Question 1

Indiana's health care plan for state employees

Accepted Answer

A) has reduced total spending on health care, but at the cost of employees forgoing important preventative care procedures. 
B) has reduced total spending on health care without people forgoing important preventative care procedures. 
C) has increased total spending on health care, but with the benefit of increasing the overall health of state workers, who now take greater advantage of preventative care procedures. 
D) has reduced health care spending for those who participate in the plan, but only a small (less than 10 percent)percentage of state employees actually use the system. 
A) has reduced total spending on health care, but at the cost of employees forgoing important preventative care procedures. 
B) has reduced total spending on health care without people forgoing important preventative care procedures. 
C) has increased total spending on health care, but with the benefit of increasing the overall health of state workers, who now take greater advantage of preventative care procedures. 
D) has reduced health care spending for those who participate in the plan, but only a small (less than 10 percent)percentage of state employees actually use the system.

Question 2

Preferred provider organizations (PPOs)are a type of managed-care organization.

Accepted Answer

A) True 
 B)False

Question 3

Other things equal, and given that the elasticity of demand for health care is 0.2, a 10 percent increase in the price of health care in the United States will reduce the quantity of health care demanded by about

Accepted Answer

A) 1 percent. 
B) 2 percent. 
C) 5 percent. 
D) 20 percent. 
A) 1 percent. 
B) 2 percent. 
C) 5 percent. 
D) 20 percent.

Question 4

For many years, the price of medical care in the United States has

Accepted Answer

A) risen at the same rate as the overall price level. 
B) risen at a faster rate than the overall price level. 
C) risen, but at a slower rate than the overall price level. 
D) fallen. 
A) risen at the same rate as the overall price level. 
B) risen at a faster rate than the overall price level. 
C) risen, but at a slower rate than the overall price level. 
D) fallen.

Question 5

In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about

Accepted Answer

A) +3. 
B) +6. 
C) −2. 
D) +1. 
A) +3. 
B) +6. 
C) −2. 
D) +1.

Question 6

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 two-thirds of the equilibrium price, the immediate price to the consumer and quantity of health care demanded would be

Accepted Answer

A) $3,000 and 7,000. 
B) $4,000 and 10,000. 
C) $1,000 and 16,000. 
D) $2,000 and 11,000. 
A) $3,000 and 7,000. 
B) $4,000 and 10,000. 
C) $1,000 and 16,000. 
D) $2,000 and 11,000.

Question 7

Health care spending accounted for what percentage of U.S. GDP in 1960 and in 2017?

Accepted Answer

A) 5.0 percent and 5.45 percent, respectively 
B) 10.0 percent and 12.2 percent, respectively 
C) 5.0 percent and 17.9 percent, respectively 
D) 20.0 percent and 33.5 percent, respectively 
A) 5.0 percent and 5.45 percent, respectively 
B) 10.0 percent and 12.2 percent, respectively 
C) 5.0 percent and 17.9 percent, respectively 
D) 20.0 percent and 33.5 percent, respectively

Question 8

Theoretically, the effect of private health insurance on the price and quantity of health care consumed

Accepted Answer

A) is the same as that of public health insurance. 
B) is a lower price and a higher quantity compared to public health insurance. 
C) is a higher price and a lower quantity compared to public health insurance. 
D) is a lower price and a lower quantity compared to public health insurance. 
A) is the same as that of public health insurance. 
B) is a lower price and a higher quantity compared to public health insurance. 
C) is a higher price and a lower quantity compared to public health insurance. 
D) is a lower price and a lower quantity compared to public health insurance.

Question 9

Identify the four peculiarities of the health care market.

Accepted Answer

Ethical and equity considerations: Ethic

Question 10

Access to health care is a highly publicized problem in the U.S. The number of Americans in 2017 who did not have health insurance coverage was approximately

Accepted Answer

A) 12 million. 
B) 29 million. 
C) 85 million. 
D) 121 million. 
A) 12 million. 
B) 29 million. 
C) 85 million. 
D) 121 million.

Question 11

In the health care market,

Accepted Answer

A) demand has increased relative to supply. 
B) supply has increased relative to demand. 
C) neither demand nor supply has changed significantly in the past two decades. 
D) the concepts of demand and supply are irrelevant. 
A) demand has increased relative to supply. 
B) supply has increased relative to demand. 
C) neither demand nor supply has changed significantly in the past two decades. 
D) the concepts of demand and supply are irrelevant.

Question 12

A unit set up by insurance companies that requires hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan is a

Accepted Answer

A) preferred provider organization. 
B) health maintenance organization. 
C) diagnosis-related group system. 
D) regional health alliance. 
A) preferred provider organization. 
B) health maintenance organization. 
C) diagnosis-related group system. 
D) regional health alliance.

Question 13

If labor productivity in the health care industry rises very slowly relative to wages and salaries in the industry, this would tend to

Accepted Answer

A) increase the demand for health care. 
B) decrease the demand for health care. 
C) increase the supply of health care. 
D) increase the cost of health care. 
A) increase the demand for health care. 
B) decrease the demand for health care. 
C) increase the supply of health care. 
D) increase the cost of health care.

Question 14

Employer-provided private health insurance began in the United States because

Accepted Answer

A) the rising threat of socialism prompted U.S. companies to provide insurance to dampen enthusiasm for socialist reform. 
B) during World War II, wage and price controls forced employers to use nonwage forms of compensation to attract workers. 
C) poor health conditions at the beginning of the 20th century prompted the U.S. government to require new companies to offer health insurance to employees. 
D) the American Medical Association successfully lobbied the U.S. government to provide subsidies to companies offering private health insurance to employees. 
A) the rising threat of socialism prompted U.S. companies to provide insurance to dampen enthusiasm for socialist reform. 
B) during World War II, wage and price controls forced employers to use nonwage forms of compensation to attract workers. 
C) poor health conditions at the beginning of the 20th century prompted the U.S. government to require new companies to offer health insurance to employees. 
D) the American Medical Association successfully lobbied the U.S. government to provide subsidies to companies offering private health insurance to employees.

Question 15

In the United States, approximately how many doctors are there per 100,000 population?

Accepted Answer

A) 162 
B) 224 
C) 580 
D) 6,200 
A) 162 
B) 224 
C) 580 
D) 6,200

Question 16

One of the main differences between PPOs and HMOs is that

Accepted Answer

A) HMO physicians charge on a traditional fee-for-service basis, while PPO physicians do not. 
B) HMOs are usually for-profit organizations, whereas PPOs are not. 
C) PPOs employ their own doctors, whereas HMOs do not. 
D) PPO physicians charge on a traditional fee-for-service basis, while HMOs do not. 
A) HMO physicians charge on a traditional fee-for-service basis, while PPO physicians do not. 
B) HMOs are usually for-profit organizations, whereas PPOs are not. 
C) PPOs employ their own doctors, whereas HMOs do not. 
D) PPO physicians charge on a traditional fee-for-service basis, while HMOs do not.

Question 17

What is the primary purpose of the insurance exchanges set up by the PPACA?

Accepted Answer

A) provide direct care to those without employer-provided health insurance 
B) allow those with employer-provided health insurance to trade for policies that are more cost effective 
C) sell government-provided health insurance to those lacking employer coverage 
D) promote competition among insurance companies to help reduce the growth in health care spending 
A) provide direct care to those without employer-provided health insurance 
B) allow those with employer-provided health insurance to trade for policies that are more cost effective 
C) sell government-provided health insurance to those lacking employer coverage 
D) promote competition among insurance companies to help reduce the growth in health care spending

Question 18

Subsidies for those required to purchase health insurance under the personal mandate provision of the PPACA are

Accepted Answer

A) limited to those whose income is less than 133 percent of the federal poverty line. 
B) limited to those whose income is at or below the federal poverty line. 
C) provided to some individuals in the upper half of the income distribution. 
D) a fixed amount per person for those eligible to receive the subsidies. 
A) limited to those whose income is less than 133 percent of the federal poverty line. 
B) limited to those whose income is at or below the federal poverty line. 
C) provided to some individuals in the upper half of the income distribution. 
D) a fixed amount per person for those eligible to receive the subsidies.

Question 19

Which of the following nations has the highest percentage of its GDP spent on health care?

Accepted Answer

A) Singapore 
B) Canada 
C) France 
D) United States 
A) Singapore 
B) Canada 
C) France 
D) United States

Question 20

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. The rationale for doing this includes the following, except

Accepted Answer

A) saving taxpayers money. 
B) inducing health care providers to serve Medicare and Medicaid patients. 
C) making hospitals and other providers become more profitable. 
D) putting downward pressure on health care costs. 
A) saving taxpayers money. 
B) inducing health care providers to serve Medicare and Medicaid patients. 
C) making hospitals and other providers become more profitable. 
D) putting downward pressure on health care costs.

Exam 24: Health Care

Indiana's health care plan for state employees

Preferred provider organizations (PPOs)are a type of managed-care organization.

Other things equal, and given that the elasticity of demand for health care is 0.2, a 10 percent increase in the price of health care in the United States will reduce the quantity of health care demanded by about

For many years, the price of medical care in the United States has

In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about

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 two-thirds of the equilibrium price, the immediate price to the consumer and quantity of health care demanded would be

Health care spending accounted for what percentage of U.S. GDP in 1960 and in 2017?

Theoretically, the effect of private health insurance on the price and quantity of health care consumed

Identify the four peculiarities of the health care market.

Access to health care is a highly publicized problem in the U.S. The number of Americans in 2017 who did not have health insurance coverage was approximately

In the health care market,

A unit set up by insurance companies that requires hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan is a

If labor productivity in the health care industry rises very slowly relative to wages and salaries in the industry, this would tend to

Employer-provided private health insurance began in the United States because

In the United States, approximately how many doctors are there per 100,000 population?

One of the main differences between PPOs and HMOs is that

What is the primary purpose of the insurance exchanges set up by the PPACA?

Subsidies for those required to purchase health insurance under the personal mandate provision of the PPACA are

Which of the following nations has the highest percentage of its GDP spent on health care?

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. The rationale for doing this includes the following, except

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

Filters