Question 1

The demand for health care in industrially advanced economies is

Accepted Answer

A) highly elastic with respect to both price and income. 
B) highly inelastic with respect to both price and income. 
C) highly elastic with respect to income but highly inelastic with respect to price. 
D) about unit elasticity with respect to income and relatively inelastic with respect to price. 
A) highly elastic with respect to both price and income. 
B) highly inelastic with respect to both price and income. 
C) highly elastic with respect to income but highly inelastic with respect to price. 
D) about unit elasticity with respect to income and relatively inelastic with respect to price.

Question 2

Which of the following persons is most likely to be insured for health care?

Accepted Answer

A) a minimum-wage teenager working for a fast-food restaurant 
B) a skilled worker employed by a large multinational corporation 
C) an unemployed retail clerk 
D) a part-time groundskeeper for a small manufacturing plant 
A) a minimum-wage teenager working for a fast-food restaurant 
B) a skilled worker employed by a large multinational corporation 
C) an unemployed retail clerk 
D) a part-time groundskeeper for a small manufacturing plant

Question 3

The United States devotes about percent of its gross domestic product to health care (2014).

Accepted Answer

A) 5.2 
B) 8.6 
C) 15.3 
D) 17.5 
A) 5.2 
B) 8.6 
C) 15.3 
D) 17.5

Question 4

Proponents of the Patient Protection and Affordable Care Act (PPACA) had one major goal, which is

Accepted Answer

A) to expand the range of illnesses covered by insurance. 
B) to nationalize health care in the country. 
C) to extend health insurance coverage to all Americans. 
D) to set prices for all health care procedures and services. 
A) to expand the range of illnesses covered by insurance. 
B) to nationalize health care in the country. 
C) to extend health insurance coverage to all Americans. 
D) to set prices for all health care procedures and services.

Question 5

Which of the following is not one of the ways the PPACA attempts to cover the poor?

Accepted Answer

A) requiring larger employers to provide insurance for all of their full-time employees 
B) providing health care directly to the poor through government-run clinics and hospitals 
C) subsidizing the purchase of health insurance for those who buy to comply with the personal mandate 
D) expanding Medicaid to cover anyone with an income less than 133 percent of the poverty level 
A) requiring larger employers to provide insurance for all of their full-time employees 
B) providing health care directly to the poor through government-run clinics and hospitals 
C) subsidizing the purchase of health insurance for those who buy to comply with the personal mandate 
D) expanding Medicaid to cover anyone with an income less than 133 percent of the poverty level

Question 6

As a percentage of GDP, U.S.health care spending is

Accepted Answer

A) higher than that for Germany and Japan but lower than that of the United Kingdom and Sweden. 
B) higher than for any other major industrial country. 
C) lower than that for Canada. 
D) nearly identical to that of the other major industrial nations. 
A) higher than that for Germany and Japan but lower than that of the United Kingdom and Sweden. 
B) higher than for any other major industrial country. 
C) lower than that for Canada. 
D) nearly identical to that of the other major industrial nations.

Question 7

Health care costs have tended to rise more rapidly in the United States than in Canada because

Accepted Answer

A) state insurance regulators in the United States do not face the budget constraints that national regulators in Canada face. 
B) people in the United States want more health care than people in Canada. 
C) private insurance in the United States encourages overconsumption of health care; public insurance in Canada does not. 
D) Canada has better achieved economies of scale in the production of health care. 
A) state insurance regulators in the United States do not face the budget constraints that national regulators in Canada face. 
B) people in the United States want more health care than people in Canada. 
C) private insurance in the United States encourages overconsumption of health care; public insurance in Canada does not. 
D) Canada has better achieved economies of scale in the production of health care.

Question 8

Which person would most likely be eligible to receive Medicaid?

Accepted Answer

A) a person who receives Medicare benefits 
B) a person who receives Social Security benefits 
C) a person who works in a government-operated hospital 
D) a person who qualifies for the Supplementary Security Income program 
A) a person who receives Medicare benefits 
B) a person who receives Social Security benefits 
C) a person who works in a government-operated hospital 
D) a person who qualifies for the Supplementary Security Income program

Question 9

(Last Word) Whole Foods Market's personal wellness accounts for employees

Accepted Answer

A) create significant moral hazard in the purchase of health care services. 
B) provide bonus payments for employees meeting certain health criteria and participating in company wellness activities. 
C) encourage employees to consider the opportunity costs of their medical spending. 
D) encourage employees to overspend for health care, as they view it as "free money." 
A) create significant moral hazard in the purchase of health care services. 
B) provide bonus payments for employees meeting certain health criteria and participating in company wellness activities. 
C) encourage employees to consider the opportunity costs of their medical spending. 
D) encourage employees to overspend for health care, as they view it as "free money."

Question 10

One special feature about health care services is that society regards them as

Accepted Answer

A) private goods. 
B) an entitlement. 
C) something to be rationed by price and ability to pay. 
D) normal goods. 
A) private goods. 
B) an entitlement. 
C) something to be rationed by price and ability to pay. 
D) normal goods.

Question 11

The health care market is characterized by

Accepted Answer

A) extensive negative externalities. 
B) significant positive externalities. 
C) perfect knowledge by both buyers and sellers. 
D) a perfectly inelastic demand. 
A) extensive negative externalities. 
B) significant positive externalities. 
C) perfect knowledge by both buyers and sellers. 
D) a perfectly inelastic demand.

Question 12

By early 2016, after PPACA had been in effect for two years, one major problem that became apparent was that

Accepted Answer

A) many employers were limiting workers to only part-time work to avoid the expensive employer mandate. 
B) most states quickly set up their PPACA-related insurance exchanges without properly vetting applicants. 
C) insurance exchanges in many states were swamped with applicants, resulting in severe resource problems. 
D) the government had to close down many states' insurance exchanges due to abuses. 
A) many employers were limiting workers to only part-time work to avoid the expensive employer mandate. 
B) most states quickly set up their PPACA-related insurance exchanges without properly vetting applicants. 
C) insurance exchanges in many states were swamped with applicants, resulting in severe resource problems. 
D) the government had to close down many states' insurance exchanges due to abuses.

Question 13

Rising health care costs have contributed to slower growth in real wages of workers.

Accepted Answer

A) True 
 B)False

Question 14

Compared to younger people, those who are 65 and older tend to consume roughly

Accepted Answer

A) twice as much health care. 
B) about the same amount of health care. 
C) three-and-a-half times as much health care. 
D) 10 percent less health care. 
A) twice as much health care. 
B) about the same amount of health care. 
C) three-and-a-half times as much health care. 
D) 10 percent less health care.

Question 15

What health care program provides payment for medical benefits to certain low-income people, including the blind, the elderly, persons with disabilities, children, and adults with dependent children?

Accepted Answer

A) Medicaid 
B) Medicare 
C) HMOs 
D) PPOs 
A) Medicaid 
B) Medicare 
C) HMOs 
D) PPOs

Question 16

Approximately how many workers are employed in the U.S.health care industry?

Accepted Answer

A) 650,000 
B) 902,000 
C) 17 million 
D) 12 million 
A) 650,000 
B) 902,000 
C) 17 million 
D) 12 million

Question 17

(Last Word) Indiana's health care plan for state employees

Accepted Answer

A) has reduced total spending on health care, but at the cost of employees forgoing important preventative care procedures. 
B) has reduced total spending on health care without people forgoing important preventative care procedures. 
C) has increased total spending on health care, but with the benefit of increasing the overall health of state workers, who now take greater advantage of preventative care procedures. 
D) has reduced health care spending for those who participate in the plan, but only a small (less than 10 percent) percentage of state employees actually use the system. 
A) has reduced total spending on health care, but at the cost of employees forgoing important preventative care procedures. 
B) has reduced total spending on health care without people forgoing important preventative care procedures. 
C) has increased total spending on health care, but with the benefit of increasing the overall health of state workers, who now take greater advantage of preventative care procedures. 
D) has reduced health care spending for those who participate in the plan, but only a small (less than 10 percent) percentage of state employees actually use the system.

Question 18

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost.The rationale for doing this includes the following, except

Accepted Answer

A) saving taxpayers money. 
B) inducing health care providers to serve Medicare and Medicaid patients. 
C) making hospitals and other providers become more profitable. 
D) putting downward pressure on health care costs. 
A) saving taxpayers money. 
B) inducing health care providers to serve Medicare and Medicaid patients. 
C) making hospitals and other providers become more profitable. 
D) putting downward pressure on health care costs.

Question 19

In the health care market,

Accepted Answer

A) demand has increased relative to supply. 
B) supply has increased relative to demand. 
C) neither demand nor supply has changed significantly in the past two decades. 
D) the concepts of demand and supply are irrelevant. 
A) demand has increased relative to supply. 
B) supply has increased relative to demand. 
C) neither demand nor supply has changed significantly in the past two decades. 
D) the concepts of demand and supply are irrelevant.

Question 20

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

Accepted Answer

A) the number of nurses graduating from universities 
B) productivity in the health care industry 
C) changes in medical technology 
D) physicians' treatment decisions 
A) the number of nurses graduating from universities 
B) productivity in the health care industry 
C) changes in medical technology 
D) physicians' treatment decisions

Exam 24: Health Care

The demand for health care in industrially advanced economies is

Which of the following persons is most likely to be insured for health care?

The United States devotes about percent of its gross domestic product to health care (2014).

Proponents of the Patient Protection and Affordable Care Act (PPACA) had one major goal, which is

Which of the following is not one of the ways the PPACA attempts to cover the poor?

As a percentage of GDP, U.S.health care spending is

Health care costs have tended to rise more rapidly in the United States than in Canada because

Which person would most likely be eligible to receive Medicaid?

(Last Word) Whole Foods Market's personal wellness accounts for employees

One special feature about health care services is that society regards them as

The health care market is characterized by

By early 2016, after PPACA had been in effect for two years, one major problem that became apparent was that

Rising health care costs have contributed to slower growth in real wages of workers.

Compared to younger people, those who are 65 and older tend to consume roughly

What health care program provides payment for medical benefits to certain low-income people, including the blind, the elderly, persons with disabilities, children, and adults with dependent children?

Approximately how many workers are employed in the U.S.health care industry?

(Last Word) Indiana's health care plan for state employees

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost.The rationale for doing this includes the following, except

In the health care market,

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

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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