Chapter 5

Question 1

budget limits

Answer 1

the amount of money available to an individual or organization to spend on a particular good (product) or service.

Question 2

business cycle

Answer 2

a natural, recurring expansion and contraction within business.

Question 3

capitation

Answer 3

a payment system whereby one fee is charged to the client to pay for all services received or needed.

Question 4

cost-benefit analysis

Answer 4

a method of comparing the monetary gains and expenses associated with a health care program or service, including start-up and maintenance costs.

Question 5

cost-effective analysis

Answer 5

compares alternative approaches for achieving the same goals between two or more interventions.

Question 6

cost-utility analysis

Answer 6

a method of determining which program provides the best outcome for the lowest cost.

Question 7

demand

Answer 7

willingness, ability, and desire to purchase a commodity or service.

Question 8

diagnosis-related groups

Answer 8

a client classification scheme that defines 468 illnesses.

Question 9

economic growth

Answer 9

reflects an increase in the output of a nation. Two common measures of economic growth are the gross national product (GNP) and the gross domestic product (GDP).

Question 10

economics

Answer 10

science concerned with the use of resources, including the producing, distributing, and consuming of goods and services.

Question 11

effectiveness

Answer 11

a measure of an organization’s performance as compared with its philosophy, goals, and objectives.

Question 12

efficacy

Answer 12

the process of meeting goals in a way that minimizes costs and maximizes benefits.

Question 13

enabling

Answer 13

the act of shielding or preventing the addict from experiencing the consequences of the addiction. Also applies to general shielding of individuals from the consequences of their actions.

Question 14

fee-for-service

Answer 14

list of health care services with monetary or unit values attached that specifies the amounts third parties must pay for specific services.

Question 15

gross domestic product

Answer 15

a statistical measure used to compare health care spending between countries.

Question 16

gross national product

Answer 16

a statistical measure used to compare health care spending between countries.

Question 17

health care rationing

Answer 17

a method to reduce health care costs by controlling the use of health care services and technologies.

Question 18

health economics

Answer 18

branch of economics concerned with how scarce resources affect the health industry.

Question 19

inflation

Answer 19

a sustained upward trend in the prices of goods and services.

Question 20

intensity

Answer 20

the use of technologies, supplies, and health care services by or for the client.

Question 21

investment in public health

Answer 21

movement toward improving a population’s health by all levels of government.

Question 22

macroeconomic theory

Answer 22

branch of economics that deals with the total or aggregate of all individuals and organizations.

Question 23

managed care

Answer 23

refers to integrating payment for services with delivery of services and emphasizing cost-effective service delivery along a continuum of care.

Question 24

managed competition

Answer 24

a creation of market conditions in which the more efficient providers will survive and the more costly will be put out of business.

Question 25

market

Answer 25

a network of buyers and sellers of a commodity, such as health care services.

Question 26

means testing

Answer 26

a method used to assess whether a client’s income level qualifies the client for Medicare/Medicaid.

Question 27

Medicaid (Medical)

Answer 27

a jointly sponsored state and federal program that pays for medical services for the aged, poor, blind, disabled, and families with dependent children.

Question 28

medical technology

Answer 28

the set of techniques, drugs, equipment, and procedures used by health care professions in delivery of medical care to individuals.

Question 29

Medicare

Answer 29

a federally funded health insurance program for the elderly, disabled, and persons with end-stage renal disease.

Question 30

microeconomic theory

Answer 30

the branch of economics that deals with the behaviors of individuals and organizations and the effects of those behaviors on prices, costs, and the allocation and distribution of resources.

Question 31

Human capital

Answer 31

a measure of macroeconomic theory that involves improving human qualities, like health, and is a focus for developing and spending money on goods and services because health is valued; it increases productivity, enhances the income earning ability of people, and improves the economy.