Question 1

From the standpoint of economic efficiency,which of the following is a major advantage of medical savings accounts?

Accepted Answer

A) They encourage healthcare consumers to purchase low-deductible,low co-payment medical insurance plans. 
B) They guarantee that no American will ever have to pay another medical bill. 
C) They encourage healthcare consumers to economize. 
D) They will force employers to pay a larger share of the medical expenses of their employees. 
A) They encourage healthcare consumers to purchase low-deductible,low co-payment medical insurance plans. 
B) They guarantee that no American will ever have to pay another medical bill. 
C) They encourage healthcare consumers to economize. 
D) They will force employers to pay a larger share of the medical expenses of their employees.

Question 2

Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will

Accepted Answer

A) place downward pressure on the prices of healthcare services. 
B) lead to higher healthcare prices. 
C) increase the incentive of consumers to economize on their purchases of healthcare services. 
D) increase the incentive of healthcare providers to provide their services at economical prices. 
A) place downward pressure on the prices of healthcare services. 
B) lead to higher healthcare prices. 
C) increase the incentive of consumers to economize on their purchases of healthcare services. 
D) increase the incentive of healthcare providers to provide their services at economical prices.

Question 3

Which of the following would help control the future growth of healthcare prices and expenditures?

Accepted Answer

A) an increase in the share of healthcare costs paid for either directly or from personal medical savings accounts 
B) the substitution of catastrophic (high deductibility)health insurance for low co-payment plans 
C) more reliance on expansion in the supply of medical services rather than stimulation of demand 
D) all of the above 
A) an increase in the share of healthcare costs paid for either directly or from personal medical savings accounts 
B) the substitution of catastrophic (high deductibility)health insurance for low co-payment plans 
C) more reliance on expansion in the supply of medical services rather than stimulation of demand 
D) all of the above

Question 4

Healthcare price controls will lead to

Accepted Answer

A) more innovative healthcare treatments. 
B) waiting lines and lengthy delays for treatment. 
C) higher quality healthcare services. 
D) an increase in the supply of healthcare services. 
A) more innovative healthcare treatments. 
B) waiting lines and lengthy delays for treatment. 
C) higher quality healthcare services. 
D) an increase in the supply of healthcare services.

Question 5

If the supply of health-care services is highly inelastic and larger government subsidies lead to an increase in the demand for the services,

Accepted Answer

A) the prices of health-care services will rise by only a small amount,but the quantity supplied will increase substantially. 
B) the prices of health-care services will rise substantially,but the quantity supplied will increase by only a small amount. 
C) both health-care prices and the quantity of the services supplied will increase substantially. 
D) the prices of health-care services will decline,but there will be only a small change in the quantity supplied. 
A) the prices of health-care services will rise by only a small amount,but the quantity supplied will increase substantially. 
B) the prices of health-care services will rise substantially,but the quantity supplied will increase by only a small amount. 
C) both health-care prices and the quantity of the services supplied will increase substantially. 
D) the prices of health-care services will decline,but there will be only a small change in the quantity supplied.

Question 6

Third-party payments by either the government or an insurance company accounted for ____ of the 2009 healthcare expenditures,compared to ____ paid by third parties in 1960.

Accepted Answer

A) 40 percent;20 percent 
B) 20 percent;40 percent 
C) 86 percent;45 percent 
D) 96 percent;73 percent 
A) 40 percent;20 percent 
B) 20 percent;40 percent 
C) 86 percent;45 percent 
D) 96 percent;73 percent

Question 7

Relative to the general index of consumer prices,medical-care prices have

Accepted Answer

A) fallen quite substantially since the beginning of the Medicare and Medicaid programs in 1965. 
B) risen quite substantially since the beginning of the Medicare and Medicaid programs in 1965. 
C) remained roughly constant since the beginning of the Medicare and Medicaid programs in 1965. 
D) fallen,but only slightly,since the beginning of the Medicare and Medicaid programs in 1965. 
A) fallen quite substantially since the beginning of the Medicare and Medicaid programs in 1965. 
B) risen quite substantially since the beginning of the Medicare and Medicaid programs in 1965. 
C) remained roughly constant since the beginning of the Medicare and Medicaid programs in 1965. 
D) fallen,but only slightly,since the beginning of the Medicare and Medicaid programs in 1965.

Question 8

Which of the following would encourage consumers to economize on their use of healthcare and producers to provide it more efficiently?

Accepted Answer

A) a reduction in out-of-pocket healthcare expenditures 
B) government subsidies that encourage people to purchase health insurance policies with first-dollar coverage and small co-payments 
C) Medicare reform that at least partially substituted defined benefits (funds that could be used to pay for healthcare or the purchase of insurance)for the present cost reimbursement system 
D) all of the above 
A) a reduction in out-of-pocket healthcare expenditures 
B) government subsidies that encourage people to purchase health insurance policies with first-dollar coverage and small co-payments 
C) Medicare reform that at least partially substituted defined benefits (funds that could be used to pay for healthcare or the purchase of insurance)for the present cost reimbursement system 
D) all of the above

Exam 37: The Economics of Healthcare

From the standpoint of economic efficiency,which of the following is a major advantage of medical savings accounts?

Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will

Which of the following would help control the future growth of healthcare prices and expenditures?

Healthcare price controls will lead to

If the supply of health-care services is highly inelastic and larger government subsidies lead to an increase in the demand for the services,

Third-party payments by either the government or an insurance company accounted for ____ of the 2009 healthcare expenditures,compared to ____ paid by third parties in 1960.

Relative to the general index of consumer prices,medical-care prices have

Which of the following would encourage consumers to economize on their use of healthcare and producers to provide it more efficiently?

The Economic Approach

Asome Tools of the Economist

Asupply,demand,and the Market Process

Asupply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Ataking the Nations Economic Pulse

Economic Fluctuations, unemployment, and Inflation

Aan Introduction to Basic Macroeconomic Markets

Dynamic Change, economic Fluctuations, and the Ad-As Model

Fiscal Policy: the Keynesian View and Historical Perspective

Fiscal Policy, incentives, and Secondary Effects

Amoney and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, output, and Employment

Creating an Environment for Growth and Prosperity

Institutions,policies,and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Consumer Choice and Elasticity

Acosts and the Supply of Goods

Aprice Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Aprice-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Government Spending and Taxation

The Economics of Social Security

The Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Great Debates in Economics: Keynes Versus Hayek

The Crisis of 2008: Causes and Lessons for the Future

Lessons From the Great Depression

Lessons From Japan and Canada

The Federal Budget and the National Debt

Education: Problems and Performance

Earnings Differences Between Men and Women

Do Labor Unions Increase the Wages of Workers

The Question of Resource Exhaustion

Difficult Environmental Cases and the Role of Government

Filters

Third-party payments by either the government or an insurance company accounted for of the 2009 healthcare expenditures,compared to paid by third parties in 1960.