Question 1

Factors that have hampered the increase in the supply of physicians in the U.S. include the following, except

Accepted Answer

A) actions by doctors' unions, like the AMA. 
B) rising direct expenses for a medical degree. 
C) higher opportunity cost of medical education and training. 
D) rising incomes of physicians. 
A) actions by doctors' unions, like the AMA. 
B) rising direct expenses for a medical degree. 
C) higher opportunity cost of medical education and training. 
D) rising incomes of physicians.

Question 2

About what percentage of health care spending in the U.S. in 2017 was financed by private health insurance?

Accepted Answer

A) 25 percent 
B) 34 percent 
C) 41 percent 
D) 75 percent 
A) 25 percent 
B) 34 percent 
C) 41 percent 
D) 75 percent

Question 3

How are the budgets for the federal, state, and local governments affected by rising health care costs?

Accepted Answer

The budgets of federal, state, and local

Question 4

Because of health insurance, resources are underallocated to the health care industry.

Accepted Answer

A) True 
 B)False

Question 5

The perceived central economic problem associated with the U.S. health care system is

Accepted Answer

A) too many frivolous malpractice lawsuits. 
B) an overabundance of scanning machines. 
C) an overallocation of resources to the system. 
D) that workers lose their insurance when they lose their jobs. 
A) too many frivolous malpractice lawsuits. 
B) an overabundance of scanning machines. 
C) an overallocation of resources to the system. 
D) that workers lose their insurance when they lose their jobs.

Question 6

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. One major consequence of doing this is that hospitals and other providers are then

Accepted Answer

A) reducing the amount of health care services they provide. 
B) passing the uncovered costs on to patients with private health insurance. 
C) denying services to many Medicare and Medicaid patients. 
D) filing for bankruptcy regularly. 
A) reducing the amount of health care services they provide. 
B) passing the uncovered costs on to patients with private health insurance. 
C) denying services to many Medicare and Medicaid patients. 
D) filing for bankruptcy regularly.

Question 7

What was the primary goal of the proponents of the Patient Protection and Affordable Care Act?

Accepted Answer

A) improve the quality of care by reducing medical malpractice 
B) reduce health care costs in the United States by 50 percent 
C) make all U.S. health care publically (government)provided 
D) extend health insurance coverage to all Americans 
A) improve the quality of care by reducing medical malpractice 
B) reduce health care costs in the United States by 50 percent 
C) make all U.S. health care publically (government)provided 
D) extend health insurance coverage to all Americans

Question 8

Which of the following is not an element of the Patient Protection and Affordable Care Act (PPACA)?

Accepted Answer

A) Insurance companies can no longer deny coverage to anyone on the basis of a preexisting condition. 
B) To contain costs, insurance companies may impose annual or lifetime expenditure caps on those that they insure. 
C) All firms with 50 or more employees are required to purchase insurance for their workers or pay a fine 
D) Individuals who are not covered by either government- or employer-provided insurance are required to purchase health insurance for themselves and their dependents 
A) Insurance companies can no longer deny coverage to anyone on the basis of a preexisting condition. 
B) To contain costs, insurance companies may impose annual or lifetime expenditure caps on those that they insure. 
C) All firms with 50 or more employees are required to purchase insurance for their workers or pay a fine 
D) Individuals who are not covered by either government- or employer-provided insurance are required to purchase health insurance for themselves and their dependents

Question 9

Given the availability of the Medicaid program, why are so many poor people uninsured?

Accepted Answer

A) Because only a fixed percentage of the population can participate in Medicaid at any time. 
B) Because many poor people earn enough that they do not qualify for Medicaid. 
C) Because non-income requirements screen many poor people from the program. 
D) Because only native-born Americans are eligible for the program. 
A) Because only a fixed percentage of the population can participate in Medicaid at any time. 
B) Because many poor people earn enough that they do not qualify for Medicaid. 
C) Because non-income requirements screen many poor people from the program. 
D) Because only native-born Americans are eligible for the program.

Question 10

Because employer payments for health insurance are not subject to income or payroll taxes, government in effect provides a subsidy to health care.

Accepted Answer

A) True 
 B)False

Question 11

The health care industry currently absorbs about 17.9 percent of U.S. gross domestic product.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true about health care costs in the United States?

Accepted Answer

A) Costs have risen because increases in the price of health care have more than offset reductions in the quantity of health care provided. 
B) Costs have risen because increases in the quantity of care provided have more than offset price reductions realized through economies of scale. 
C) Costs have risen because both the price of health care and the quantity provided have risen. 
D) Costs have remained relatively stable as price increases have been largely offset by reductions in the quantity provided. 
A) Costs have risen because increases in the price of health care have more than offset reductions in the quantity of health care provided. 
B) Costs have risen because increases in the quantity of care provided have more than offset price reductions realized through economies of scale. 
C) Costs have risen because both the price of health care and the quantity provided have risen. 
D) Costs have remained relatively stable as price increases have been largely offset by reductions in the quantity provided.

Question 13

The reasons why health care costs in countries with public health insurance, like the United Kingdom and Canada, have not risen as much as the costs in the U.S. include the following, except

Accepted Answer

A) setting a cap on costs to ration health care. 
B) waiting or queuing to ration health care. 
C) fixed government budgets for health care, leading to rationing. 
D) expanded coverage as a way to ration health care. 
A) setting a cap on costs to ration health care. 
B) waiting or queuing to ration health care. 
C) fixed government budgets for health care, leading to rationing. 
D) expanded coverage as a way to ration health care.

Question 14

Which of the following is a nationwide Federal health care program available to Social Security beneficiaries and persons with disabilities?

Accepted Answer

A) Medicaid 
B) Medicare 
C) PPOs 
D) HMOs 
A) Medicaid 
B) Medicare 
C) PPOs 
D) HMOs

Question 15

Which of the following is not a reason why the demand for health care in the U.S. is quite price-inelastic?

Accepted Answer

A) People consider health care to be a luxury. 
B) There are only a few, or no, substitutes. 
C) Most consumers do not shop around, preferring a long-term relationship with their doctors. 
D) Most patients have insurance, effectively removing their budget constraint for health care. 
A) People consider health care to be a luxury. 
B) There are only a few, or no, substitutes. 
C) Most consumers do not shop around, preferring a long-term relationship with their doctors. 
D) Most patients have insurance, effectively removing their budget constraint for health care.

Question 16

The number of Americans without health insurance (as of 2017)is approximately

Accepted Answer

A) 20 million, or about 6 percent of the population. 
B) 49 million, or about 15 percent of the population. 
C) 29 million, or about 9 percent of the population. 
D) 72 million, or about 22 percent of the population. 
A) 20 million, or about 6 percent of the population. 
B) 49 million, or about 15 percent of the population. 
C) 29 million, or about 9 percent of the population. 
D) 72 million, or about 22 percent of the population.

Question 17

Which of the following is not one of the new taxes imposed under the PPACA?

Accepted Answer

A) 2.9 percent excise tax on medical devices 
B) 10 percent tax on indoor tanning 
C) 3.8 percent tax on "junk food" 
D) 40 percent tax on employers providing insurance to employees in excess of $10,200 per year for individuals or $27,500 per year for families. 
A) 2.9 percent excise tax on medical devices 
B) 10 percent tax on indoor tanning 
C) 3.8 percent tax on "junk food" 
D) 40 percent tax on employers providing insurance to employees in excess of $10,200 per year for individuals or $27,500 per year for families.

Question 18

The twin problems of health care in the U.S. are the rapidly rising cost of health care and limited access to health insurance coverage.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) the number of nurses graduating from universities 
B) productivity in the health care industry 
C) changes in medical technology 
D) physicians' treatment decisions 
A) the number of nurses graduating from universities 
B) productivity in the health care industry 
C) changes in medical technology 
D) physicians' treatment decisions

Question 20

One of the economic effects of rising health care costs in the labor market is that

Accepted Answer

A) productivity in medical care decreases. 
B) the demand for medical workers is decreasing. 
C) government is cutting health care coverage for workers. 
D) employers are using more temporary and part-time workers. 
A) productivity in medical care decreases. 
B) the demand for medical workers is decreasing. 
C) government is cutting health care coverage for workers. 
D) employers are using more temporary and part-time workers.

Exam 24: Health Care

Factors that have hampered the increase in the supply of physicians in the U.S. include the following, except

About what percentage of health care spending in the U.S. in 2017 was financed by private health insurance?

How are the budgets for the federal, state, and local governments affected by rising health care costs?

Because of health insurance, resources are underallocated to the health care industry.

The perceived central economic problem associated with the U.S. health care system is

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. One major consequence of doing this is that hospitals and other providers are then

What was the primary goal of the proponents of the Patient Protection and Affordable Care Act?

Which of the following is not an element of the Patient Protection and Affordable Care Act (PPACA)?

Given the availability of the Medicaid program, why are so many poor people uninsured?

Because employer payments for health insurance are not subject to income or payroll taxes, government in effect provides a subsidy to health care.

The health care industry currently absorbs about 17.9 percent of U.S. gross domestic product.

Which of the following statements is true about health care costs in the United States?

The reasons why health care costs in countries with public health insurance, like the United Kingdom and Canada, have not risen as much as the costs in the U.S. include the following, except

Which of the following is a nationwide Federal health care program available to Social Security beneficiaries and persons with disabilities?

Which of the following is not a reason why the demand for health care in the U.S. is quite price-inelastic?

The number of Americans without health insurance (as of 2017)is approximately

Which of the following is not one of the new taxes imposed under the PPACA?

The twin problems of health care in the U.S. are the rapidly rising cost of health care and limited access to health insurance coverage.

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

One of the economic effects of rising health care costs in the labor market is that

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Pure Monopoly

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Technology, RD, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

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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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