Question 1

The provision of health insurance leads to a deadweight loss due to an overallocation of resources to health care.

Accepted Answer

A) True 
 B)False

Question 2

The so-called government tax subsidy for health insurance comes in the form of

Accepted Answer

A) health-insurance benefits to employees that are treated as tax-exempt income. 
B) employer-provided insurance policies that are part of employees' compensation. 
C) government subsidies to households in the form of Medicare and Medicaid. 
D) subsidies provided to firms for offering health insurance coverage to employees. 
A) health-insurance benefits to employees that are treated as tax-exempt income. 
B) employer-provided insurance policies that are part of employees' compensation. 
C) government subsidies to households in the form of Medicare and Medicaid. 
D) subsidies provided to firms for offering health insurance coverage to employees.

Question 3

In 2007, approximately what percentage of people in the United States with private health insurance received it as an employer-provided benefit?

Accepted Answer

A) 35 
B) 50 
C) 88 
D) 95 
A) 35 
B) 50 
C) 88 
D) 95

Question 4

Roughly what portion of U.S.total health spending is paid for by private and public insurance?

Accepted Answer

A) one-tenth 
B) one-fourth 
C) four-fifths 
D) one-half 
A) one-tenth 
B) one-fourth 
C) four-fifths 
D) one-half

Question 5

The twin problems of the U.S.health care industry are

Accepted Answer

A) rapidly rising costs and unequal access to health care. 
B) declining quality of health care and the duplication of specialized equipment at hospitals. 
C) declining per capita spending on health care and the moral hazard problem. 
D) the decline in the number of family physicians and the failure to vaccinate children. 
A) rapidly rising costs and unequal access to health care. 
B) declining quality of health care and the duplication of specialized equipment at hospitals. 
C) declining per capita spending on health care and the moral hazard problem. 
D) the decline in the number of family physicians and the failure to vaccinate children.

Question 6

The heavy reliance on private health insurance in the U.S.began during World War II, as a

Accepted Answer

A) legal requirement for employment. 
B) patriotic duty of firms. 
C) way of imitating European employment practices. 
D) response by employers to the wage controls in effect then. 
A) legal requirement for employment. 
B) patriotic duty of firms. 
C) way of imitating European employment practices. 
D) response by employers to the wage controls in effect then.

Question 7

Approximately how many millions of Americans did not have health insurance coverage in 2015?

Accepted Answer

A) 24 
B) 30 
C) 49 
D) 63 
A) 24 
B) 30 
C) 49 
D) 63

Question 8

Changes in the average age of the U.S.population over the past decade have decreased the demand for health care.

Accepted Answer

A) True 
 B)False

Question 9

A health care organization that contracts with employers to provide health insurance to their workers, and hires doctors and other groups to provide health care for the workers who are insured 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 10

(Consider This) PPACA requirements for health insurance rates created incentives for

Accepted Answer

A) all uninsured people to purchase health insurance and then overuse the health care services. 
B) companies to price insurance according to risk profiles. 
C) older people to purchase, but younger people to decline, health insurance offered through insurance exchanges. 
D) younger people to purchase, but older people to decline, health insurance offered through insurance exchanges. 
A) all uninsured people to purchase health insurance and then overuse the health care services. 
B) companies to price insurance according to risk profiles. 
C) older people to purchase, but younger people to decline, health insurance offered through insurance exchanges. 
D) younger people to purchase, but older people to decline, health insurance offered through insurance exchanges.

Question 11

The table shows the hypothetical demand and supply schedule for health care.Assume that health insurance pays two-thirds of the cost of health care.For the consumer, the price and quantity of health care consumed would then be

Accepted Answer

A) $300 and 400 units. 
B) $300 and 600 units. 
C) $200 and 700 units. 
D) $200 and 300 units. 
A) $300 and 400 units. 
B) $300 and 600 units. 
C) $200 and 700 units. 
D) $200 and 300 units.

Question 12

Singapore's health care system is identified by critics of the PPACA as one good alternative system to study and emulate.Singapore does not have which of the following characteristics?

Accepted Answer

A) Singapore has among the world's lowest infant mortality rates. 
B) Singapore spends about the same on health care per person as the U.S., but, unlike the U.S., it ranks among the top in every health-quality category monitored by the World Health 
C) Singapore has among the world's highest life expectancies. 
D) Singapore spends less than 5 percent of its GDP on health care. 
A) Singapore has among the world's lowest infant mortality rates. 
B) Singapore spends about the same on health care per person as the U.S., but, unlike the U.S., it ranks among the top in every health-quality category monitored by the World Health 
C) Singapore has among the world's highest life expectancies. 
D) Singapore spends less than 5 percent of its GDP on health care.

Question 13

Which of the following statements is correct?

Accepted Answer

A) Limited access to the health care system is a major cause of rising health care costs. 
B) Rising health care costs are a major cause of limited access to the health care system. 
C) Rising health care costs have forced employers to raise real wages above labor productivity. 
D) The tax subsidy that government provides for health care causes health care to be underconsumed. 
A) Limited access to the health care system is a major cause of rising health care costs. 
B) Rising health care costs are a major cause of limited access to the health care system. 
C) Rising health care costs have forced employers to raise real wages above labor productivity. 
D) The tax subsidy that government provides for health care causes health care to be underconsumed.

Question 14

Economists argue that in treating patients,

Accepted Answer

A) physicians should use any test or procedures that might help the patient. 
B) health care should not be rationed by physicians, because it is an entitlement or right. 
C) both benefits and costs should be taken into account by physicians. 
D) physicians should use any test or procedure whose marginal benefit is positive. 
A) physicians should use any test or procedures that might help the patient. 
B) health care should not be rationed by physicians, because it is an entitlement or right. 
C) both benefits and costs should be taken into account by physicians. 
D) physicians should use any test or procedure whose marginal benefit is positive.

Question 15

The Patient Protection and Affordable Care Act prohibits insurance companies from denying coverage to anyone on the basis of a preexisting medical condition.

Accepted Answer

A) True 
 B)False

Question 16

Since 1960, health care costs in the United States have risen absolutely but remained constant as a percentage of gross domestic product.

Accepted Answer

A) True 
 B)False

Question 17

Insurance exchanges

Accepted Answer

A) are government-regulated markets where individuals can purchase health insurance to satisfy the personal mandate provision of the PPACA. 
B) are expected to significantly increase health care costs by expanding government regulation. 
C) are government-regulated markets where prices are set directly by federal regulators. 
D) allow patients to get medical treatment when away from the providers covered by their regular health insurance. 
A) are government-regulated markets where individuals can purchase health insurance to satisfy the personal mandate provision of the PPACA. 
B) are expected to significantly increase health care costs by expanding government regulation. 
C) are government-regulated markets where prices are set directly by federal regulators. 
D) allow patients to get medical treatment when away from the providers covered by their regular health insurance.

Question 18

Health maintenance organizations (HMOs)

Accepted Answer

A) are based on the traditional fee-for-service system of paying physicians. 
B) charge a fixed amount per member, hire many of their own physicians, and provide health services only to members. 
C) are also known as preferred provider organizations. 
D) are illegal in several states. 
A) are based on the traditional fee-for-service system of paying physicians. 
B) charge a fixed amount per member, hire many of their own physicians, and provide health services only to members. 
C) are also known as preferred provider organizations. 
D) are illegal in several states.

Question 19

Studies in industrially advanced nations indicate that a 3 percent increase in incomes will generate a

Accepted Answer

A) 1 percent increase in the amount of health care demanded. 
B) 1.5 percent increase in the amount of health care demanded. 
C) 3 percent increase in the amount of health care demanded. 
D) 6 percent increase in the amount of health care demanded. 
A) 1 percent increase in the amount of health care demanded. 
B) 1.5 percent increase in the amount of health care demanded. 
C) 3 percent increase in the amount of health care demanded. 
D) 6 percent increase in the amount of health care demanded.

Question 20

Health maintenance organizations (HMOs) are like health clubs that operate facilities where people can exercise and get physical training.

Accepted Answer

A) True 
 B)False

Exam 24: Health Care

The provision of health insurance leads to a deadweight loss due to an overallocation of resources to health care.

The so-called government tax subsidy for health insurance comes in the form of

In 2007, approximately what percentage of people in the United States with private health insurance received it as an employer-provided benefit?

Roughly what portion of U.S.total health spending is paid for by private and public insurance?

The twin problems of the U.S.health care industry are

The heavy reliance on private health insurance in the U.S.began during World War II, as a

Approximately how many millions of Americans did not have health insurance coverage in 2015?

Changes in the average age of the U.S.population over the past decade have decreased the demand for health care.

A health care organization that contracts with employers to provide health insurance to their workers, and hires doctors and other groups to provide health care for the workers who are insured is a

(Consider This) PPACA requirements for health insurance rates created incentives for

The table shows the hypothetical demand and supply schedule for health care.Assume that health insurance pays two-thirds of the cost of health care.For the consumer, the price and quantity of health care consumed would then be

Singapore's health care system is identified by critics of the PPACA as one good alternative system to study and emulate.Singapore does not have which of the following characteristics?

Which of the following statements is correct?

Economists argue that in treating patients,

The Patient Protection and Affordable Care Act prohibits insurance companies from denying coverage to anyone on the basis of a preexisting medical condition.

Since 1960, health care costs in the United States have risen absolutely but remained constant as a percentage of gross domestic product.

Insurance exchanges

Health maintenance organizations (HMOs)

Studies in industrially advanced nations indicate that a 3 percent increase in incomes will generate a

Health maintenance organizations (HMOs) are like health clubs that operate facilities where people can exercise and get physical training.

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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