Question 1

Of the following high-income countries,which has the highest number of CT scanners per 1 million population?

Accepted Answer

A) Canada 
B) Japan 
C) the United Kingdom 
D) the United States 
A) Canada 
B) Japan 
C) the United Kingdom 
D) the United States

Question 2

What is moral hazard?

Accepted Answer

Moral hazard is a tendency for

Question 3

In 2011,________ of the uninsured were younger than age 34.

Accepted Answer

A) 10% 
B) 27% 
C) 54% 
D) 83% 
A) 10% 
B) 27% 
C) 54% 
D) 83%

Question 4

Which of the following is not part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (ACA)?

Accepted Answer

A) Individuals are allowed to opt out of the insurance program if they can prove they have no serious health issues and do so before the act fully takes effect in the year 2014. 
B) By 2016, fines for not having health insurance will be the greater of $695 per person or 2.5 percent of income. 
C) Beginning in 2014, individuals who do not acquire health insurance will be subject to a fine. 
D) With limited exceptions, every resident of the United States will be required to have health insurance that meets certain basic requirements. 
A) Individuals are allowed to opt out of the insurance program if they can prove they have no serious health issues and do so before the act fully takes effect in the year 2014. 
B) By 2016, fines for not having health insurance will be the greater of $695 per person or 2.5 percent of income. 
C) Beginning in 2014, individuals who do not acquire health insurance will be subject to a fine. 
D) With limited exceptions, every resident of the United States will be required to have health insurance that meets certain basic requirements.

Question 5

When consumers pay only a fraction of the true cost of medical services,their demand increases.The marginal cost of producing these extra services

Accepted Answer

A) is greater than the marginal benefit consumers receive from them. 
B) is less than the marginal benefit consumers receive from them. 
C) is equal to the marginal benefit consumers receive from them. 
D) is zero due to the insurance payments. 
A) is greater than the marginal benefit consumers receive from them. 
B) is less than the marginal benefit consumers receive from them. 
C) is equal to the marginal benefit consumers receive from them. 
D) is zero due to the insurance payments.

Question 6

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

Accepted Answer

An externality is a benefit or cost that

Question 7

Adverse selection will occur in a market as a result of

Accepted Answer

A) asymmetric information. 
B) moral hazard. 
C) the sale of "lemons." 
D) rational ignorance. 
A) asymmetric information. 
B) moral hazard. 
C) the sale of "lemons." 
D) rational ignorance.

Question 8

Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not an advantage of risk pooling?

Accepted Answer

A) By insuring large groups as opposed to individuals, health insurance providers reduce adverse selection. 
B) It gives very sick people in the group the same access to health care and to pay the same premiums as healthy individuals. 
C) It is easier for an insurance company to estimate the average number of claims likely to be filed under a group policy than it is to predict the number of claims likely to be filed under an individual policy. 
D) Individuals who are insured and therefore do not have to pay the full cost of health care services may be inclined to over-use those services. 
A) By insuring large groups as opposed to individuals, health insurance providers reduce adverse selection. 
B) It gives very sick people in the group the same access to health care and to pay the same premiums as healthy individuals. 
C) It is easier for an insurance company to estimate the average number of claims likely to be filed under a group policy than it is to predict the number of claims likely to be filed under an individual policy. 
D) Individuals who are insured and therefore do not have to pay the full cost of health care services may be inclined to over-use those services.

Question 10

If an employee receives health insurance through his or her employer,the employer

Accepted Answer

A) still withholds contributions for Medicare and Medicaid from the employee's paycheck. 
B) still withholds contributions for Medicare, but not Medicaid, from the employee's paycheck. 
C) still withholds contributions for Medicaid, but not Medicare, from the employee's paycheck. 
D) is no longer required to withhold contributions for Medicare or Medicaid from the employee's paycheck. 
A) still withholds contributions for Medicare and Medicaid from the employee's paycheck. 
B) still withholds contributions for Medicare, but not Medicaid, from the employee's paycheck. 
C) still withholds contributions for Medicaid, but not Medicare, from the employee's paycheck. 
D) is no longer required to withhold contributions for Medicare or Medicaid from the employee's paycheck.

Question 11

Adverse selection is a situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction.

Accepted Answer

A) True 
 B)False

Question 12

Briefly describe the most important differences between the market for health care and the market for other goods and services.

Accepted Answer

Doctors and hospitals that supply most h

Question 13

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is

Accepted Answer

A) inefficient market hypothesis. 
B) moral hazard. 
C) information disparity. 
D) asymmetric information. 
A) inefficient market hypothesis. 
B) moral hazard. 
C) information disparity. 
D) asymmetric information.

Question 14

The aging of the U.S.population has tended to ________ spending on health care,and the development of new drugs and medical equipment has tended to ________ spending on health care.

Accepted Answer

A) increase; increase 
B) increase; decrease 
C) decrease; increase 
D) decrease; decrease 
A) increase; increase 
B) increase; decrease 
C) decrease; increase 
D) decrease; decrease

Question 15

Economists who support market-based reforms for health care believe that increased competition among providers of health care would

Accepted Answer

A) decrease costs but decrease economic efficiency. 
B) decrease costs and increase economic efficiency. 
C) increase costs but increase economic efficiency. 
D) increase costs and decrease economic efficiency. 
A) decrease costs but decrease economic efficiency. 
B) decrease costs and increase economic efficiency. 
C) increase costs but increase economic efficiency. 
D) increase costs and decrease economic efficiency.

Question 16

Of the following high-income countries,which has the highest female life expectancy at age 65?

Accepted Answer

A) Canada 
B) Japan 
C) the United Kingdom 
D) the United States 
A) Canada 
B) Japan 
C) the United Kingdom 
D) the United States

Question 17

Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole.

Accepted Answer

A) approximately equal to 
B) slightly faster than 
C) almost twice as fast as 
D) less than half as fast as 
A) approximately equal to 
B) slightly faster than 
C) almost twice as fast as 
D) less than half as fast as

Question 18

Based on the current rate of growth,health care spending as a percentage of GDP through Medicare,Medicaid,and other U.S.government programs is expected to

Accepted Answer

A) stabilize within the next 20 years. 
B) account for a majority of spending as a percentage of GDP within 5 years. 
C) slow down during this decade. 
D) more than double over the next 40 years. 
A) stabilize within the next 20 years. 
B) account for a majority of spending as a percentage of GDP within 5 years. 
C) slow down during this decade. 
D) more than double over the next 40 years.

Question 19

In most circumstances,employees pay taxes on the value of health insurance their employers provide them.

Accepted Answer

A) True 
 B)False

Question 20

In the United States,total health care spending per person has been ________,and out-of-pocket spending on health care per person has been ________.

Accepted Answer

A) rising; rising 
B) rising; falling 
C) falling; rising 
D) falling; falling 
A) rising; rising 
B) rising; falling 
C) falling; rising 
D) falling; falling

Of the following high-income countries,which has the highest number of CT scanners per 1 million population?

What is moral hazard?

In 2011,________ of the uninsured were younger than age 34.

Which of the following is not part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (ACA)?

When consumers pay only a fraction of the true cost of medical services,their demand increases.The marginal cost of producing these extra services

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

Adverse selection will occur in a market as a result of

Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents.

Which of the following is not an advantage of risk pooling?

If an employee receives health insurance through his or her employer,the employer

Adverse selection is a situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction.

Briefly describe the most important differences between the market for health care and the market for other goods and services.

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is

The aging of the U.S.population has tended to spending on health care,and the development of new drugs and medical equipment has tended to spending on health care.

Economists who support market-based reforms for health care believe that increased competition among providers of health care would

Of the following high-income countries,which has the highest female life expectancy at age 65?

Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole.

Based on the current rate of growth,health care spending as a percentage of GDP through Medicare,Medicaid,and other U.S.government programs is expected to

In most circumstances,employees pay taxes on the value of health insurance their employers provide them.

In the United States,total health care spending per person has been ,and out-of-pocket spending on health care per person has been .

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 5: The Economics of Health Care

Of the following high-income countries,which has the highest number of CT scanners per 1 million population?

What is moral hazard?

In 2011,________ of the uninsured were younger than age 34.

Which of the following is not part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (ACA)?

When consumers pay only a fraction of the true cost of medical services,their demand increases.The marginal cost of producing these extra services

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

Adverse selection will occur in a market as a result of

Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents.

Which of the following is not an advantage of risk pooling?

If an employee receives health insurance through his or her employer,the employer

Adverse selection is a situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction.

Briefly describe the most important differences between the market for health care and the market for other goods and services.

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is

The aging of the U.S.population has tended to ________ spending on health care,and the development of new drugs and medical equipment has tended to ________ spending on health care.

Economists who support market-based reforms for health care believe that increased competition among providers of health care would

Of the following high-income countries,which has the highest female life expectancy at age 65?

Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole.

Based on the current rate of growth,health care spending as a percentage of GDP through Medicare,Medicaid,and other U.S.government programs is expected to

In most circumstances,employees pay taxes on the value of health insurance their employers provide them.

In the United States,total health care spending per person has been ________,and out-of-pocket spending on health care per person has been ________.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

The aging of the U.S.population has tended to spending on health care,and the development of new drugs and medical equipment has tended to spending on health care.

In the United States,total health care spending per person has been ,and out-of-pocket spending on health care per person has been .