Question 1

About what percentage of total health care spending went to doctors and hospitals (excluding nursing homes) in 2014?

Accepted Answer

A) 67 percent 
B) 52 percent 
C) 33 percent 
D) 21 percent 
A) 67 percent 
B) 52 percent 
C) 33 percent 
D) 21 percent

Question 2

Which of the following factors is not a reason why competitive pricing has not developed in the health care industry?

Accepted Answer

A) The government bans competitive pricing in health care. 
B) Consumers rarely shop around for health care providers. 
C) Insurance covers most consumers' cost of health care. 
D) Consumers are often wary of low prices in health care. 
A) The government bans competitive pricing in health care. 
B) Consumers rarely shop around for health care providers. 
C) Insurance covers most consumers' cost of health care. 
D) Consumers are often wary of low prices in health care.

Question 3

The increased practice of "defensive medicine" is a consequence of

Accepted Answer

A) professional board licensing requirements. 
B) the threat of medical lawsuits. 
C) incentives given by drug companies. 
D) an Act passed by Congress. 
A) professional board licensing requirements. 
B) the threat of medical lawsuits. 
C) incentives given by drug companies. 
D) an Act passed by Congress.

Question 4

In recent decades, health care expenditures in the U.S.have been rising in absolute terms, but falling as a percentage of GDP.

Accepted Answer

A) True 
 B)False

Question 5

Preferred provider organizations (PPOs) are a type of managed-care organization.

Accepted Answer

A) True 
 B)False

Question 6

Suppose you go to a doctor but your health insurance plan does not reimburse you because you have not yet paid enough out of pocket for the year to qualify for insurance benefits.This is an example of

Accepted Answer

A) coinsurance. 
B) a deductible. 
C) monopsony power. 
D) a deferred benefit plan. 
A) coinsurance. 
B) a deductible. 
C) monopsony power. 
D) a deferred benefit plan.

Question 7

The main focus of the Patient Protection and Affordable Care Act (PPACA) is the provision of health insurance coverage to all Americans.

Accepted Answer

A) True 
 B)False

Question 8

The price of medical care in the United States has

Accepted Answer

A) remained relatively unchanged in recent years. 
B) risen slower than the overall price level. 
C) risen at the same pace as the overall price level. 
D) risen faster than the overall price level. 
A) remained relatively unchanged in recent years. 
B) risen slower than the overall price level. 
C) risen at the same pace as the overall price level. 
D) risen faster than the overall price level.

Question 9

A major implication of asymmetric information is that

Accepted Answer

A) health care suppliers may reduce the supply of health care. 
B) health care suppliers may increase the demand for health care. 
C) collusion between health care suppliers and purchasers may accelerate the rise in costs. 
D) resources may be underallocated to the health care industry. 
A) health care suppliers may reduce the supply of health care. 
B) health care suppliers may increase the demand for health care. 
C) collusion between health care suppliers and purchasers may accelerate the rise in costs. 
D) resources may be underallocated to the health care industry.

Question 10

Medicare is the nationwide federal health care program available to Social Security beneficiaries and the disabled.

Accepted Answer

A) True 
 B)False

Question 11

In recent decades, the cost of health care has

Accepted Answer

A) risen fast due to both rising prices and increasing quantities of services consumed. 
B) risen solely because of rising prices of health care goods and services. 
C) remained somewhat stable due to rising prices but falling quantities of services consumed. 
D) risen solely because of rising quantities of medical goods and services consumed. 
A) risen fast due to both rising prices and increasing quantities of services consumed. 
B) risen solely because of rising prices of health care goods and services. 
C) remained somewhat stable due to rising prices but falling quantities of services consumed. 
D) risen solely because of rising quantities of medical goods and services consumed.

Question 12

Singapore's health care system includes the following major elements, except

Accepted Answer

A) government mandates designed to promote competition on price and quality among health care providers. 
B) high out-of-pocket costs to consumers. 
C) laws requiring people to save for future health expenditures. 
D) a national health insurance plan for its citizens provided by the government. 
A) government mandates designed to promote competition on price and quality among health care providers. 
B) high out-of-pocket costs to consumers. 
C) laws requiring people to save for future health expenditures. 
D) a national health insurance plan for its citizens provided by the government.

Question 13

Which of the following terms best characterizes the demand for health care?

Accepted Answer

A) price elastic 
B) price inelastic 
C) income inelastic 
D) negative cross elasticity 
A) price elastic 
B) price inelastic 
C) income inelastic 
D) negative cross elasticity

Question 14

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost.One major consequence of doing this is that hospitals and other providers are then

Accepted Answer

A) reducing the amount of health care services they provide. 
B) passing the uncovered costs on to patients with private health insurance. 
C) denying services to many Medicare and Medicaid patients. 
D) filing for bankruptcy regularly. 
A) reducing the amount of health care services they provide. 
B) passing the uncovered costs on to patients with private health insurance. 
C) denying services to many Medicare and Medicaid patients. 
D) filing for bankruptcy regularly.

Question 15

Health insurance induces consumers to adopt less prevention and overconsumption of health care.

Accepted Answer

A) True 
 B)False

Question 16

Why is there an asymmetric information problem in the market for health care?

Accepted Answer

A) The patient, not the physician, knows most about the amount and type of health care to be provided. 
B) The government, not the physician, knows most about the amount and type of health care to be provided. 
C) Insurance companies, not the physician, know most about the type of health care to be provided. 
D) The physician, not the patient, knows most about the amount and type of health care to be provided. 
A) The patient, not the physician, knows most about the amount and type of health care to be provided. 
B) The government, not the physician, knows most about the amount and type of health care to be provided. 
C) Insurance companies, not the physician, know most about the type of health care to be provided. 
D) The physician, not the patient, knows most about the amount and type of health care to be provided.

Question 17

The Patient Protection and Affordable Care Act (PPACA) includes the establishment of "insurance exchanges" in each state, the purpose of which is to

Accepted Answer

A) create a monopoly or oligopoly of insurance companies in each state. 
B) fix insurance premiums, similar to public utilities. 
C) foster competition among insurance companies. 
D) nationalize the insurance industry in each state. 
A) create a monopoly or oligopoly of insurance companies in each state. 
B) fix insurance premiums, similar to public utilities. 
C) foster competition among insurance companies. 
D) nationalize the insurance industry in each state.

Question 18

The prominence of employer-provided health insurance in the U.S.has had the following major consequences, except

Accepted Answer

A) overuse of health care services. 
B) rapidly rising prices of health care. 
C) reform efforts have mostly focused on regulation of health insurance. 
D) heightened awareness of employees about the true costs of their health care. 
A) overuse of health care services. 
B) rapidly rising prices of health care. 
C) reform efforts have mostly focused on regulation of health insurance. 
D) heightened awareness of employees about the true costs of their health care.

Question 19

The health care industry currently absorbs about 17.5 percent of U.S.gross domestic product.

Accepted Answer

A) True 
 B)False

Question 20

The Patient Protection and Affordable Care Act (PPACA) bans the previous practice of insurance companies to deny coverage based on preexisting conditions.

Accepted Answer

A) True 
 B)False

Exam 24: Health Care

About what percentage of total health care spending went to doctors and hospitals (excluding nursing homes) in 2014?

Which of the following factors is not a reason why competitive pricing has not developed in the health care industry?

The increased practice of "defensive medicine" is a consequence of

In recent decades, health care expenditures in the U.S.have been rising in absolute terms, but falling as a percentage of GDP.

Preferred provider organizations (PPOs) are a type of managed-care organization.

Suppose you go to a doctor but your health insurance plan does not reimburse you because you have not yet paid enough out of pocket for the year to qualify for insurance benefits.This is an example of

The main focus of the Patient Protection and Affordable Care Act (PPACA) is the provision of health insurance coverage to all Americans.

The price of medical care in the United States has

A major implication of asymmetric information is that

Medicare is the nationwide federal health care program available to Social Security beneficiaries and the disabled.

In recent decades, the cost of health care has

Singapore's health care system includes the following major elements, except

Which of the following terms best characterizes the demand for health care?

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost.One major consequence of doing this is that hospitals and other providers are then

Health insurance induces consumers to adopt less prevention and overconsumption of health care.

Why is there an asymmetric information problem in the market for health care?

The Patient Protection and Affordable Care Act (PPACA) includes the establishment of "insurance exchanges" in each state, the purpose of which is to

The prominence of employer-provided health insurance in the U.S.has had the following major consequences, except

The health care industry currently absorbs about 17.5 percent of U.S.gross domestic product.

The Patient Protection and Affordable Care Act (PPACA) bans the previous practice of insurance companies to deny coverage based on preexisting conditions.

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

Filters