Question 1

All of the following factors lead to overconsumption of health care, except

Accepted Answer

A) the practice of defensive medicine. 
B) health insurance that pays most of the health care costs. 
C) a government tax subsidy on employer-financed health insurance. 
D) rising incomes resulting from economic growth. 
A) the practice of defensive medicine. 
B) health insurance that pays most of the health care costs. 
C) a government tax subsidy on employer-financed health insurance. 
D) rising incomes resulting from economic growth.

Question 2

Data on the income elasticity of demand for health care suggest that health care is a(n)

Accepted Answer

A) inelastic good. 
B) private good. 
C) public good. 
D) normal good. 
A) inelastic good. 
B) private good. 
C) public good. 
D) normal good.

Question 3

The Patient Protection and Affordable Care Act (PPACA)was signed into law by

Accepted Answer

A) President Trump. 
B) President Clinton. 
C) President G. W. Bush. 
D) President Obama. 
A) President Trump. 
B) President Clinton. 
C) President G. W. Bush. 
D) President Obama.

Question 4

The fundamental problem associated with the U.S. health care system is that

Accepted Answer

A) the financing of health care through insurance has resulted in the underallocation of resources to the health care industry. 
B) frivolous malpractice suits have increased malpractice insurance premiums for doctors. 
C) at the margin, the value of health care services may be less than the value of alternative goods and services. 
D) there are too many general practitioners and not enough specialists. 
A) the financing of health care through insurance has resulted in the underallocation of resources to the health care industry. 
B) frivolous malpractice suits have increased malpractice insurance premiums for doctors. 
C) at the margin, the value of health care services may be less than the value of alternative goods and services. 
D) there are too many general practitioners and not enough specialists.

Question 5

The table gives supply and demand data for a certain elective surgical procedure. Without health insurance, the equilibrium price and quantity would be

Accepted Answer

A) $5,000 and 2,000. 
B) $4,000 and 4,000. 
C) $3,000 and 7,000. 
D) $2,000 and 11,000. 
A) $5,000 and 2,000. 
B) $4,000 and 4,000. 
C) $3,000 and 7,000. 
D) $2,000 and 11,000.

Question 6

Aside from new taxes, the Patient Protection and Affordable Care Act (PPACA)aims to generate revenue by enforcing a personal mandate that requires all individuals not covered by employer- or government-provided health insurance to purchase insurance.

Accepted Answer

A) True 
 B)False

Question 7

Refer to the demand and supply diagram, which relates to the health care market. Without health insurance, the equilibrium price and quantity of health care would be

Accepted Answer

A) P₁ and Q₁. 
B) P₁ and Q₂. 
C) P₂ and Q₂. 
D) P₂ and Q₁. 
A) P₁ and Q₁. 
B) P₁ and Q₂. 
C) P₂ and Q₂. 
D) P₂ and Q₁.

Question 8

Supporters of setting a cap on medical malpractice (or "pain and suffering")awards do not argue which of the following?

Accepted Answer

A) The caps will reduce medical malpractice premiums. 
B) They will help reduce health care costs. 
C) Patients should receive full compensation for losses, but should not be made wealthy solely from the awards. 
D) The cap will improve the overall quality of the health care system. 
A) The caps will reduce medical malpractice premiums. 
B) They will help reduce health care costs. 
C) Patients should receive full compensation for losses, but should not be made wealthy solely from the awards. 
D) The cap will improve the overall quality of the health care system.

Question 9

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 10

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 11

Defensive medicine refers to the idea that

Accepted Answer

A) it is more cost-efficient to prevent illnesses than to cure them. 
B) physicians may require unnecessary testing as a means of protecting themselves against malpractice suits. 
C) doctors know much more about diagnosing and treating illnesses than do health care consumers. 
D) physicians do not advertise their services or fees. 
A) it is more cost-efficient to prevent illnesses than to cure them. 
B) physicians may require unnecessary testing as a means of protecting themselves against malpractice suits. 
C) doctors know much more about diagnosing and treating illnesses than do health care consumers. 
D) physicians do not advertise their services or fees.

Question 12

Proponents of the Patient Protection and Affordable Care Act (PPACA)had the primary goal to

Accepted Answer

A) expand the range of illnesses covered by insurance. 
B) nationalize health care in the country. 
C) extend health insurance coverage to all Americans. 
D) set prices for all health care procedures and services. 
A) expand the range of illnesses covered by insurance. 
B) nationalize health care in the country. 
C) extend health insurance coverage to all Americans. 
D) set prices for all health care procedures and services.

Question 13

Federal tax policy

Accepted Answer

A) treats employer health insurance premiums as taxable income. 
B) subsidizes health insurance and thereby increases the demand for health care. 
C) subsidizes health insurance and thereby decreases the demand for health care. 
D) corrects the overallocation of resources to the health care industry that would otherwise exist. 
A) treats employer health insurance premiums as taxable income. 
B) subsidizes health insurance and thereby increases the demand for health care. 
C) subsidizes health insurance and thereby decreases the demand for health care. 
D) corrects the overallocation of resources to the health care industry that would otherwise exist.

Question 14

The major purpose of Medicare is to

Accepted Answer

A) provide health care services to people on Social Security. 
B) provide health care services to those receiving public assistance. 
C) contain rising health care costs. 
D) make a basic health care package available to all Americans. 
A) provide health care services to people on Social Security. 
B) provide health care services to those receiving public assistance. 
C) contain rising health care costs. 
D) make a basic health care package available to all Americans.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The diagnosis-related group (DRG)system adopted by Medicare since 1983 has had the following effects, except

Accepted Answer

A) hospitals now receive a fixed payment for treating each patient. 
B) the average length of a hospital stay has increased. 
C) more patients are treated on an outpatient basis. 
D) hospitals now have an incentive to restrict the amount of resources used for patients. 
A) hospitals now receive a fixed payment for treating each patient. 
B) the average length of a hospital stay has increased. 
C) more patients are treated on an outpatient basis. 
D) hospitals now have an incentive to restrict the amount of resources used for patients.

Question 17

The Patient Protection and Affordable Care Act (PPACA)attempts to provide health-insurance coverage to low-income people through the following methods, except

Accepted Answer

A) establishing a new government insurance system specifically for the poor. 
B) requiring large employers to cover all their employees, including the poor. 
C) expanding the Medicaid system to cover those whose incomes are less than 133 percent of the poverty level. 
D) providing subsidies to purchase health insurance to those who must buy insurance coverage on their own. 
A) establishing a new government insurance system specifically for the poor. 
B) requiring large employers to cover all their employees, including the poor. 
C) expanding the Medicaid system to cover those whose incomes are less than 133 percent of the poverty level. 
D) providing subsidies to purchase health insurance to those who must buy insurance coverage on their own.

Question 18

In recent decades, the cost of health care has

Accepted Answer

A) risen fast due to both rising prices and increasing quantities of services consumed. 
B) risen solely because of rising prices of health care goods and services. 
C) remained somewhat stable due to rising prices but falling quantities of services consumed. 
D) risen solely because of rising quantities of medical goods and services consumed. 
A) risen fast due to both rising prices and increasing quantities of services consumed. 
B) risen solely because of rising prices of health care goods and services. 
C) remained somewhat stable due to rising prices but falling quantities of services consumed. 
D) risen solely because of rising quantities of medical goods and services consumed.

Question 19

About how many people were employed in the U.S. health care industry in 2017?

Accepted Answer

A) 12 million 
B) 20 million 
C) 34 million 
D) 42 million 
A) 12 million 
B) 20 million 
C) 34 million 
D) 42 million

Question 20

Compared to younger people, those who are 65 and older tend to consume roughly

Accepted Answer

A) twice as much health care. 
B) about the same amount of health care. 
C) three-and-a-half times as much health care. 
D) 10 percent less health care. 
A) twice as much health care. 
B) about the same amount of health care. 
C) three-and-a-half times as much health care. 
D) 10 percent less health care.

Exam 24: Health Care

All of the following factors lead to overconsumption of health care, except

Data on the income elasticity of demand for health care suggest that health care is a(n)

The Patient Protection and Affordable Care Act (PPACA)was signed into law by

The fundamental problem associated with the U.S. health care system is that

The table gives supply and demand data for a certain elective surgical procedure. Without health insurance, the equilibrium price and quantity would be

Aside from new taxes, the Patient Protection and Affordable Care Act (PPACA)aims to generate revenue by enforcing a personal mandate that requires all individuals not covered by employer- or government-provided health insurance to purchase insurance.

Refer to the demand and supply diagram, which relates to the health care market. Without health insurance, the equilibrium price and quantity of health care would be

Supporters of setting a cap on medical malpractice (or "pain and suffering")awards do not argue which of the following?

Insurance exchanges

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

Defensive medicine refers to the idea that

Proponents of the Patient Protection and Affordable Care Act (PPACA)had the primary goal to

Federal tax policy

The major purpose of Medicare is to

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

The diagnosis-related group (DRG)system adopted by Medicare since 1983 has had the following effects, except

The Patient Protection and Affordable Care Act (PPACA)attempts to provide health-insurance coverage to low-income people through the following methods, except

In recent decades, the cost of health care has

About how many people were employed in the U.S. health care industry in 2017?

Compared to younger people, those who are 65 and older tend to consume roughly

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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