Question 1

Subsidies to encourage hospitals and physicians to adopt electronic medical records have resulted in which of the following?

Accepted Answer

A) improved care for a greater number of patients because of the efficiency gains 
B) reduced health care costs because of the efficiency gains in record keeping 
C) more patients seen but at a higher cost because of the high fixed cost of the recording devices 
D) less care at higher costs, as the extensive record-keeping process reduces efficiency 
A) improved care for a greater number of patients because of the efficiency gains 
B) reduced health care costs because of the efficiency gains in record keeping 
C) more patients seen but at a higher cost because of the high fixed cost of the recording devices 
D) less care at higher costs, as the extensive record-keeping process reduces efficiency

Question 2

One way that the Patient Protection and Affordable Care Act (PPACA)hopes to foster competition among health insurance companies is through so-called insurance exchanges.

Accepted Answer

A) True 
 B)False

Question 3

Other things equal, increased emphasis on providing the best possible medical care for all, regardless of income, will

Accepted Answer

A) increase the demand for health care. 
B) increase the supply of health care. 
C) have no effect. 
D) decrease the demand for health care. 
A) increase the demand for health care. 
B) increase the supply of health care. 
C) have no effect. 
D) decrease the demand for health care.

Question 4

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 5

Rapidly rising U.S. health care costs have

Accepted Answer

A) forced the growth of wages to keep pace. 
B) encouraged outsourcing. 
C) caused some employers to use more part-time and temporary workers. 
D) done all of these. 
A) forced the growth of wages to keep pace. 
B) encouraged outsourcing. 
C) caused some employers to use more part-time and temporary workers. 
D) done all of these.

Question 6

Reasons for the rapid rise in demand for health care despite steeply rising prices include the following, except

Accepted Answer

A) people regarding health care as an entitlement or a right. 
B) imperfect information among consumers of health care. 
C) third-party insurance payments shielding consumers from the true cost of health care. 
D) high income-elasticity of the demand for health care services. 
A) people regarding health care as an entitlement or a right. 
B) imperfect information among consumers of health care. 
C) third-party insurance payments shielding consumers from the true cost of health care. 
D) high income-elasticity of the demand for health care services.

Question 7

All of the following are designed to reduce health care expenses for consumers except

Accepted Answer

A) HMOs. 
B) PPOs. 
C) the DRG payment system. 
D) the fee-for-service system. 
A) HMOs. 
B) PPOs. 
C) the DRG payment system. 
D) the fee-for-service system.

Question 8

The rising prices, quantities, and costs of health care in the U.S. are the result of

Accepted Answer

A) demand for health care increasing faster than supply. 
B) supply of health care decreasing. 
C) supply of health care decreasing faster than demand. 
D) supply of health care decreasing coupled with demand increasing. 
A) demand for health care increasing faster than supply. 
B) supply of health care decreasing. 
C) supply of health care decreasing faster than demand. 
D) supply of health care decreasing coupled with demand increasing.

Question 9

U.S. hospitals provide a significant amount of uncompensated, or "free," health care every year to the uninsured poor who are rushed in for emergency or critical care.

Accepted Answer

A) True 
 B)False

Question 10

Refer to the diagram, which shows the market for U.S. health care. Other things equal, which of the following would shift the supply curve for medical care from S₂ to S₁?

Accepted Answer

A) an aging population 
B) significant cost-increasing medical technology 
C) expansion of the Medicare program to include prescription drugs 
D) lower medical malpractice insurance premiums 
A) an aging population 
B) significant cost-increasing medical technology 
C) expansion of the Medicare program to include prescription drugs 
D) lower medical malpractice insurance premiums

Question 11

Health care spending in the next 10 years is projected to grow at an annual rate of about

Accepted Answer

A) 2.5 percent. 
B) 5.5 percent. 
C) 14.2 percent. 
D) 20 percent. 
A) 2.5 percent. 
B) 5.5 percent. 
C) 14.2 percent. 
D) 20 percent.

Question 12

Which of the following is a demand-increasing factor in the health care market?

Accepted Answer

A) rising incomes 
B) the aging of the population 
C) asymmetric information 
D) all of these 
A) rising incomes 
B) the aging of the population 
C) asymmetric information 
D) all of these

Question 13

The prominence of employer-provided health insurance in the U.S. has had the following major consequences, except

Accepted Answer

A) overuse of health care services. 
B) rapidly rising prices of health care. 
C) reform efforts have mostly focused on regulation of health insurance. 
D) heightened awareness of employees about the true costs of their health care. 
A) overuse of health care services. 
B) rapidly rising prices of health care. 
C) reform efforts have mostly focused on regulation of health insurance. 
D) heightened awareness of employees about the true costs of their health care.

Question 14

Health savings accounts enable individuals who have high-deductible private insurance to place tax-free dollars into special accounts that can be used to pay for medical expenses.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following persons is most likely to be insured for health care?

Accepted Answer

A) a minimum-wage teenager working for a fast-food restaurant 
B) a skilled worker employed by a large multinational corporation 
C) an unemployed retail clerk 
D) a part-time groundskeeper for a small manufacturing plant 
A) a minimum-wage teenager working for a fast-food restaurant 
B) a skilled worker employed by a large multinational corporation 
C) an unemployed retail clerk 
D) a part-time groundskeeper for a small manufacturing plant

Question 16

The health care industry encompasses the following sectors, except

Accepted Answer

A) medical laboratories. 
B) nursing homes. 
C) nonprescription drugs. 
D) health clubs. 
A) medical laboratories. 
B) nursing homes. 
C) nonprescription drugs. 
D) health clubs.

Question 17

Which of the following is a law passed in the last 20 years relating to health care?

Accepted Answer

A) establishment of health maintenance organizations to reduce health care costs 
B) establishment of deductibles and copayments in health insurance policies 
C) establishment of health savings accounts (HSAs)to promote saving for routine medical expenses 
D) establishment of fixed Medicare payment to hospitals based on one of several hundred diagnostic categories 
A) establishment of health maintenance organizations to reduce health care costs 
B) establishment of deductibles and copayments in health insurance policies 
C) establishment of health savings accounts (HSAs)to promote saving for routine medical expenses 
D) establishment of fixed Medicare payment to hospitals based on one of several hundred diagnostic categories

Question 18

Some insurance companies have teamed with hospitals and doctors to provide discounts for their services. The lists of cooperating doctors and hospitals are known as

Accepted Answer

A) health maintenance organizations. 
B) preferred provider organizations. 
C) diagnosis-related groups. 
D) health alliances. 
A) health maintenance organizations. 
B) preferred provider organizations. 
C) diagnosis-related groups. 
D) health alliances.

Question 19

In the past several decades, U.S. health care expenditures have

Accepted Answer

A) risen absolutely but declined as a percentage of GDP. 
B) declined absolutely but risen as a percentage of GDP. 
C) risen absolutely and as a percentage of GDP. 
D) declined absolutely and as a percentage of GDP. 
A) risen absolutely but declined as a percentage of GDP. 
B) declined absolutely but risen as a percentage of GDP. 
C) risen absolutely and as a percentage of GDP. 
D) declined absolutely and as a percentage of GDP.

Question 20

Evaluate the statement: "Americans should be pleased with the advances in U.S. health care because it improves the overall standard of living."

Accepted Answer

The statement is not exactly correct; th

Exam 24: Health Care

Subsidies to encourage hospitals and physicians to adopt electronic medical records have resulted in which of the following?

One way that the Patient Protection and Affordable Care Act (PPACA)hopes to foster competition among health insurance companies is through so-called insurance exchanges.

Other things equal, increased emphasis on providing the best possible medical care for all, regardless of income, will

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

Rapidly rising U.S. health care costs have

Reasons for the rapid rise in demand for health care despite steeply rising prices include the following, except

All of the following are designed to reduce health care expenses for consumers except

The rising prices, quantities, and costs of health care in the U.S. are the result of

U.S. hospitals provide a significant amount of uncompensated, or "free," health care every year to the uninsured poor who are rushed in for emergency or critical care.

Refer to the diagram, which shows the market for U.S. health care. Other things equal, which of the following would shift the supply curve for medical care from S₂ to S₁?

Health care spending in the next 10 years is projected to grow at an annual rate of about

Which of the following is a demand-increasing factor in the health care market?

The prominence of employer-provided health insurance in the U.S. has had the following major consequences, except

Health savings accounts enable individuals who have high-deductible private insurance to place tax-free dollars into special accounts that can be used to pay for medical expenses.

Which of the following persons is most likely to be insured for health care?

The health care industry encompasses the following sectors, except

Which of the following is a law passed in the last 20 years relating to health care?

Some insurance companies have teamed with hospitals and doctors to provide discounts for their services. The lists of cooperating doctors and hospitals are known as

In the past several decades, U.S. health care expenditures have

Evaluate the statement: "Americans should be pleased with the advances in U.S. health care because it improves the overall standard of living."

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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