5.On the section ( health equity: the role of health care professionals) : How can Health care
professionals act as advocates for achieving health equity?
a. Individual health professionals can't induce local/national policy change .
b. Social determinants of health should not be considered while evaluating patients.
c. Health care professional has to act as an advocate for the patient and his family.
d. Less focus on the social determinants of health will help improve achieving health
equity.
Answer is c : Health care professional has at all times to work as an advocate for his
patient and his family

6.health care services in Palestine are provided mainly by

a.

The Ministry of health

b. a group of Palestinian nongovernmental organization (PNGOs)

c.

the UnitedNations Relief and Welfare Agency (UNRWA)

d. the Private sector

e.

all of the above

Answer : e

7. Universal Coverage of Health means:

a. to have all medical services, including periodic screenings , in any place of the country
b. to have a global insurance, covers you outside your country
c. to have the same quality of medical services as developed countries have
d. every individual in the country has the right to use the health services regardless of his
income level, ethnicity, social status or residency
e. being able to use the medical service without paying at all
Answer : d

1)Which of the following is considered as an indirect cost:

A. Drugs
B. Time of production
C. Side effects
D. Pain
Answer: B
2)In quantifying the impact of technology change on
health expenditure, a method called Proxy approach is
used. Which of the following is the most reliable to be
used as proxy:
A. Life expectancy
B. Research and development
C. Infant mortality
D. Percentage of population older than 65 years
Answer : B
3)All of the following factors affect the supply of medical technology
except:
A. Continuous improvements made on the new technology after its
introduction.
B. The development of complementary inputs such as user skills and
education in the way of using this technology.
C. Income and insurance.
D. Lowering in cost of these services with time.
Answer: C
4)Concerning demand which one is false:

A. Health insurance encourage demand on medical

advances.
B. Wealthier societies have greater demand
C. Larger hospitals require more medical advances than
small one
D. It is only driven by patient and his desires
Answer: D
5) In quantifying the impact of technology change on
health expenditure, a method called Residual approach
is used. Regarding to residual approach, which of the
following statement is true:
A. Studies that undergo for same period and country and
take same determinants must have same residual.
B. Impact of medical technology on health expenditure has
no correlation with policy
C. It's indirect method based on taking an indicator that
must be representative to health expenditure
D. It does not give information for the impact of single
technology used in specific circumstances
Answer : D
1-fisherman is an example of which sector?
1) Primary 2) secondary 3)tertiary 4) health economics
2-All of the following is true about health care except?
1)Is prevention, treatment and management of illness
2)It contains doctors, nurses and specialities
3)Health care is a part of health economics
4)Ther is no growing and larging in health care around the
world.
3-market failure occure when all of this except :
1)asymetrical information
2)externalities
3)imperfect knowledge
4)public goods
5)non of the above
4-the market failes to allocate :
1) Allocative efficiency
2) Social efficiency
3) Technical efficiency

4) Productive efficiency
5) All of the above
5- all of the following are examples of negative externalities except:
1)air polution
2)antibiotic use
3)tobacco use
4)information and technology
5)noisy parties
6-puplic goods are
1)exclusive
2)rival in consumption
3)non exclusive
4)If consumed by one cannot be consumed by the other
7 which of the following are mechanisims of economic of scale:
1)bulk volume
2) prevent wastful expentures
3)specialization of the resources
4)all of the above
8- forms of asymmetry information, except:
1)moral hazard
2)price discrimination
3)adverse selection
4)monopoly form
9-all of the following are requirements for a perfectly competitive
market except :
1) both buyers and sellers are price takers .
2) There are barriers to Entry .
3)all the firms products are identical .
4) there is compete information .

1- One of the following is not a characteristic of Medical

market:
A- Uncertainty.
B- Regular demand.
C- Heterogeneous products.
D- Asymmetry of information.
Answer: B

2- Which of the following approaches -that provides the

payment to doctors by third party insurers- include no
direct relationship between doctors and third party
insurers?
A- Integrated approach
B- contractual approach
C- reimbursement approach
D- none of the above answer
Answer: C
3- Lack of consumer sovereignty can be caused by all of
the following except :
A-Uncertainty
B- Information gap
C- Market power
D-Perfect competition
Answer: D

4- Imperfect Agency generates the need for:

A- Ethical code
B- Effective monitoring
C- Incentives for the doctors
D- All of the above
Answer: D
5- Which of the following is true?

A - There is no difference btw supply and supplier induced

demand
B- Supply induced demand includes the agents only
C- Supplier induced demand includes the agents only
D - Supply induced demand includes medical services
only.
Answer: C

1- HEALTH CARE MARKETS MAY BE INEFFICIENT BECAUSE OF

(A) POOR

INFORMATION

(B) ADVERSE
(C) MORAL

SELECTION .

HAZARD .

( D)

ALL OF THE ABOVE .

(E)

NONE OF THE ABOVE

2- ADVERSE SELECTION OCCURS WHEN THERE IS

(A)

FULL INFORMATION .

(B)

UNOBSERVED BEHAVIOR .

(C)

AN UNOBSERVED CHARACTERISTIC .

(D)

A WORKER WHO SHIRKS BECAUSE HIS BOSS DOES NOT WATCH

HIM.

3- THE PAYMENT THAT YOU MUST MAKE TO YOUR HEALTHCARE

PROVIDER BEFORE YOUR INSURANCE COMPANY WILL START
PAYING FOR SERVICES IS CALLED THE

(A)

COPAYMENT .

(B)

EXCLUSION .

(C)

DEDUCTIBLE .

(D)

COINSURANCE .

4-THE PAYMENT OF A SET FEE FOR EACH OFFICE VISIT IS CALLED

A ( N)
(A)

COPAYMENT .

(B)

EXCLUSION .

(C)

DEDUCTIBLE .

(D)

COINSURANCE .

5-A SITUATION IN WHICH A BUYER AND A SELLER POSSESS

DIFFERENT INFORMATION ABOUT A TRANSACTION IS CALLED :

(A) ADVERSE
(B) MORAL

SELECTION

HAZARD

(C) ASYMMETRIC
( D)

INFORMATION

MARKET SIGNALING

6-INSURANCE MARKETS FREQUENTLY HAVE A PROBLEM WITH

POOR RISKS GETTING INSURED WHILE GOOD RISKS NOT GETTING
INSURED .

THIS PROBLEM IS ASSOCIATED WITH:

(A) ADVERSE
(B) MORAL

SELECTION

HAZARD

(C) ASYMMETRIC
( D)

INFORMATION

MARKET SIGNALING

7- INSURANCE MARKETS HAVE A PROBLEM WITH PEOPLE WHO

BUY INSURANCE AND THEN PROCEED TO BEHAVE IN RECKLESS
WAYS , OR AT LEAST TAKE LESS CARE TO AVOID LOSSES AFTER
BEING INSURED .

(A) ADVERSE
(B) MORAL

SELECTION

HAZARD

(C) ASYMMETRIC
( D)

THIS BEHAVIOR IS ASSOCIATED WITH:

INFORMATION

MARKET SIGNALING

8- HOW COULD A CERTAIN SYSTEM GETS OVERLAPPING RISK

POOLS ?

(A) MINOR

AND HIGHER COST RISKS HAVE BEEN SEPARATED AND

FINANCED THROUGH DIFFERENT MECHANISMS

(B) HEALTH

CARE COSTS ASSOCIATED WITH PARTICULAR

CONDITIONS ( SUCH AS MENTAL ILLNESS OR END STAGE RENAL FAILURE )

ARE CURVED OUT OF REGULAR RISK POOLS AND PLACED IN A
CONDITION -SPECIFIC RISK POOLS .

(C) A

LOW -LEVEL POOL SHARES THE COSTS OF CERTAIN ELEMENTS OF

HEALTH CARE WITH A HIGHER LEVEL POOL .

(D) B+C
(E) ALL

OF THE ABOVE ANSWERS ARE TRUE.

9-What types of risk pooling are used in Low

income countries ?
(A)Unitary
(B)Fragmented
(C)Integrated
(D)Partial
(E)B+C

10-What is the best size of a risk pool?

(A) Multiple small highly specialized risk pools
(B) One or two large risk pools cover the whole
population and have the whole budget
(C) The optimal size of a risk pool is with a population
count when the system performance is at the top
point.
(D)no one preferable size.

11- Variation in the benefi t package for a defi nite

risk pool takes the form of :
(A) Prohibition of certain drug or treatment procedure
(B) Poorer quality or facilities
(C) Reduction in patient's choices

(D) All of the above

12- Excessive consumption of health services

occur more with which of the following approaches
of risk pooling:
(A) When there is no risk pooling.
(B) Unitary risk pooling.
(C) Fragment risk pooling.
(D) All of the above.

13- When people behave in ways that involve

increased risk because they have insurance, this is
known as:
(A) adverse selection.
(B) )moral hazard.
(C) asymmetric information.
(D) none of the above

14- Health care markets may be ineffi cient

because of
(A) poor information
(B) adverse selection.
(C) moral hazard.
(D) )all of the above.
(E) none of the above

15- Life insurance companies often give applicants

a physical examination to prevent
(A) the person from dying before obtaining the policy.
(B) signaling.
(C) adverse selection.
(D) profi t maximization.

16- A form of market failure that arises when

products of diff erent qualities are sold at a single

price is called
A.Adverse selection
b. Moral hazard
c. Asymmetric information
d. market signaling