Question 1

Health insurance typically pays for most preventive care procedures in all of the following countries except

Accepted Answer

A)  Canada. 
B)  Japan. 
C)  the United Kingdom. 
D)  the United States. 
A)  Canada. 
B)  Japan. 
C)  the United Kingdom. 
D)  the United States.

Question 2

Under the Patient Protection and Affordable Care Act (ACA), every company with more than 200 employees must offer health insurance to its employees and must automatically enroll them in the plan.

Accepted Answer

A) True 
 B)False

Question 3

In the United States in 2016, of those companies employing more than 200 workers that offer health care to those workers, ________ of employees accept the coverage.

Accepted Answer

A)  about 10 percent 
B)  roughly 36 percent 
C)  fewer than two-thirds 
D)  almost 98 percent 
A)  about 10 percent 
B)  roughly 36 percent 
C)  fewer than two-thirds 
D)  almost 98 percent

Question 4

Which of the following factors help to explain the sustained increases in health care spending in the United States, and which do not?
a. the additional paperwork, duplication, and waste generated in the U.S. health care system compared to systems in other countries
b. the increasing costs of malpractice insurance and malpractice lawsuit settlements
c. the number of uninsured patients receiving hospital treatment that could have been performed at a lower cost in doctors' offices
d. the slow growth in labor productivity in health care compared to that in the economy as a whole
e. the aging population
f. increases in the cost of providing health care

Accepted Answer

Factors "d," "e," and "f" do help explai

Question 5

In the United States, out-of-pocket spending on health care per person

Accepted Answer

A)  has been rising since 1965. 
B)  has been falling since 1965. 
C)  has remained fairly steady since 1965. 
D)  fell from 1965 through 1995, then began to rise from 1995 to the present. 
A)  has been rising since 1965. 
B)  has been falling since 1965. 
C)  has remained fairly steady since 1965. 
D)  fell from 1965 through 1995, then began to rise from 1995 to the present.

Question 6

Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance. This problem is an example of

Accepted Answer

A)  moral hazard. 
B)  adverse selection. 
C)  market signaling. 
D)  asymmetric information. 
A)  moral hazard. 
B)  adverse selection. 
C)  market signaling. 
D)  asymmetric information.

Question 7

Since 1981, deaths from cardiovascular diseases have decreased in the United States.

Accepted Answer

A) True 
 B)False

Question 8

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

Accepted Answer

A person's height partly relies on nutri

Question 9

The number of people receiving Medicare coverage is expected to ________ by the year 2025.

Accepted Answer

A)  reach 5 million by 
B)  stabilize 
C)  decline by 10 percent 
D)  grow to 74 million 
A)  reach 5 million by 
B)  stabilize 
C)  decline by 10 percent 
D)  grow to 74 million

Question 10

If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost, the quantity of medical services provided would decrease.

Accepted Answer

A) True 
 B)False

Question 11

In 2018, a tax is scheduled to be imposed on employer-provided health insurance plans known as 'Cadillac plans'.

Accepted Answer

A) True 
 B)False

Question 12

If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost, the quantity of medical services provided would increase.

Accepted Answer

A) True 
 B)False

Question 13

Most doctors and hospitals operate as private businesses in all of the following countries except

Accepted Answer

A)  Canada. 
B)  Japan. 
C)  the United Kingdom. 
D)  the United States. 
A)  Canada. 
B)  Japan. 
C)  the United Kingdom. 
D)  the United States.

Question 14

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office

Accepted Answer

A)  employers have more incentive to allow employees time off for doctor visits. 
B)  doctors have less incentive to control their costs. 
C)  insurance companies have more incentive to approve medical procedures for their policy holders. 
D)  consumers have less incentive to visit the doctor's office on a more frequent basis. 
A)  employers have more incentive to allow employees time off for doctor visits. 
B)  doctors have less incentive to control their costs. 
C)  insurance companies have more incentive to approve medical procedures for their policy holders. 
D)  consumers have less incentive to visit the doctor's office on a more frequent basis.

Question 15

All of the following are part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA) except

Accepted Answer

A)  individuals with pre-existing medical conditions are able to acquire health insurance. 
B)  all policies must provide coverage for dependant children up to age 26. 
C)  lifetime dollar maximums on coverage are prohibited. 
D)  limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated. 
A)  individuals with pre-existing medical conditions are able to acquire health insurance. 
B)  all policies must provide coverage for dependant children up to age 26. 
C)  lifetime dollar maximums on coverage are prohibited. 
D)  limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated.

Question 16

In addition to covering the costs of unpredictable events, health insurance typically covers many planned expenses, such as routine checkups, annual physicals, and the cost of vaccinations. Because of this, health insurance

Accepted Answer

A)  discourages overuse of health care services. 
B)  encourages overuse of health care services. 
C)  generates an efficient quantity of health care services. 
D)  is not accepted by most doctors and hospitals. 
A)  discourages overuse of health care services. 
B)  encourages overuse of health care services. 
C)  generates an efficient quantity of health care services. 
D)  is not accepted by most doctors and hospitals.

Question 17

The health care system in ________ is referred to as a universal health insurance system, under which every resident is required to enroll in either a private or the government-provided health insurance program.

Accepted Answer

A)  Canada 
B)  Japan 
C)  the United Kingdom 
D)  the United States 
A)  Canada 
B)  Japan 
C)  the United Kingdom 
D)  the United States

Question 18

In the principal-agent relationship, the agent is

Accepted Answer

A)  the owner of a resource that has hired another party to act on his behalf. 
B)  the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party. 
C)  the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. 
D)  the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf. 
A)  the owner of a resource that has hired another party to act on his behalf. 
B)  the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party. 
C)  the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. 
D)  the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.

Question 19

Typically, the ________ in a country, the higher the level of spending per person on health care.

Accepted Answer

A)  higher the level of income per person 
B)  larger the population 
C)  higher the level of income taxes 
D)  lower the median age of the population 
A)  higher the level of income per person 
B)  larger the population 
C)  higher the level of income taxes 
D)  lower the median age of the population

Question 20

Because of the ________ of vaccinations, economic efficiency would be improved if more people were vaccinated.

Accepted Answer

A)  negative externality 
B)  positive externality 
C)  moral hazard 
D)  adverse selection 
A)  negative externality 
B)  positive externality 
C)  moral hazard 
D)  adverse selection

Exam 7: The Economics of Health Care

Health insurance typically pays for most preventive care procedures in all of the following countries except

Under the Patient Protection and Affordable Care Act (ACA), every company with more than 200 employees must offer health insurance to its employees and must automatically enroll them in the plan.

In the United States in 2016, of those companies employing more than 200 workers that offer health care to those workers, ________ of employees accept the coverage.

In the United States, out-of-pocket spending on health care per person

Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance. This problem is an example of

Since 1981, deaths from cardiovascular diseases have decreased in the United States.

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

The number of people receiving Medicare coverage is expected to ________ by the year 2025.

If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost, the quantity of medical services provided would decrease.

In 2018, a tax is scheduled to be imposed on employer-provided health insurance plans known as 'Cadillac plans'.

If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost, the quantity of medical services provided would increase.

Most doctors and hospitals operate as private businesses in all of the following countries except

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office

All of the following are part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA) except

In addition to covering the costs of unpredictable events, health insurance typically covers many planned expenses, such as routine checkups, annual physicals, and the cost of vaccinations. Because of this, health insurance

The health care system in ________ is referred to as a universal health insurance system, under which every resident is required to enroll in either a private or the government-provided health insurance program.

In the principal-agent relationship, the agent is

Typically, the ________ in a country, the higher the level of spending per person on health care.

Because of the ________ of vaccinations, economic efficiency would be improved if more people were vaccinated.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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