Question 1

Political conservatives and liberals:

Accepted Answer

A)  both oppose programs associated with the welfare state. 
B)  generally agree on their support of programs associated with the welfare state but disagree on the appropriate extent of these programs. 
C)  have conflicting views; conservatives support programs associated with the welfare state, while liberals oppose such programs. 
D)  have conflicting views; liberals support programs associated with the welfare state, while conservatives oppose such programs. 
A)  both oppose programs associated with the welfare state. 
B)  generally agree on their support of programs associated with the welfare state but disagree on the appropriate extent of these programs. 
C)  have conflicting views; conservatives support programs associated with the welfare state, while liberals oppose such programs. 
D)  have conflicting views; liberals support programs associated with the welfare state, while conservatives oppose such programs.

Question 2

Sometimes healthy people drop their health insurance, leaving only sicker people to buy insurance. This creates a situation known as:

Accepted Answer

A)  moral hazard. 
B)  an efficient free market outcome. 
C)  adverse selection. 
D)  maximizing profits. 
A)  moral hazard. 
B)  an efficient free market outcome. 
C)  adverse selection. 
D)  maximizing profits.

Question 3

The _____ identifies the level of income at which half of the households in the population earn more and half of the population earns less.

Accepted Answer

A)  median household income 
B)  mean household income 
C)  poverty level 
D)  Gini coefficient 
A)  median household income 
B)  mean household income 
C)  poverty level 
D)  Gini coefficient

Question 4

The percentage of the population that falls below the poverty line is called the:

Accepted Answer

A)  poor rate. 
B)  poverty rate. 
C)  homeless rate. 
D)  absolute number of people in poverty. 
A)  poor rate. 
B)  poverty rate. 
C)  homeless rate. 
D)  absolute number of people in poverty.

Question 5

The rising income gap among highly educated workers in the United States:

Accepted Answer

A)  is an important feature of the increase in income inequality. 
B)  has not been a cause of concern for income inequality policy makers. 
C)  is less of a concern than the effect of increased immigration on income inequality. 
D)  has been present for the past 80 years. 
A)  is an important feature of the increase in income inequality. 
B)  has not been a cause of concern for income inequality policy makers. 
C)  is less of a concern than the effect of increased immigration on income inequality. 
D)  has been present for the past 80 years.

Question 6

Which of the following countries has a single-payer system funded through taxes in which the government is the principal payer of medical bills for all of its citizens?

Accepted Answer

A)  United States 
B)  Canada 
C)  France 
D)  Great Britain 
A)  United States 
B)  Canada 
C)  France 
D)  Great Britain

Question 7

The U.S. government health insurance program for people aged 65 years and older is:

Accepted Answer

A)  Medicare. 
B)  Medicaid. 
C)  the Veterans Administration. 
D)  health savings accounts. 
A)  Medicare. 
B)  Medicaid. 
C)  the Veterans Administration. 
D)  health savings accounts.

Question 8

Which of the following countries gives all of its citizens a choice between private doctors and hospitals and care in a system run directly by the government?

Accepted Answer

A)  United States 
B)  Canada 
C)  France 
D)  Great Britain 
A)  United States 
B)  Canada 
C)  France 
D)  Great Britain

Question 9

Measured by the amount of money spent by the U.S. government, which of the following U.S. welfare programs is the largest?

Accepted Answer

A)  food stamps 
B)  unemployment insurance 
C)  Medicare 
D)  Social Security 
A)  food stamps 
B)  unemployment insurance 
C)  Medicare 
D)  Social Security

Question 10

Unemployment insurance is a(n) _____ that is _____.

Accepted Answer

A)  monetary transfer; means-tested 
B)  monetary transfer; not means-tested 
C)  in-kind benefit; means-tested 
D)  in-kind benefit; not means-tested 
A)  monetary transfer; means-tested 
B)  monetary transfer; not means-tested 
C)  in-kind benefit; means-tested 
D)  in-kind benefit; not means-tested

Question 11

Approximately _____ of Americans have no health insurance.

Accepted Answer

A)  1% to 10% 
B)  11% to 20% 
C)  21% to 50% 
D)  over 50% 
A)  1% to 10% 
B)  11% to 20% 
C)  21% to 50% 
D)  over 50%

Question 12

People with more education have a lower poverty rate.

Accepted Answer

A) True 
 B)False

Question 13

Employment-based insurance:

Accepted Answer

A)  is provided by companies to their employees. 
B)  is provided only to those who are not working. 
C)  consistently runs into the problem of adverse selection death spiral. 
D)  does not receive benefits from the U.S. government. 
A)  is provided by companies to their employees. 
B)  is provided only to those who are not working. 
C)  consistently runs into the problem of adverse selection death spiral. 
D)  does not receive benefits from the U.S. government.

Question 14

Medicare is health insurance coverage provided to:

Accepted Answer

A)  all Americans age 65 and older and is means-tested. 
B)  individuals who fall below the poverty threshold and is means-tested. 
C)  all Americans age 65 and older and is not means-tested. 
D)  individuals who fall below the poverty threshold and is not means-tested. 
A)  all Americans age 65 and older and is means-tested. 
B)  individuals who fall below the poverty threshold and is means-tested. 
C)  all Americans age 65 and older and is not means-tested. 
D)  individuals who fall below the poverty threshold and is not means-tested.

Question 15

The ability-to-pay principle is a good justification for:

Accepted Answer

A)  the welfare state. 
B)  the income tax structure. 
C)  government transfers. 
D)  the welfare state, the income tax structure, and government transfers. 
A)  the welfare state. 
B)  the income tax structure. 
C)  government transfers. 
D)  the welfare state, the income tax structure, and government transfers.

Question 16

To ensure that low and middle income families have health insurance, the Affordable Care Act of 2010 _____ low- and middle-income families _____.

Accepted Answer

A)  provides government subsidies to; to make insurance more affordable 
B)  requires that all; be covered by Medicare 
C)  requires that all; be covered by Medicaid 
D)  forces; to find employers that provide health insurance 
A)  provides government subsidies to; to make insurance more affordable 
B)  requires that all; be covered by Medicare 
C)  requires that all; be covered by Medicaid 
D)  forces; to find employers that provide health insurance

Question 17

Private health insurance is funded by:

Accepted Answer

A)  the government. 
B)  tax contributions to Medicare. 
C)  extremely ill people, who pay very high premiums. 
D)  members of a large pool of individuals, each paying a fixed premium to a private company that agrees to pay some portion of the medical expenses of the members. 
A)  the government. 
B)  tax contributions to Medicare. 
C)  extremely ill people, who pay very high premiums. 
D)  members of a large pool of individuals, each paying a fixed premium to a private company that agrees to pay some portion of the medical expenses of the members.

Question 18

An advantage of employment-based insurance is that it:

Accepted Answer

A)  increases moral hazard. 
B)  increases the likelihood of adverse selection. 
C)  increases government tax revenues. 
D)  receives favorable tax treatment. 
A)  increases moral hazard. 
B)  increases the likelihood of adverse selection. 
C)  increases government tax revenues. 
D)  receives favorable tax treatment.

Question 19

If the median household income in 2010 was $49,445:

Accepted Answer

A)  the average income for a U.S. household was $49,445. 
B)  poverty rates fell during this period. 
C)  half of the households in the United States earned less than $49,445, and half earned more than $49,445. 
D)  incomes in the United States were rising. 
A)  the average income for a U.S. household was $49,445. 
B)  poverty rates fell during this period. 
C)  half of the households in the United States earned less than $49,445, and half earned more than $49,445. 
D)  incomes in the United States were rising.

Question 20

The means-tested U.S. government health insurance program is:

Accepted Answer

A)  Medicare. 
B)  Medicaid. 
C)  the Veterans Administration. 
D)  health savings accounts. 
A)  Medicare. 
B)  Medicaid. 
C)  the Veterans Administration. 
D)  health savings accounts.

Political conservatives and liberals:

Sometimes healthy people drop their health insurance, leaving only sicker people to buy insurance. This creates a situation known as:

The _____ identifies the level of income at which half of the households in the population earn more and half of the population earns less.

The percentage of the population that falls below the poverty line is called the:

The rising income gap among highly educated workers in the United States:

Which of the following countries has a single-payer system funded through taxes in which the government is the principal payer of medical bills for all of its citizens?

The U.S. government health insurance program for people aged 65 years and older is:

Which of the following countries gives all of its citizens a choice between private doctors and hospitals and care in a system run directly by the government?

Measured by the amount of money spent by the U.S. government, which of the following U.S. welfare programs is the largest?

Unemployment insurance is a(n) _ that is _.

Approximately _____ of Americans have no health insurance.

People with more education have a lower poverty rate.

Employment-based insurance:

Medicare is health insurance coverage provided to:

The ability-to-pay principle is a good justification for:

To ensure that low and middle income families have health insurance, the Affordable Care Act of 2010 _ low- and middle-income families _.

Private health insurance is funded by:

An advantage of employment-based insurance is that it:

If the median household income in 2010 was $49,445:

The means-tested U.S. government health insurance program is:

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods Common Resources

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

Exam 18: The Economics of the Welfare

Political conservatives and liberals:

Sometimes healthy people drop their health insurance, leaving only sicker people to buy insurance. This creates a situation known as:

The _____ identifies the level of income at which half of the households in the population earn more and half of the population earns less.

The percentage of the population that falls below the poverty line is called the:

The rising income gap among highly educated workers in the United States:

Which of the following countries has a single-payer system funded through taxes in which the government is the principal payer of medical bills for all of its citizens?

The U.S. government health insurance program for people aged 65 years and older is:

Which of the following countries gives all of its citizens a choice between private doctors and hospitals and care in a system run directly by the government?

Measured by the amount of money spent by the U.S. government, which of the following U.S. welfare programs is the largest?

Unemployment insurance is a(n) _____ that is _____.

Approximately _____ of Americans have no health insurance.

People with more education have a lower poverty rate.

Employment-based insurance:

Medicare is health insurance coverage provided to:

The ability-to-pay principle is a good justification for:

To ensure that low and middle income families have health insurance, the Affordable Care Act of 2010 _____ low- and middle-income families _____.

Private health insurance is funded by:

An advantage of employment-based insurance is that it:

If the median household income in 2010 was $49,445:

The means-tested U.S. government health insurance program is:

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods Common Resources

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

Unemployment insurance is a(n) _ that is _.

To ensure that low and middle income families have health insurance, the Affordable Care Act of 2010 _ low- and middle-income families _.