Question 1

The employer mandate of the PPACA requires that

Accepted Answer

A) every firm must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
B) every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
C) every firm with fewer than 50 full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
D) every firm with 500 or more employees must establish their own on-site medical facilities to provide employees with basic medical care. 
A) every firm must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
B) every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
C) every firm with fewer than 50 full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
D) every firm with 500 or more employees must establish their own on-site medical facilities to provide employees with basic medical care. B

Question 2

The problem of asymmetric information is that

Accepted Answer

A) neither health care buyers nor providers are well-informed. 
B) health care providers are well-informed, but buyers are not. 
C) the outcomes of many complex medical procedures cannot be predicted. 
D) insurance companies are well-informed, but policy purchasers are not. 
A) neither health care buyers nor providers are well-informed. 
B) health care providers are well-informed, but buyers are not. 
C) the outcomes of many complex medical procedures cannot be predicted. 
D) insurance companies are well-informed, but policy purchasers are not. B

Question 3

If the existence of health insurance increases one's incentive to use the health care system more intensively, this is an illustration of

Accepted Answer

A) the adverse selection problem. 
B) the moral hazard problem. 
C) the benefits-received principle. 
D) the Coase theorem. 
A) the adverse selection problem. 
B) the moral hazard problem. 
C) the benefits-received principle. 
D) the Coase theorem. B

Question 4

One major factor contributing to rising health care costs is

Accepted Answer

A) the increased use of expensive outpatient facilities. 
B) reduced insurance coverage of new medical illnesses. 
C) payments for medical services given to immigrants. 
D) the lack of patients' concern regarding cost of treatments. 
A) the increased use of expensive outpatient facilities. 
B) reduced insurance coverage of new medical illnesses. 
C) payments for medical services given to immigrants. 
D) the lack of patients' concern regarding cost of treatments.

Question 5

Which of the following is a demand-increasing factor in the health care market?

Accepted Answer

A) rising incomes 
B) the aging of the population 
C) asymmetric information 
D) all of these 
A) rising incomes 
B) the aging of the population 
C) asymmetric information 
D) all of these

Question 6

Which of the following statements is true about health care costs in the United States?

Accepted Answer

A) Costs have risen because increases in the price of health care have more than offset reductions in the quantity of health care provided. 
B) Costs have risen because increases in the quantity of care provided have more than offset price reductions realized through economies of scale. 
C) Costs have risen because both the price of health care and the quantity provided have risen. 
D) Costs have remained relatively stable as price increases have been largely offset by reductions in the quantity provided. 
A) Costs have risen because increases in the price of health care have more than offset reductions in the quantity of health care provided. 
B) Costs have risen because increases in the quantity of care provided have more than offset price reductions realized through economies of scale. 
C) Costs have risen because both the price of health care and the quantity provided have risen. 
D) Costs have remained relatively stable as price increases have been largely offset by reductions in the quantity provided.

Question 7

Reasons for the rapid rise in demand for health care despite steeply rising prices include the following, except

Accepted Answer

A) people regarding health care as an entitlement or a right. 
B) imperfect information among consumers of health care. 
C) third-party insurance payments shielding consumers from the true cost of health care. 
D) high income-elasticity of the demand for health care services. 
A) people regarding health care as an entitlement or a right. 
B) imperfect information among consumers of health care. 
C) third-party insurance payments shielding consumers from the true cost of health care. 
D) high income-elasticity of the demand for health care services.

Question 8

Those without any health insurance in the U.S.tend to be the following groups, except

Accepted Answer

A) those who are in excellent health and those with the poorest health. 
B) workers in small firms. 
C) minimum-wage workers. 
D) those receiving Social Security payments. 
A) those who are in excellent health and those with the poorest health. 
B) workers in small firms. 
C) minimum-wage workers. 
D) those receiving Social Security payments.

Question 9

The health care industry includes the manufacture and sale of low-fat food.

Accepted Answer

A) True 
 B)False

Question 10

The perceived central economic problem associated with the U.S.health care system is

Accepted Answer

A) too many frivolous malpractice lawsuits. 
B) an overabundance of scanning machines. 
C) an overallocation of resources to the system. 
D) that workers lose their insurance when they lose their jobs. 
A) too many frivolous malpractice lawsuits. 
B) an overabundance of scanning machines. 
C) an overallocation of resources to the system. 
D) that workers lose their insurance when they lose their jobs.

Question 11

Which of the following would increase the supply of health care services?

Accepted Answer

A) increased practice of defensive medicine 
B) more tax subsidies for consumers 
C) increases in physicians' productivity 
D) increases in health insurance coverage 
A) increased practice of defensive medicine 
B) more tax subsidies for consumers 
C) increases in physicians' productivity 
D) increases in health insurance coverage

Question 12

The recently enacted health care reform package (the Patient Protection and Affordable Care Act) focuses solely on controlling health care costs.

Accepted Answer

A) True 
 B)False

Question 13

Sam decides to join the Gigantic State University's rugby team when he learns that his health insurance will pay for any subsequent injury.This illustrates

Accepted Answer

A) the diagnosis-related-group system. 
B) a "pay or play" system. 
C) the moral hazard problem. 
D) the Coase theorem. 
A) the diagnosis-related-group system. 
B) a "pay or play" system. 
C) the moral hazard problem. 
D) the Coase theorem.

Question 14

Based on the available elasticity evidence, health care

Accepted Answer

A) is an inferior good. 
B) is a normal good. 
C) is highly elastic with respect to price. 
D) has a price elasticity of demand of 1. 
A) is an inferior good. 
B) is a normal good. 
C) is highly elastic with respect to price. 
D) has a price elasticity of demand of 1.

Question 15

One of the provisions of the PPACA is a personal mandate that all individuals

Accepted Answer

A) pay a $1,000 deductible and 20 percent co-pay on all medical care except annual check-ups or preventative care. 
B) contribute at least 30 percent of the total cost of employer-provided health insurance. 
C) purchase health insurance for themselves and their dependents unless they are already covered by government or employer-provided insurance. 
D) with preexisting conditions must purchase a specially designated government insurance plan. 
A) pay a $1,000 deductible and 20 percent co-pay on all medical care except annual check-ups or preventative care. 
B) contribute at least 30 percent of the total cost of employer-provided health insurance. 
C) purchase health insurance for themselves and their dependents unless they are already covered by government or employer-provided insurance. 
D) with preexisting conditions must purchase a specially designated government insurance plan.

Question 16

The percentage of cost that an insured individual pays while the insurer pays the remainder would be considered

Accepted Answer

A) copayments 
B) deductibles. 
C) play-or-pay. 
D) fee for service. 
A) copayments 
B) deductibles. 
C) play-or-pay. 
D) fee for service.

Question 17

Which of the following financed the largest share of health care spending in the U.S.in 2014?

Accepted Answer

A) Medicare 
B) Medicaid 
C) copayments and deductions paid by patients 
D) military and other public insurance (excl.Medicare and Medicaid) 
A) Medicare 
B) Medicaid 
C) copayments and deductions paid by patients 
D) military and other public insurance (excl.Medicare and Medicaid)

Question 18

Health care spending was about what percentage of U.S.GDP in 2014?

Accepted Answer

A) 45 percent 
B) 32 percent 
C) 18 percent 
D) 8 percent 
A) 45 percent 
B) 32 percent 
C) 18 percent 
D) 8 percent

Question 19

Raising the deductibles and copayments is a way of dealing with the

Accepted Answer

A) adverse selection problem of health insurance 
B) moral hazard problem of health insurance. 
C) asymmetric information between doctors and patients. 
D) externalities of health care.Difficulty: 02 Medium 
A) adverse selection problem of health insurance 
B) moral hazard problem of health insurance. 
C) asymmetric information between doctors and patients. 
D) externalities of health care.Difficulty: 02 Medium

Question 20

Some employers have reacted to rising health care costs by hiring more part-time and temporary workers.

Accepted Answer

A) True 
 B)False

Exam 24: Health Care

The employer mandate of the PPACA requires that

The problem of asymmetric information is that

If the existence of health insurance increases one's incentive to use the health care system more intensively, this is an illustration of

One major factor contributing to rising health care costs is

Which of the following is a demand-increasing factor in the health care market?

Which of the following statements is true about health care costs in the United States?

Reasons for the rapid rise in demand for health care despite steeply rising prices include the following, except

Those without any health insurance in the U.S.tend to be the following groups, except

The health care industry includes the manufacture and sale of low-fat food.

The perceived central economic problem associated with the U.S.health care system is

Which of the following would increase the supply of health care services?

The recently enacted health care reform package (the Patient Protection and Affordable Care Act) focuses solely on controlling health care costs.

Sam decides to join the Gigantic State University's rugby team when he learns that his health insurance will pay for any subsequent injury.This illustrates

Based on the available elasticity evidence, health care

One of the provisions of the PPACA is a personal mandate that all individuals

The percentage of cost that an insured individual pays while the insurer pays the remainder would be considered

Which of the following financed the largest share of health care spending in the U.S.in 2014?

Health care spending was about what percentage of U.S.GDP in 2014?

Raising the deductibles and copayments is a way of dealing with the

Some employers have reacted to rising health care costs by hiring more part-time and temporary workers.

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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