Question 1

All of the following factors lead to overconsumption of health care, except

Accepted Answer

A) the practice of defensive medicine. 
B) health insurance that pays most of the health care costs. 
C) a government tax subsidy on employer-financed health insurance. 
D) rising incomes resulting from economic growth. 
A) the practice of defensive medicine. 
B) health insurance that pays most of the health care costs. 
C) a government tax subsidy on employer-financed health insurance. 
D) rising incomes resulting from economic growth.

Question 2

About what percentage of health care spending in the U.S.in 2014 was financed by private health insurance?

Accepted Answer

A) 15 percent 
B) 35 percent 
C) 50 percent 
D) 75 percent 
A) 15 percent 
B) 35 percent 
C) 50 percent 
D) 75 percent

Question 3

Some insurance companies have teamed with hospitals and doctors to provide discounts for their services.The lists of cooperating doctors and hospitals are known as

Accepted Answer

A) health maintenance organizations. 
B) preferred provider organizations. 
C) diagnosis-related groups. 
D) health alliances. 
A) health maintenance organizations. 
B) preferred provider organizations. 
C) diagnosis-related groups. 
D) health alliances.

Question 4

Assume that health insurance pays three-fourths of the cost of health care.Under this type of system, there will be allocative

Accepted Answer

A) efficiency because consumers pay a price below market equilibrium and receive a quantity at which the marginal cost to society equals the marginal benefit. 
B) efficiency because consumers pay a price below market equilibrium and receive a quantity at which the marginal benefit to society exceeds the marginal cost. 
C) inefficiency because consumers pay a price below market equilibrium and receive a quantity at which the marginal cost to society exceeds the marginal benefit. 
D) inefficiency because consumers pay a price above market equilibrium and receive a quantity at which the marginal benefit to society exceeds the marginal cost. 
A) efficiency because consumers pay a price below market equilibrium and receive a quantity at which the marginal cost to society equals the marginal benefit. 
B) efficiency because consumers pay a price below market equilibrium and receive a quantity at which the marginal benefit to society exceeds the marginal cost. 
C) inefficiency because consumers pay a price below market equilibrium and receive a quantity at which the marginal cost to society exceeds the marginal benefit. 
D) inefficiency because consumers pay a price above market equilibrium and receive a quantity at which the marginal benefit to society exceeds the marginal cost.

Question 5

The table gives supply and demand data for a certain elective surgical procedure.If suppliers provide the quantity of health care demanded and insurance pays 50 percent of the remaining equilibrium price after a $1,000 deductible is satisfied, the quantity of health care demanded will be

Accepted Answer

A) 4,000. 
B) 7,000. 
C) 11,000. 
D) 16,000. 
A) 4,000. 
B) 7,000. 
C) 11,000. 
D) 16,000.

Question 6

If the provision of medical insurance encourages people to take more health risks because they know they can receive treatment, then health insurance

Accepted Answer

A) produces an asymmetric information problem. 
B) leads to a universal access problem. 
C) causes a defensive medicine problem. 
D) creates a moral hazard problem. 
A) produces an asymmetric information problem. 
B) leads to a universal access problem. 
C) causes a defensive medicine problem. 
D) creates a moral hazard problem.

Question 7

Approximately what percentage of U.S.health care spending is financed by public insurance?

Accepted Answer

A) 18 percent 
B) 40 percent 
C) 44 percent 
D) 57 percent 
A) 18 percent 
B) 40 percent 
C) 44 percent 
D) 57 percent

Question 8

One of the economic effects of rising health care costs in the labor market is that

Accepted Answer

A) productivity in medical care decreases. 
B) the demand for medical workers is decreasing. 
C) government is cutting health care coverage for workers. 
D) employers are using more temporary and part-time workers. 
A) productivity in medical care decreases. 
B) the demand for medical workers is decreasing. 
C) government is cutting health care coverage for workers. 
D) employers are using more temporary and part-time workers.

Question 9

Total U.S.health care spending in 2014 was approximately

Accepted Answer

A) $847 billion. 
B) $1.6 trillion. 
C) $3.0 trillion. 
D) $4.1 trillion. 
A) $847 billion. 
B) $1.6 trillion. 
C) $3.0 trillion. 
D) $4.1 trillion.

Question 10

The unemployed are disproportionately represented among the uninsured because

Accepted Answer

A) one must be working to qualify for Medicaid. 
B) most workers obtain health insurance through their employers. 
C) most are young and in excellent health, so they choose not to purchase health insurance. 
D) a large percentage of the unemployed are heads of single-parent families. 
A) one must be working to qualify for Medicaid. 
B) most workers obtain health insurance through their employers. 
C) most are young and in excellent health, so they choose not to purchase health insurance. 
D) a large percentage of the unemployed are heads of single-parent families.

Question 11

(Consider This) In 2014, the Medicare and Medicaid programs reimbursed approximately what percentage of hospitals' total cost of providing care to the patients covered by those programs?

Accepted Answer

A) 80 percent 
B) 90 percent 
C) 100 percent 
D) 105 percent 
A) 80 percent 
B) 90 percent 
C) 100 percent 
D) 105 percent

Question 12

Aside from new taxes, the Patient Protection and Affordable Care Act (PPACA) aims to generate revenue by enforcing a personal mandate that requires all individuals not covered by employer- or government-provided health insurance to purchase insurance.

Accepted Answer

A) True 
 B)False

Question 13

(Consider This) Subsidies to encourage hospitals and physicians to adopt electronic medical records have resulted in which of the following?

Accepted Answer

A) improved care for a greater number of patients because of the efficiency gains 
B) reduced health care costs because of the efficiency gains in record keeping 
C) more patients seen but at a higher cost because of the high fixed cost of the recording devices 
D) less care at higher costs, as the extensive record-keeping process reduces efficiency 
A) improved care for a greater number of patients because of the efficiency gains 
B) reduced health care costs because of the efficiency gains in record keeping 
C) more patients seen but at a higher cost because of the high fixed cost of the recording devices 
D) less care at higher costs, as the extensive record-keeping process reduces efficiency

Question 14

Insurance companies use deductibles and copayments to

Accepted Answer

A) increase access to health care. 
B) reduce health care costs by discouraging overuse of the health care system. 
C) prevent small companies from self-insuring their workers. 
D) keep government out of the health care insurance industry. 
A) increase access to health care. 
B) reduce health care costs by discouraging overuse of the health care system. 
C) prevent small companies from self-insuring their workers. 
D) keep government out of the health care insurance industry.

Question 15

Roughly how much of health care spending in the U.S.in 2014 was financed by private and public insurance?

Accepted Answer

A) 20 percent 
B) 40 percent 
C) 60 percent 
D) 80 percent 
A) 20 percent 
B) 40 percent 
C) 60 percent 
D) 80 percent

Question 16

Which of the following constituted the largest share of total health care spending in 2014?

Accepted Answer

A) physicians 
B) hospitals 
C) nursing homes 
D) prescription drugs 
A) physicians 
B) hospitals 
C) nursing homes 
D) prescription drugs

Question 17

Employer-provided private health insurance

Accepted Answer

A) is unique to the United States and not typically found in other countries. 
B) is the most common form of health care provision in industrialized countries. 
C) substantially reduces the cost of health care provision relative to national health insurance schemes. 
D) provides a small percentage of health care spending in the United States. 
A) is unique to the United States and not typically found in other countries. 
B) is the most common form of health care provision in industrialized countries. 
C) substantially reduces the cost of health care provision relative to national health insurance schemes. 
D) provides a small percentage of health care spending in the United States.

Question 18

The number of Americans without health insurance (as of 2015) is approximately

Accepted Answer

A) 20 million, or about 6.3 percent of the population. 
B) 49 million, or about 15.3 percent of the population. 
C) 30 million, or about 9.4 percent of the population. 
D) 72 million, or about 22.5 percent of the population. 
A) 20 million, or about 6.3 percent of the population. 
B) 49 million, or about 15.3 percent of the population. 
C) 30 million, or about 9.4 percent of the population. 
D) 72 million, or about 22.5 percent of the population.

Question 19

Approximately what portion of health care spending in the U.S.in 2014 was paid by the patients (out-of-pocket)?

Accepted Answer

A) 21 percent 
B) 44 percent 
C) 60 percent 
D) 75 percent 
A) 21 percent 
B) 44 percent 
C) 60 percent 
D) 75 percent

Question 20

Raising deductibles and copayments in health insurance plans is one effective way to contain health care costs.

Accepted Answer

A) True 
 B)False

Exam 24: Health Care

All of the following factors lead to overconsumption of health care, except

About what percentage of health care spending in the U.S.in 2014 was financed by private health insurance?

Some insurance companies have teamed with hospitals and doctors to provide discounts for their services.The lists of cooperating doctors and hospitals are known as

Assume that health insurance pays three-fourths of the cost of health care.Under this type of system, there will be allocative

The table gives supply and demand data for a certain elective surgical procedure.If suppliers provide the quantity of health care demanded and insurance pays 50 percent of the remaining equilibrium price after a $1,000 deductible is satisfied, the quantity of health care demanded will be

If the provision of medical insurance encourages people to take more health risks because they know they can receive treatment, then health insurance

Approximately what percentage of U.S.health care spending is financed by public insurance?

One of the economic effects of rising health care costs in the labor market is that

Total U.S.health care spending in 2014 was approximately

The unemployed are disproportionately represented among the uninsured because

(Consider This) In 2014, the Medicare and Medicaid programs reimbursed approximately what percentage of hospitals' total cost of providing care to the patients covered by those programs?

Aside from new taxes, the Patient Protection and Affordable Care Act (PPACA) aims to generate revenue by enforcing a personal mandate that requires all individuals not covered by employer- or government-provided health insurance to purchase insurance.

(Consider This) Subsidies to encourage hospitals and physicians to adopt electronic medical records have resulted in which of the following?

Insurance companies use deductibles and copayments to

Roughly how much of health care spending in the U.S.in 2014 was financed by private and public insurance?

Which of the following constituted the largest share of total health care spending in 2014?

Employer-provided private health insurance

The number of Americans without health insurance (as of 2015) is approximately

Approximately what portion of health care spending in the U.S.in 2014 was paid by the patients (out-of-pocket)?

Raising deductibles and copayments in health insurance plans is one effective way to contain health care costs.

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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