Question 1

Which of the following nations has the highest percentage of its GDP spent on health care?

Accepted Answer

A) Singapore 
B) Canada 
C) France 
D) United States 
A) Singapore 
B) Canada 
C) France 
D) United States

Question 2

Between 1960 and 2014, U.S.health care spending as a percentage of domestic output

Accepted Answer

A) more than tripled. 
B) more than quadrupled. 
C) declined by one-half. 
D) remained relatively constant. 
A) more than tripled. 
B) more than quadrupled. 
C) declined by one-half. 
D) remained relatively constant.

Question 3

The fundamental problem associated with the U.S.health care system is that

Accepted Answer

A) the financing of health care through insurance has resulted in the underallocation of resources to the health care industry. 
B) frivolous malpractice suits have increased malpractice insurance premiums for doctors. 
C) at the margin, the value of health care services may be less than the value of alternative goods and services. 
D) there are too many general practitioners and not enough specialists. 
A) the financing of health care through insurance has resulted in the underallocation of resources to the health care industry. 
B) frivolous malpractice suits have increased malpractice insurance premiums for doctors. 
C) at the margin, the value of health care services may be less than the value of alternative goods and services. 
D) there are too many general practitioners and not enough specialists.

Question 4

Other things equal, increased emphasis on providing the best possible medical care for all, regardless of income, will

Accepted Answer

A) increase the demand for health care. 
B) increase the supply of health care. 
C) have no effect. 
D) decrease the demand for health care. 
A) increase the demand for health care. 
B) increase the supply of health care. 
C) have no effect. 
D) decrease the demand for health care.

Question 5

Health care expenditures coming directly out of consumers' pockets, primarily in the form of deductibles and copayments, account for what percentage of U.S.health care spending?

Accepted Answer

A) 21 percent 
B) 35 percent 
C) 44 percent 
D) 17 percent 
A) 21 percent 
B) 35 percent 
C) 44 percent 
D) 17 percent

Question 6

Which of the following is a nationwide Federal health care program available to Social Security beneficiaries and persons with disabilities?

Accepted Answer

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

Question 7

The burden of Medicaid costs is

Accepted Answer

A) the sole responsibility of states. 
B) the sole responsibility of the Federal government. 
C) shared by the states and Federal government. 
D) shared by the states and the individual receiving the benefits. 
A) the sole responsibility of states. 
B) the sole responsibility of the Federal government. 
C) shared by the states and Federal government. 
D) shared by the states and the individual receiving the benefits.

Question 8

The following are supply factors in the health care market, except

Accepted Answer

A) number of physicians and nurses. 
B) productivity of health care workers. 
C) medical technology. 
D) health care insurance. 
A) number of physicians and nurses. 
B) productivity of health care workers. 
C) medical technology. 
D) health care insurance.

Question 9

In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about

Accepted Answer

A) +3. 
B) +6. 
C) −2. 
D) +1. 
A) +3. 
B) +6. 
C) −2. 
D) +1.

Question 10

About what percentage of the U.S.population had no health insurance for the entire year in 2015?

Accepted Answer

A) 3 percent 
B) 9 percent 
C) 25 percent 
D) 33 percent 
A) 3 percent 
B) 9 percent 
C) 25 percent 
D) 33 percent

Question 11

"Defensive medicine" means the same thing as "preventive medicine."

Accepted Answer

A) True 
 B)False

Question 12

(Consider This) The PPACA created incentives for firms to

Accepted Answer

A) expand their workforces. 
B) provide on-site medical care for their workers. 
C) reduce workers to part-time status. 
D) fire workers with medical problems. 
A) expand their workforces. 
B) provide on-site medical care for their workers. 
C) reduce workers to part-time status. 
D) fire workers with medical problems.

Question 13

One way that the Patient Protection and Affordable Care Act (PPACA) hopes to foster competition among health insurance companies is through so-called insurance exchanges.

Accepted Answer

A) True 
 B)False

Question 14

Defensive medicine

Accepted Answer

A) solves the moral hazard problem. 
B) increases the demand and costs for health care. 
C) solves the principal-agent problem. 
D) is the same as preventive medicine. 
A) solves the moral hazard problem. 
B) increases the demand and costs for health care. 
C) solves the principal-agent problem. 
D) is the same as preventive medicine.

Question 15

U.S.hospitals provide a significant amount of uncompensated, or "free," health care every year to the uninsured poor who are rushed in for emergency or critical care.

Accepted Answer

A) True 
 B)False

Question 16

Data on the income elasticity of demand for health care suggest that health care is a(n)

Accepted Answer

A) inelastic good. 
B) private good. 
C) public good. 
D) normal good. 
A) inelastic good. 
B) private good. 
C) public good. 
D) normal good.

Question 17

A unit set up by insurance companies that requires hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan is a

Accepted Answer

A) preferred provider organization. 
B) health maintenance organization. 
C) diagnosis-related group system. 
D) regional health alliance. 
A) preferred provider organization. 
B) health maintenance organization. 
C) diagnosis-related group system. 
D) regional health alliance.

Question 18

After two years of being in effect by early 2016, one apparent implementation problem that the PPACA faced was that

Accepted Answer

A) many young people wanted to participate, but most older people did not. 
B) many older people wanted to participate, but many younger ones did not. 
C) in each state, the pricing structure (health insurance rates) was multitiered and too complex. 
D) the health insurance rates created an implicit wealth transfer from older to younger people. 
A) many young people wanted to participate, but most older people did not. 
B) many older people wanted to participate, but many younger ones did not. 
C) in each state, the pricing structure (health insurance rates) was multitiered and too complex. 
D) the health insurance rates created an implicit wealth transfer from older to younger people.

Question 19

The idea that one pays a relatively small known cost for protection against an uncertain and much larger cost is the basic principle behind

Accepted Answer

A) insurance. 
B) copayment. 
C) moral hazard. 
D) asymmetric information. 
A) insurance. 
B) copayment. 
C) moral hazard. 
D) asymmetric information.

Question 20

It is generally agreed that in the long run the cost of private health insurance provided by employers is

Accepted Answer

A) at the expense of business profits. 
B) at the expense of real wages. 
C) paid by taxpayers through government. 
D) included as taxable income for income tax purposes.Difficulty: 01 Easy 
A) at the expense of business profits. 
B) at the expense of real wages. 
C) paid by taxpayers through government. 
D) included as taxable income for income tax purposes.Difficulty: 01 Easy

Exam 24: Health Care

Which of the following nations has the highest percentage of its GDP spent on health care?

Between 1960 and 2014, U.S.health care spending as a percentage of domestic output

The fundamental problem associated with the U.S.health care system is that

Other things equal, increased emphasis on providing the best possible medical care for all, regardless of income, will

Health care expenditures coming directly out of consumers' pockets, primarily in the form of deductibles and copayments, account for what percentage of U.S.health care spending?

Which of the following is a nationwide Federal health care program available to Social Security beneficiaries and persons with disabilities?

The burden of Medicaid costs is

The following are supply factors in the health care market, except

In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about

About what percentage of the U.S.population had no health insurance for the entire year in 2015?

"Defensive medicine" means the same thing as "preventive medicine."

(Consider This) The PPACA created incentives for firms to

One way that the Patient Protection and Affordable Care Act (PPACA) hopes to foster competition among health insurance companies is through so-called insurance exchanges.

Defensive medicine

U.S.hospitals provide a significant amount of uncompensated, or "free," health care every year to the uninsured poor who are rushed in for emergency or critical care.

Data on the income elasticity of demand for health care suggest that health care is a(n)

A unit set up by insurance companies that requires hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan is a

After two years of being in effect by early 2016, one apparent implementation problem that the PPACA faced was that

The idea that one pays a relatively small known cost for protection against an uncertain and much larger cost is the basic principle behind

It is generally agreed that in the long run the cost of private health insurance provided by employers is

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

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Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

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Aggregate Demand and Aggregate Supply

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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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