Question 1

Which of the following was not an objection raised by opponents of the Patient Protection and Affordable Care Act?

Accepted Answer

A) The revenue generated by the new taxes in the PPACA would be insufficient to cover costs of the program. 
B) The PPACA moves the United States closer to creating a national health insurance system with nonprice rationing of health care. 
C) The subsidies would lead to higher prices and increased consumption of health care. 
D) The percentage of health care spending coming directly out of consumers' pockets would increase. 
A) The revenue generated by the new taxes in the PPACA would be insufficient to cover costs of the program. 
B) The PPACA moves the United States closer to creating a national health insurance system with nonprice rationing of health care. 
C) The subsidies would lead to higher prices and increased consumption of health care. 
D) The percentage of health care spending coming directly out of consumers' pockets would increase.

Question 2

The prominence of employer-provided health insurance in the U.S. is one major cause of the overconsumption and rapidly rising costs of health care in the country.

Accepted Answer

A) True 
 B)False

Question 3

Those without any health insurance in the U.S. tend to be the following groups, except

Accepted Answer

A) those who are in excellent health and those with the poorest health. 
B) workers in small firms. 
C) minimum-wage workers. 
D) those receiving Social Security payments. 
A) those who are in excellent health and those with the poorest health. 
B) workers in small firms. 
C) minimum-wage workers. 
D) those receiving Social Security payments.

Question 4

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 5

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 6

What is the difference between a deductible and a copayment as it applies to medical insurance?

Accepted Answer

A deductible is the dollar sum of costs

Question 7

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 8

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 9

In 2017, some 29 million Americans did not have health insurance.

Accepted Answer

A) True 
 B)False

Question 10

Describe the origins and reasons for the establishment of health savings accounts.

Accepted Answer

A federal law enacted in 2003 establishe

Question 11

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 12

Employer-provided private health insurance in the United States has resulted in

Accepted Answer

A) incentives that encourage the overuse of health care. 
B) incentives that discourage the use of health care, and overall poorer health. 
C) lower costs of health care as providers better achieve economies of scale. 
D) comprehensive coverage of the U.S. population, with few lacking access to adequate health care. 
A) incentives that encourage the overuse of health care. 
B) incentives that discourage the use of health care, and overall poorer health. 
C) lower costs of health care as providers better achieve economies of scale. 
D) comprehensive coverage of the U.S. population, with few lacking access to adequate health care.

Question 13

The "too much of a good thing" situation in health care in the U.S. is a result of the following causes, except

Accepted Answer

A) the information asymmetry between health care providers and consumers. 
B) the way health care spending is financed in the U.S. 
C) the interaction between insurance and technological progress in the health care industry. 
D) the rising wages of health care workers. 
A) the information asymmetry between health care providers and consumers. 
B) the way health care spending is financed in the U.S. 
C) the interaction between insurance and technological progress in the health care industry. 
D) the rising wages of health care workers.

Question 14

Explain the four factors that cause the demand for health care to be price inelastic.

Accepted Answer

The price elasticity of demand for healt

Question 15

Which person in the following list is least likely to have health care insurance?

Accepted Answer

A) a disabled person 
B) a temporary worker in a bank 
C) an accountant employed by a large corporation 
D) a person who receives Social Security benefits 
A) a disabled person 
B) a temporary worker in a bank 
C) an accountant employed by a large corporation 
D) a person who receives Social Security benefits

Question 16

Some employers have reacted to rising health care costs by hiring more part-time and temporary workers.

Accepted Answer

A) True 
 B)False

Question 17

As a percentage of GDP, U.S. health care spending is

Accepted Answer

A) higher than that for Germany and Japan but lower than that of the United Kingdom and Sweden. 
B) higher than for any other major industrial country. 
C) lower than that for Canada. 
D) nearly identical to that of the other major industrial nations. 
A) higher than that for Germany and Japan but lower than that of the United Kingdom and Sweden. 
B) higher than for any other major industrial country. 
C) lower than that for Canada. 
D) nearly identical to that of the other major industrial nations.

Question 18

The medically uninsured may wait until their illness reaches a critical stage before going to the hospital for admittance or emergency care. Hospitals in the U.S. provide how much of these uncompensated, or "free," health care services per year?

Accepted Answer

A) about $6 billion 
B) about $12 billion 
C) about $40 billion 
D) about $65 billion 
A) about $6 billion 
B) about $12 billion 
C) about $40 billion 
D) about $65 billion

Question 19

About what percentage of total health care spending went to doctors and hospitals (excluding nursing homes)in 2017?

Accepted Answer

A) 67 percent 
B) 53 percent 
C) 33 percent 
D) 20 percent 
A) 67 percent 
B) 53 percent 
C) 33 percent 
D) 20 percent

Question 20

About what percentage of the U.S. population had no health insurance for the entire year in 2017?

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

Exam 24: Health Care

Which of the following was not an objection raised by opponents of the Patient Protection and Affordable Care Act?

The prominence of employer-provided health insurance in the U.S. is one major cause of the overconsumption and rapidly rising costs of health care in the country.

Those without any health insurance in the U.S. tend to be the following groups, except

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

Rising health care costs have the following implications, except

What is the difference between a deductible and a copayment as it applies to medical insurance?

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

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

In 2017, some 29 million Americans did not have health insurance.

Describe the origins and reasons for the establishment of health savings accounts.

Which of the following statements is correct?

Employer-provided private health insurance in the United States has resulted in

The "too much of a good thing" situation in health care in the U.S. is a result of the following causes, except

Explain the four factors that cause the demand for health care to be price inelastic.

Which person in the following list is least likely to have health care insurance?

Some employers have reacted to rising health care costs by hiring more part-time and temporary workers.

As a percentage of GDP, U.S. health care spending is

The medically uninsured may wait until their illness reaches a critical stage before going to the hospital for admittance or emergency care. Hospitals in the U.S. provide how much of these uncompensated, or "free," health care services per year?

About what percentage of total health care spending went to doctors and hospitals (excluding nursing homes)in 2017?

About what percentage of the U.S. population had no health insurance for the entire year in 2017?

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

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Pure Monopoly

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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

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The Balance of Payments, Exchange Rates, and Trade Deficits

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