Question 1

Rising health care costs have prompted workers to change jobs with greater frequency.

Accepted Answer

A) True 
 B)False

Question 2

A decrease in the demand for health care would most likely result from

Accepted Answer

A) newer and more costly medical technology. 
B) more use of defensive medicine. 
C) an aging population. 
D) healthier lifestyles. 
A) newer and more costly medical technology. 
B) more use of defensive medicine. 
C) an aging population. 
D) healthier lifestyles.

Question 3

Rising health care costs have the following implications, except

Accepted Answer

A) faster growth of wages to workers. 
B) a growing number of uninsured workers. 
C) large numbers of personal bankruptcies. 
D) outsourcing and off-shoring of firms' operations. 
A) faster growth of wages to workers. 
B) a growing number of uninsured workers. 
C) large numbers of personal bankruptcies. 
D) outsourcing and off-shoring of firms' operations.

Question 4

Employers in the U.S.started offering health insurance as a fringe benefit to their employees during World War II as a way of getting around the wage controls that were in effect then.

Accepted Answer

A) True 
 B)False

Question 5

The Patient Protection and Affordable Care Act (PPACA) of 2010 is designed to address a wide-ranging set of issues including the following, except

Accepted Answer

A) the large portion of health spending supported by government insurance. 
B) the high and rising cost of health insurance and health care spending. 
C) the fact that tens of millions of Americans do not have health insurance. 
D) the inability of many people with preexisting conditions to obtain health insurance. 
A) the large portion of health spending supported by government insurance. 
B) the high and rising cost of health insurance and health care spending. 
C) the fact that tens of millions of Americans do not have health insurance. 
D) the inability of many people with preexisting conditions to obtain health insurance.

Question 6

The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine.

Accepted Answer

A) True 
 B)False

Question 7

Monthly premiums for Medicare insurance that private individuals pay cover how much of the cost of benefits provided by the program?

Accepted Answer

A) one-fourth 
B) one-half 
C) three-fourths 
D) 100 percent 
A) one-fourth 
B) one-half 
C) three-fourths 
D) 100 percent

Question 8

As a percentage of GDP, U.S.health care spending is higher than that of any other major industrial country.

Accepted Answer

A) True 
 B)False

Question 9

Health savings accounts (HSAs), implemented by the 2003 Medicare law,

Accepted Answer

A) are only available to those enrolled in Medicare. 
B) allow workers to accumulate untaxed dollars for payment of qualified medical expenses. 
C) are criticized because they require workers to "use it or lose it" each year; workers are not allowed to accumulate balances over time. 
D) can only be used to pay for prescription drugs. 
A) are only available to those enrolled in Medicare. 
B) allow workers to accumulate untaxed dollars for payment of qualified medical expenses. 
C) are criticized because they require workers to "use it or lose it" each year; workers are not allowed to accumulate balances over time. 
D) can only be used to pay for prescription drugs.

Question 10

An increase in the demand for health care would most likely result from

Accepted Answer

A) healthier lifestyles. 
B) an aging population. 
C) less health insurance coverage. 
D) increased productivity in health care. 
A) healthier lifestyles. 
B) an aging population. 
C) less health insurance coverage. 
D) increased productivity in health care.

Question 11

Most economists who have studied the health care industry have concluded that there is

Accepted Answer

A) an underallocation of resources for health care in the United States. 
B) an overallocation of resources for health care in the United States. 
C) insufficient technological progress in the medical industry. 
D) a need for government price controls for physicians' fees. 
A) an underallocation of resources for health care in the United States. 
B) an overallocation of resources for health care in the United States. 
C) insufficient technological progress in the medical industry. 
D) a need for government price controls for physicians' fees.

Question 12

One of the taxes included in the Patient Protection and Affordable Care Act (PPACA) to generate revenue is a tax on junk food.

Accepted Answer

A) True 
 B)False

Question 13

Suppose you go to a doctor, but your health insurance plan reimburses you for only 80 percent of the bill.This is an example of

Accepted Answer

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

Question 14

Which of the following is not one of the new taxes imposed under the PPACA?

Accepted Answer

A) 2.9 percent excise tax on medical devices 
B) 10 percent tax on indoor tanning 
C) 3.8 percent tax on "junk food" 
D) 40 percent tax on employers providing insurance to employees in excess of $10,200 per year for individuals or $27,500 per year for families. 
A) 2.9 percent excise tax on medical devices 
B) 10 percent tax on indoor tanning 
C) 3.8 percent tax on "junk food" 
D) 40 percent tax on employers providing insurance to employees in excess of $10,200 per year for individuals or $27,500 per year for families.

Question 15

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

Accepted Answer

A) defensive medicine 
B) the aging of the population 
C) slow productivity growth in the health care industry 
D) asymmetric information 
A) defensive medicine 
B) the aging of the population 
C) slow productivity growth in the health care industry 
D) asymmetric information

Question 16

Health savings accounts enable individuals who have high-deductible private insurance to place tax-free dollars into special accounts that can be used to pay for medical expenses.

Accepted Answer

A) True 
 B)False

Question 17

One major difference between PPOs (preferred providers organizations) and HMOs (health maintenance organizations) is that

Accepted Answer

A) PPOs set rates for various medical services or procedures, while HMOs allow their doctors and clinics to set their own rates. 
B) PPOs seek to reduce health care costs by controlling prices, while HMOs seek to reduce costs by restricting quantity consumed. 
C) HMOs employ their own physicians or contract for specialized services with outside providers, while PPOs have arrangements with a network of providers. 
D) HMOs seek to reduce costs by capping the rates for various services, while PPOs seek to ration health care by having waiting periods. 
A) PPOs set rates for various medical services or procedures, while HMOs allow their doctors and clinics to set their own rates. 
B) PPOs seek to reduce health care costs by controlling prices, while HMOs seek to reduce costs by restricting quantity consumed. 
C) HMOs employ their own physicians or contract for specialized services with outside providers, while PPOs have arrangements with a network of providers. 
D) HMOs seek to reduce costs by capping the rates for various services, while PPOs seek to ration health care by having waiting periods.

Question 18

Managed-care organizations attempt to control their enrolled members' use of health care as a way of containing costs.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following provisions of the PPACA do proponents expect to reduce the growth of health care spending?

Accepted Answer

A) prohibiting insurers from dropping or denying individuals with preexisting conditions 
B) allowing individuals to purchase coverage through insurance exchanges 
C) subsidizing purchases of insurance for those complying with the personal mandate 
D) expanding access to Medicaid coverage 
A) prohibiting insurers from dropping or denying individuals with preexisting conditions 
B) allowing individuals to purchase coverage through insurance exchanges 
C) subsidizing purchases of insurance for those complying with the personal mandate 
D) expanding access to Medicaid coverage

Question 20

The main purpose of HMOs and PPOs is to

Accepted Answer

A) reduce health care costs for employers and their employees. 
B) reduce medical malpractice suits. 
C) enable groups of physicians to increase their fees. 
D) direct patients to specialists rather than to more expensive primary-care physicians. 
A) reduce health care costs for employers and their employees. 
B) reduce medical malpractice suits. 
C) enable groups of physicians to increase their fees. 
D) direct patients to specialists rather than to more expensive primary-care physicians.

Exam 24: Health Care

Rising health care costs have prompted workers to change jobs with greater frequency.

A decrease in the demand for health care would most likely result from

Rising health care costs have the following implications, except

Employers in the U.S.started offering health insurance as a fringe benefit to their employees during World War II as a way of getting around the wage controls that were in effect then.

The Patient Protection and Affordable Care Act (PPACA) of 2010 is designed to address a wide-ranging set of issues including the following, except

The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine.

Monthly premiums for Medicare insurance that private individuals pay cover how much of the cost of benefits provided by the program?

As a percentage of GDP, U.S.health care spending is higher than that of any other major industrial country.

Health savings accounts (HSAs), implemented by the 2003 Medicare law,

An increase in the demand for health care would most likely result from

Most economists who have studied the health care industry have concluded that there is

One of the taxes included in the Patient Protection and Affordable Care Act (PPACA) to generate revenue is a tax on junk food.

Suppose you go to a doctor, but your health insurance plan reimburses you for only 80 percent of the bill.This is an example of

Which of the following is not one of the new taxes imposed under the PPACA?

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

Health savings accounts enable individuals who have high-deductible private insurance to place tax-free dollars into special accounts that can be used to pay for medical expenses.

One major difference between PPOs (preferred providers organizations) and HMOs (health maintenance organizations) is that

Managed-care organizations attempt to control their enrolled members' use of health care as a way of containing costs.

Which of the following provisions of the PPACA do proponents expect to reduce the growth of health care spending?

The main purpose of HMOs and PPOs is to

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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