Question 1

Refer to the diagram. Economists would argue that health care should be provided to patients in

Accepted Answer

A) some amount less than Q₁. 
B) amount Q₁. 
C) some amount between Q₁ and Q₂. 
D) amount Q₂. 
A) some amount less than Q₁. 
B) amount Q₁. 
C) some amount between Q₁ and Q₂. 
D) amount Q₂.

Question 2

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 Organization. 
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 Organization. 
C) Singapore has among the world's highest life expectancies. 
D) Singapore spends less than 5 percent of its GDP on health care.

Question 3

Aggregate U.S. health care spending in 2017 was approximately

Accepted Answer

A) 5.2 percent of domestic output (GDP). 
B) 13.1 percent of domestic output (GDP). 
C) 17.9 percent of domestic output (GDP). 
D) 21 percent of domestic output (GDP). 
A) 5.2 percent of domestic output (GDP). 
B) 13.1 percent of domestic output (GDP). 
C) 17.9 percent of domestic output (GDP). 
D) 21 percent of domestic output (GDP).

Question 4

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 5

Some low-income workers are not covered by Medicaid because of the income that they are earning from their jobs.

Accepted Answer

A) True 
 B)False

Question 6

What was the employer mandate in the PPACA. How did firms respond to this?

Accepted Answer

The employer mandate was the requirement

Question 7

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) 18 percent 
B) 35 percent 
C) 44 percent 
D) 21 percent 
A) 18 percent 
B) 35 percent 
C) 44 percent 
D) 21 percent

Question 8

The availability of health insurance tends to

Accepted Answer

A) decrease the quantity of health care demanded and cause an underallocation of resources to the health care industry. 
B) increase the quantity of health care demanded and cause an underallocation of resources to the health care industry. 
C) increase the quantity of health care demanded and cause an overallocation of resources to the health care industry. 
D) decrease the quantity of health care demanded and cause an overallocation of resources to the health care industry. 
A) decrease the quantity of health care demanded and cause an underallocation of resources to the health care industry. 
B) increase the quantity of health care demanded and cause an underallocation of resources to the health care industry. 
C) increase the quantity of health care demanded and cause an overallocation of resources to the health care industry. 
D) decrease the quantity of health care demanded and cause an overallocation of resources to the health care industry.

Question 9

The Patient Protection and Affordable Care Act (PPACA)includes the establishment of "insurance exchanges" in each state, the purpose of which is to

Accepted Answer

A) create a monopoly or oligopoly of insurance companies in each state. 
B) fix insurance premiums, similar to public utilities. 
C) foster competition among insurance companies. 
D) nationalize the insurance industry in each state. 
A) create a monopoly or oligopoly of insurance companies in each state. 
B) fix insurance premiums, similar to public utilities. 
C) foster competition among insurance companies. 
D) nationalize the insurance industry in each state.

Question 10

Refer to the graph of a hypothetical market for health care. What would be the difference between the marginal cost and the marginal benefit of health care when the 450th unit is consumed?

Accepted Answer

A) $10 
B) $20 
C) $40 
D) $60 
A) $10 
B) $20 
C) $40 
D) $60

Question 11

The table gives supply and demand data for a certain elective surgical procedure. If suppliers provide the quantity of health care demanded and insurance pays 50 percent of the remaining equilibrium price after a $1,000 deductible is satisfied, the quantity of health care demanded will be

Accepted Answer

A) 4,000. 
B) 7,000. 
C) 11,000. 
D) 16,000. 
A) 4,000. 
B) 7,000. 
C) 11,000. 
D) 16,000.

Question 12

What are the two major problems facing the health care system of the United States?

Accepted Answer

A) the inadequate supply of physicians and the need to build more hospitals 
B) increasing the demand for and supply of health care 
C) the rapid rate of technological change and an unhealthy population 
D) the need to control costs and make health care accessible 
A) the inadequate supply of physicians and the need to build more hospitals 
B) increasing the demand for and supply of health care 
C) the rapid rate of technological change and an unhealthy population 
D) the need to control costs and make health care accessible

Question 13

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 14

Refer to the graph for the health care market. The marginal cost of health care would be greater than the marginal benefit if the quantity consumed were

Accepted Answer

A) 100. 
B) 200. 
C) 300. 
D) 400. 
A) 100. 
B) 200. 
C) 300. 
D) 400.

Question 15

Why is there an asymmetric information problem in the market for health care?

Accepted Answer

A) The patient, not the physician, knows most about the amount and type of health care to be provided. 
B) The government, not the physician, knows most about the amount and type of health care to be provided. 
C) Insurance companies, not the physician, know most about the type of health care to be provided. 
D) The physician, not the patient, knows most about the amount and type of health care to be provided. 
A) The patient, not the physician, knows most about the amount and type of health care to be provided. 
B) The government, not the physician, knows most about the amount and type of health care to be provided. 
C) Insurance companies, not the physician, know most about the type of health care to be provided. 
D) The physician, not the patient, knows most about the amount and type of health care to be provided.

Question 16

The table shows the hypothetical demand and supply schedule for health care. If there was no health insurance, the equilibrium price and quantity of health care would be

Accepted Answer

A) $600 and 300 units. 
B) $400 and 400 units. 
C) $500 and 400 units. 
D) $400 and 500 units. 
A) $600 and 300 units. 
B) $400 and 400 units. 
C) $500 and 400 units. 
D) $400 and 500 units.

Question 17

Refer to the demand and supply diagram, which relates to the health care market. If suppliers provide whatever quantity of health care is demanded, health care insurance causes

Accepted Answer

A) resources to be underallocated to the health care industry. 
B) resources to be overallocated to the health care industry. 
C) health care to be underconsumed. 
D) the price of health care to the insured to be higher than the market price. 
A) resources to be underallocated to the health care industry. 
B) resources to be overallocated to the health care industry. 
C) health care to be underconsumed. 
D) the price of health care to the insured to be higher than the market price.

Question 18

One of the special features of the health care market is asymmetric information. Which of the following is not characteristic of asymmetric information?

Accepted Answer

A) The doctor (supplier)tells the patient (demander)what to purchase 
B) Buyers have little understanding of services they are asked to consume 
C) Fee-for-pay arrangements lead to excessive quantities of services prescribed 
D) Consumers pay lower out-of-pocket costs 
A) The doctor (supplier)tells the patient (demander)what to purchase 
B) Buyers have little understanding of services they are asked to consume 
C) Fee-for-pay arrangements lead to excessive quantities of services prescribed 
D) Consumers pay lower out-of-pocket costs

Question 19

Which of the following financed the largest share of health care spending in the U.S. in 2017?

Accepted Answer

A) Medicare 
B) Medicaid 
C) copayments and deductions paid by patients 
D) military and other public insurance (excl. Medicare and Medicaid) 
A) Medicare 
B) Medicaid 
C) copayments and deductions paid by patients 
D) military and other public insurance (excl. Medicare and Medicaid)

Question 20

In what ways does the United States have the best health care system in the world?

Accepted Answer

There is general agreement that medical

Exam 24: Health Care

Refer to the diagram. Economists would argue that health care should be provided to patients in

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?

Aggregate U.S. health care spending in 2017 was approximately

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?

Some low-income workers are not covered by Medicaid because of the income that they are earning from their jobs.

What was the employer mandate in the PPACA. How did firms respond to this?

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?

The availability of health insurance tends to

The Patient Protection and Affordable Care Act (PPACA)includes the establishment of "insurance exchanges" in each state, the purpose of which is to

Refer to the graph of a hypothetical market for health care. What would be the difference between the marginal cost and the marginal benefit of health care when the 450th unit is consumed?

The table gives supply and demand data for a certain elective surgical procedure. If suppliers provide the quantity of health care demanded and insurance pays 50 percent of the remaining equilibrium price after a $1,000 deductible is satisfied, the quantity of health care demanded will be

What are the two major problems facing the health care system of the United States?

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

Refer to the graph for the health care market. The marginal cost of health care would be greater than the marginal benefit if the quantity consumed were

Why is there an asymmetric information problem in the market for health care?

The table shows the hypothetical demand and supply schedule for health care. If there was no health insurance, the equilibrium price and quantity of health care would be

Refer to the demand and supply diagram, which relates to the health care market. If suppliers provide whatever quantity of health care is demanded, health care insurance causes

One of the special features of the health care market is asymmetric information. Which of the following is not characteristic of asymmetric information?

Which of the following financed the largest share of health care spending in the U.S. in 2017?

In what ways does the United States have the best health care system in the world?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, 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

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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