Question 1

According to economic theory what is the optimal percentage of GDP to be spent on medical care?

Accepted Answer

A)  6 percent. 
B)  8 percent. 
C)  10 percent. 
D)  12 percent. 
E)  There is no widely-accepted way to determine the optimal percentage. 
A)  6 percent. 
B)  8 percent. 
C)  10 percent. 
D)  12 percent. 
E)  There is no widely-accepted way to determine the optimal percentage. E

Question 2

The opportunity cost of investing in a new lithotripter a machine that pulverizes kidney stones with sound waves) is

Accepted Answer

A)  defined by the dollar cost of the equipment. 
B)  the same for every health care provider. 
C)  measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine. 
D)  defined by the next best use of the money invested in the equipment. 
E)  impossible to calculate. 
A)  defined by the dollar cost of the equipment. 
B)  the same for every health care provider. 
C)  measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine. 
D)  defined by the next best use of the money invested in the equipment. 
E)  impossible to calculate. D

Question 3

According to recent public opinion polls, what percentage of Americans are satisfied with the quality of the medical care they receive?

Accepted Answer

A)  15 percent. 
B)  40 percent. 
C)  65 percent. 
D)  70 percent. 
E)  90 percent. 
A)  15 percent. 
B)  40 percent. 
C)  65 percent. 
D)  70 percent. 
E)  90 percent. D

Question 4

Which of the following is not a characteristic that makes medical care different from other commodities?

Accepted Answer

A)  Demand for medical care is irregular. 
B)  Sellers have more information than buyers. 
C)  Third-party payers abound. 
D)  For-profit providers play a major role in delivering medical care. 
E)  The transaction itself if filled with uncertainty.
Structured Discussion: 
A)  Demand for medical care is irregular. 
B)  Sellers have more information than buyers. 
C)  Third-party payers abound. 
D)  For-profit providers play a major role in delivering medical care. 
E)  The transaction itself if filled with uncertainty.
Structured Discussion:

Question 5

Economists use the term "marginal" to describe costs and benefits

Accepted Answer

A)  that are minimal and hardly worth noting. 
B)  that are incremental and thus relevant to decision making. 
C)  that are noteworthy but not the most important. 
D)  whose importance can be minimized through hard work. 
E)  none of the above. 
A)  that are minimal and hardly worth noting. 
B)  that are incremental and thus relevant to decision making. 
C)  that are noteworthy but not the most important. 
D)  whose importance can be minimized through hard work. 
E)  none of the above.

Question 6

The 1974 federal legislation that exempted employers from certain state laws governing health insurance was

Accepted Answer

A)  COBRA 
B)  ERISA 
C)  CON 
D)  HIPAA 
E)  SCHIP 
A)  COBRA 
B)  ERISA 
C)  CON 
D)  HIPAA 
E)  SCHIP

Question 7

Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called

Accepted Answer

A)  price discrimination. 
B)  cost-shifting. 
C)  categorical costing. 
D)  reprehensible and unethical. 
E)  creative accounting. 
A)  price discrimination. 
B)  cost-shifting. 
C)  categorical costing. 
D)  reprehensible and unethical. 
E)  creative accounting.

Question 8

The "invisible hand" using Adam Smith's terminology refers to

Accepted Answer

A)  government control of the market. 
B)  market forces working through the price mechanism. 
C)  the money supply that serves to keep the economy working smoothly. 
D)  the role of innovation in maintaining a steady rate of growth. 
E)  "behind-the-scenes" policy making to influence how markets allocate scarce resources. 
A)  government control of the market. 
B)  market forces working through the price mechanism. 
C)  the money supply that serves to keep the economy working smoothly. 
D)  the role of innovation in maintaining a steady rate of growth. 
E)  "behind-the-scenes" policy making to influence how markets allocate scarce resources.

Question 9

Which of the following statements is based on positive analysis?

Accepted Answer

A)  Individuals without health insurance have less access to physicians' services than those who have health insurance. 
B)  The high cost of health insurance places U.S. firms at a competitive disadvantage with their foreign competitors. 
C)  Employers should be required to provide health insurance for all full-time workers and their dependents. 
D)  none of the above. 
E)  Both a and b. 
A)  Individuals without health insurance have less access to physicians' services than those who have health insurance. 
B)  The high cost of health insurance places U.S. firms at a competitive disadvantage with their foreign competitors. 
C)  Employers should be required to provide health insurance for all full-time workers and their dependents. 
D)  none of the above. 
E)  Both a and b.

Question 10

Self-insurance refers to: the practice of setting aside funds to pay for medical care expenses instead of paying premiums to an insurance company. Approximately, _______ of all employees who participate in group insurance plans work for firms that self-insure.

Accepted Answer

A)  starting one's own insurance company 
B)  buying insurance from a not for profit entity 
C)  setting aside fund to pay for medical care expenses instead of buying insurance 
D)  none of these 
E)  both a and b 
A)  starting one's own insurance company 
B)  buying insurance from a not for profit entity 
C)  setting aside fund to pay for medical care expenses instead of buying insurance 
D)  none of these 
E)  both a and b

Question 11

Opportunity cost is a measure of

Accepted Answer

A)  foregone opportunities. 
B)  value based on the alternative not chosen. 
C)  value in terms of the cost of production. 
D)  the difference between production cost and resource cost. 
E)  both a and b. 
A)  foregone opportunities. 
B)  value based on the alternative not chosen. 
C)  value in terms of the cost of production. 
D)  the difference between production cost and resource cost. 
E)  both a and b.

According to economic theory what is the optimal percentage of GDP to be spent on medical care?

The opportunity cost of investing in a new lithotripter a machine that pulverizes kidney stones with sound waves) is

According to recent public opinion polls, what percentage of Americans are satisfied with the quality of the medical care they receive?

Which of the following is not a characteristic that makes medical care different from other commodities?

Economists use the term "marginal" to describe costs and benefits

The 1974 federal legislation that exempted employers from certain state laws governing health insurance was

Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called

The "invisible hand" using Adam Smith's terminology refers to

Which of the following statements is based on positive analysis?

Self-insurance refers to: the practice of setting aside funds to pay for medical care expenses instead of paying premiums to an insurance company. Approximately, _______ of all employees who participate in group insurance plans work for firms that self-insure.

Opportunity cost is a measure of

Using Economics to Study Health Care Issues

Analyzing Medical Care Markets

Economic Evaluation in Health Care

The Demand for Health and Medical 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 1: US Medical Care: an Uncertain Future

According to economic theory what is the optimal percentage of GDP to be spent on medical care?

The opportunity cost of investing in a new lithotripter a machine that pulverizes kidney stones with sound waves) is

According to recent public opinion polls, what percentage of Americans are satisfied with the quality of the medical care they receive?

Which of the following is not a characteristic that makes medical care different from other commodities?

Economists use the term "marginal" to describe costs and benefits

The 1974 federal legislation that exempted employers from certain state laws governing health insurance was

Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called

The "invisible hand" using Adam Smith's terminology refers to

Which of the following statements is based on positive analysis?

Self-insurance refers to: the practice of setting aside funds to pay for medical care expenses instead of paying premiums to an insurance company. Approximately, _______ of all employees who participate in group insurance plans work for firms that self-insure.

Opportunity cost is a measure of

Using Economics to Study Health Care Issues

Analyzing Medical Care Markets

Economic Evaluation in Health Care

The Demand for Health and Medical 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