Question 1

Health insurance features that tend to reduce moral hazard include

Accepted Answer

A)  deductibles. 
B)  coinsurance 
C)  copayments 
D)  all of the above 
A)  deductibles. 
B)  coinsurance 
C)  copayments 
D)  all of the above D

Question 2

The top ten causes of death in the United States in 2010 included all of the following but

Accepted Answer

A)  heart disease. 
B)  cancer. 
C)  suicide. 
D)  kidney failure. 
E)  AIDS. 
A)  heart disease. 
B)  cancer. 
C)  suicide. 
D)  kidney failure. 
E)  AIDS. E

Question 3

Factors affecting medical care demand include

Accepted Answer

A)  health status. 
B)  demographic characteristics. 
C)  economic standing. 
D)  physician factors. 
E)  all of the above. 
A)  health status. 
B)  demographic characteristics. 
C)  economic standing. 
D)  physician factors. 
E)  all of the above. E

Question 4

Many economists consider medical care a superior good. Which of the following statements is true regarding a superior good?

Accepted Answer

A)  Consumers want more of a superior good regardless of its price. 
B)  When the price of a superior good increases, consumers demand more of it. 
C)  As consumer income increases a larger percentage of that income is spent on superior goods. 
D)  A superior good has an income elasticity of demand greater than one. 
E)  Both c and d are true of superior goods. 
A)  Consumers want more of a superior good regardless of its price. 
B)  When the price of a superior good increases, consumers demand more of it. 
C)  As consumer income increases a larger percentage of that income is spent on superior goods. 
D)  A superior good has an income elasticity of demand greater than one. 
E)  Both c and d are true of superior goods.

Question 5

Suppose the recipient of a kidney transplant has stated that she would prefer 5 years of perfect health to the 10 years she expects to live with her transplant. For this person, each of her remaining 10 years of life has a QALY value of

Accepted Answer

A)  ½. 
B)  2. 
C)  5. 
D)  10. 
E)  50. 
A)  ½. 
B)  2. 
C)  5. 
D)  10. 
E)  50.

Question 6

A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as

Accepted Answer

A)  supply-side economics. 
B)  supplier-induced demand. 
C)  supply shocks. 
D)  ceteris paribus. 
E)  the fallacy of supply. 
A)  supply-side economics. 
B)  supplier-induced demand. 
C)  supply shocks. 
D)  ceteris paribus. 
E)  the fallacy of supply.

Question 7

The following diagram depicts the market for physicians' services that is originally in equilibrium at point a with demand and supply at D0 and S0. As physician supply increases from S0 to S1, a concurrent shift in demand from D0 to D1

Accepted Answer

A)  may be the result of physician-induced demand. 
B)  will cause overall spending on physicians' services to increase. 
C)  will force physicians to limit the number of patients they see. 
D)  both a and b. 
E)  all of the above. 
A)  may be the result of physician-induced demand. 
B)  will cause overall spending on physicians' services to increase. 
C)  will force physicians to limit the number of patients they see. 
D)  both a and b. 
E)  all of the above.

Question 8

The concept quality-adjusted life year QALY)

Accepted Answer

A)  is a multidisciplinary approach to measuring health status. 
B)  has little application to medical decision making. 
C)  is used extensively in the U.S. to evaluate health care programs. 
D)  is used extensively to evaluate medical care resource allocation within government-run programs on fixed budgets, especially in Europe. 
E)  none of the above. 
A)  is a multidisciplinary approach to measuring health status. 
B)  has little application to medical decision making. 
C)  is used extensively in the U.S. to evaluate health care programs. 
D)  is used extensively to evaluate medical care resource allocation within government-run programs on fixed budgets, especially in Europe. 
E)  none of the above.

Question 9

Health care that actually harms the patient, such as an adverse reaction to a prescription drug is called

Accepted Answer

A)  morbidity-related response. 
B)  defensive medicine. 
C)  adverse selection. 
D)  iatrogenic disease. 
E)  moral hazard. 
A)  morbidity-related response. 
B)  defensive medicine. 
C)  adverse selection. 
D)  iatrogenic disease. 
E)  moral hazard.

Question 10

A physician's ability to induce demand is greatly enhanced when

Accepted Answer

A)  patients pay their own medical bills. 
B)  patients request follow-up visits. 
C)  patients have difficulty gathering and processing information. 
D)  the physician follows strict treatment guidelines. 
E)  treatment options are limited. 
A)  patients pay their own medical bills. 
B)  patients request follow-up visits. 
C)  patients have difficulty gathering and processing information. 
D)  the physician follows strict treatment guidelines. 
E)  treatment options are limited.

Question 11

If health care spending is already on the flat-of-the-curve, it may not be possible to buy improved health status by increasing spending. In this situation, the best way to improve health status may be to

Accepted Answer

A)  increase the availability of government health insurance. 
B)  invest in biotechnology to determine the genetic factors that improve health. 
C)  improve life-style decisions by reducing smoking, alcohol consumption, and drug use. 
D)  improve access to medical care. 
E)  improve overall educational attainment so people can better follow the advice from the medical community. 
A)  increase the availability of government health insurance. 
B)  invest in biotechnology to determine the genetic factors that improve health. 
C)  improve life-style decisions by reducing smoking, alcohol consumption, and drug use. 
D)  improve access to medical care. 
E)  improve overall educational attainment so people can better follow the advice from the medical community.

Question 12

The RAND Health Insurance Study

Accepted Answer

A)  examined cross-section data to estimate the demand function for medical care. 
B)  was the most extensive controlled experiment in health insurance ever conducted in the United States. 
C)  like most economic studies, was based on individual decisions in voluntarily choosing health insurance coverage. 
D)  was flawed due to severe self-selection bias. 
E)  was set up to study medical outcomes when individuals were free to choose the type of health coverage they desired. 
A)  examined cross-section data to estimate the demand function for medical care. 
B)  was the most extensive controlled experiment in health insurance ever conducted in the United States. 
C)  like most economic studies, was based on individual decisions in voluntarily choosing health insurance coverage. 
D)  was flawed due to severe self-selection bias. 
E)  was set up to study medical outcomes when individuals were free to choose the type of health coverage they desired.

Question 13

The accompanying diagram depicts the relationship between health status and medical care spending for a particular country. Which of the following statements is true?

Accepted Answer

A)  At the current spending level of S1 on TP1, this society can get a greater improvement in health status by increasing spending to S2 than by shifting TP to TP2. 
B)  S1 levels of spending may be described as spending on the flat-of-the-curve. 
C)  Social pressures will move the health care system to spend S2. 
D)  All statements are true. 
E)  All statements are false. 
A)  At the current spending level of S1 on TP1, this society can get a greater improvement in health status by increasing spending to S2 than by shifting TP to TP2. 
B)  S1 levels of spending may be described as spending on the flat-of-the-curve. 
C)  Social pressures will move the health care system to spend S2. 
D)  All statements are true. 
E)  All statements are false.

Question 14

The number one cause of death in the United States in 1980 was

Accepted Answer

A)  AIDS. 
B)  heart disease. 
C)  cancer. 
D)  stroke. 
E)  homicide and accidents. 
A)  AIDS. 
B)  heart disease. 
C)  cancer. 
D)  stroke. 
E)  homicide and accidents.

Question 15

McKeown's 1976) research attributed the majority of the secular decline in mortality rates in Europe and North America to

Accepted Answer

A)  better nutrition and housing. 
B)  improved sanitary conditions. 
C)  clean water and waste disposal. 
D)  reduced exposure to diseases. 
E)  better medical care. 
A)  better nutrition and housing. 
B)  improved sanitary conditions. 
C)  clean water and waste disposal. 
D)  reduced exposure to diseases. 
E)  better medical care.

Health insurance features that tend to reduce moral hazard include

The top ten causes of death in the United States in 2010 included all of the following but

Factors affecting medical care demand include

Many economists consider medical care a superior good. Which of the following statements is true regarding a superior good?

Suppose the recipient of a kidney transplant has stated that she would prefer 5 years of perfect health to the 10 years she expects to live with her transplant. For this person, each of her remaining 10 years of life has a QALY value of

A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as

The following diagram depicts the market for physicians' services that is originally in equilibrium at point a with demand and supply at D₀ and S₀. As physician supply increases from S₀ to S₁, a concurrent shift in demand from D₀ to D₁

The concept quality-adjusted life year QALY)

Health care that actually harms the patient, such as an adverse reaction to a prescription drug is called

A physician's ability to induce demand is greatly enhanced when

If health care spending is already on the flat-of-the-curve, it may not be possible to buy improved health status by increasing spending. In this situation, the best way to improve health status may be to

The RAND Health Insurance Study

The accompanying diagram depicts the relationship between health status and medical care spending for a particular country. Which of the following statements is true?

The number one cause of death in the United States in 1980 was

McKeown's 1976) research attributed the majority of the secular decline in mortality rates in Europe and North America to

US Medical Care: an Uncertain Future

Using Economics to Study Health Care Issues

Analyzing Medical Care Markets

Economic Evaluation in Health Care

Population Health

The Market for Health Insurance

Managed Care

The Physicians Services Market

The Hospital Services Market

The Market for Pharmaceuticals

Medicare

Medicaid

Medical Care Systems Worldwide

Filters

Exam 5: The Demand for Health and Medical Care

Health insurance features that tend to reduce moral hazard include

The top ten causes of death in the United States in 2010 included all of the following but

Factors affecting medical care demand include

Many economists consider medical care a superior good. Which of the following statements is true regarding a superior good?

Suppose the recipient of a kidney transplant has stated that she would prefer 5 years of perfect health to the 10 years she expects to live with her transplant. For this person, each of her remaining 10 years of life has a QALY value of

A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as

The following diagram depicts the market for physicians' services that is originally in equilibrium at point a with demand and supply at D0 and S0. As physician supply increases from S0 to S1, a concurrent shift in demand from D0 to D1

The concept quality-adjusted life year QALY)

Health care that actually harms the patient, such as an adverse reaction to a prescription drug is called

A physician's ability to induce demand is greatly enhanced when

If health care spending is already on the flat-of-the-curve, it may not be possible to buy improved health status by increasing spending. In this situation, the best way to improve health status may be to

The RAND Health Insurance Study

The accompanying diagram depicts the relationship between health status and medical care spending for a particular country. Which of the following statements is true?

The number one cause of death in the United States in 1980 was

McKeown's 1976) research attributed the majority of the secular decline in mortality rates in Europe and North America to

US Medical Care: an Uncertain Future

Using Economics to Study Health Care Issues

Analyzing Medical Care Markets

Economic Evaluation in Health Care

Population Health

The Market for Health Insurance

Managed Care

The Physicians Services Market

The Hospital Services Market

The Market for Pharmaceuticals

Medicare

Medicaid

Medical Care Systems Worldwide

Filters

The following diagram depicts the market for physicians' services that is originally in equilibrium at point a with demand and supply at D₀ and S₀. As physician supply increases from S₀ to S₁, a concurrent shift in demand from D₀ to D₁