Question 1

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will generate

Accepted Answer

A) additional moral hazard. 
B) positive externalities. 
C) greater asymmetric information. 
D) more adverse selection. 
A) additional moral hazard. 
B) positive externalities. 
C) greater asymmetric information. 
D) more adverse selection.

Question 2

Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance.This problem is an example of

Accepted Answer

A) moral hazard. 
B) adverse selection. 
C) market signaling. 
D) asymmetric information. 
A) moral hazard. 
B) adverse selection. 
C) market signaling. 
D) asymmetric information.

Question 3

In the United States in 2011,over 90 percent of people without health insurance were below the age of 34.

Accepted Answer

A) True 
 B)False

Question 4

Figure 5-2
   
Figure 5-2 represents the market for vaccinations.Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-2.Marginal private benefit is represented by which curve?

Accepted Answer

A) D₁ 
B) D₂ 
C) Supply 
D) All of the above represent marginal private benefit. 
A) D₁ 
B) D₂ 
C) Supply 
D) All of the above represent marginal private benefit.

Question 5

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

Accepted Answer

A person's height partly relies on nutri

Question 6

Figure 5-1
   
Figure 5-1 represents the market for vaccinations.Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-1.At the market equilibrium,the deadweight loss is equal to

Accepted Answer

A) $0. 
B) $250,000. 
C) $500,000. 
D) $1,000,000. 
A) $0. 
B) $250,000. 
C) $500,000. 
D) $1,000,000.

Question 7

A doctor pursuing the interests of his patients rather than his own interests is an example of the principal-agent problem.

Accepted Answer

A) True 
 B)False

Question 8

If a doctor knows that an insurance company will pay for most of a patient's bill,the doctor has more of an incentive to require additional medical procedures and tests,even if the patient may not require them.This is an example of

Accepted Answer

A) moral hazard. 
B) the principle-agent problem. 
C) asymmetric information. 
D) adverse selection. 
A) moral hazard. 
B) the principle-agent problem. 
C) asymmetric information. 
D) adverse selection.

Question 9

Figure 5-5
   
Figure 5-5 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 5-5.With insurance and a third-party payer system,what is the amount of the deadweight loss?

Accepted Answer

A) $0 
B) $2,500 
C) $5,000 
D) $24,000 
A) $0 
B) $2,500 
C) $5,000 
D) $24,000

Question 10

Figure 5-3
   
Figure 5-3 shows the effect of a positive externality on the market for vaccinations.
-Refer to Figure 5-3.On the above graph,identify the market equilibrium price and quantity,the efficient equilibrium price and quantity,and the value of the deadweight loss resulting from too few people receiving vaccinations.

Accepted Answer

The market equilibrium price a

Question 11

The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to

Accepted Answer

A) the aging population. 
B) increases in the cost of providing health care. 
C) increases in immigration. 
D) declining income levels. 
A) the aging population. 
B) increases in the cost of providing health care. 
C) increases in immigration. 
D) declining income levels.

Question 12

Adverse selection in the market for health insurance arises because

Accepted Answer

A) many insurance companies care more about profits than they do about providing services for their customers in the event of illness. 
B) the federal government intervenes in insurance markets by controlling prices and reimbursement policies. 
C) insurance companies are not allowed to charge premiums that are high enough to insure against "worst-case" illness. 
D) buyers of insurance know more than insurance companies about the likelihood of an illness for which buyers want insurance. 
A) many insurance companies care more about profits than they do about providing services for their customers in the event of illness. 
B) the federal government intervenes in insurance markets by controlling prices and reimbursement policies. 
C) insurance companies are not allowed to charge premiums that are high enough to insure against "worst-case" illness. 
D) buyers of insurance know more than insurance companies about the likelihood of an illness for which buyers want insurance.

Question 13

What has happened to health care's share of gross domestic product in the United States since 1965? How does this compare to what has happened to out-of-pocket spending on health care as a percentage of all spending on health care?

Accepted Answer

Health care's share of gross domestic pr

Question 14

Under the Patient Protection and Affordable Care Act (ACA),residents who do not have health insurance will not be allowed to seek employment.

Accepted Answer

A) True 
 B)False

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will generate

Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance.This problem is an example of

In the United States in 2011,over 90 percent of people without health insurance were below the age of 34.

Figure 5-2 Figure 5-2 represents the market for vaccinations.Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 5-2.Marginal private benefit is represented by which curve?

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

Figure 5-1 Figure 5-1 represents the market for vaccinations.Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 5-1.At the market equilibrium,the deadweight loss is equal to

A doctor pursuing the interests of his patients rather than his own interests is an example of the principal-agent problem.

If a doctor knows that an insurance company will pay for most of a patient's bill,the doctor has more of an incentive to require additional medical procedures and tests,even if the patient may not require them.This is an example of

Figure 5-5 Figure 5-5 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 5-5.With insurance and a third-party payer system,what is the amount of the deadweight loss?

The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to

Adverse selection in the market for health insurance arises because

What has happened to health care's share of gross domestic product in the United States since 1965? How does this compare to what has happened to out-of-pocket spending on health care as a percentage of all spending on health care?

Under the Patient Protection and Affordable Care Act (ACA),residents who do not have health insurance will not be allowed to seek employment.

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

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will generate

Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance.This problem is an example of

In the United States in 2011,over 90 percent of people without health insurance were below the age of 34.

Figure 5-2 Figure 5-2 represents the market for vaccinations.Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 5-2.Marginal private benefit is represented by which curve?

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

Figure 5-1 Figure 5-1 represents the market for vaccinations.Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 5-1.At the market equilibrium,the deadweight loss is equal to

A doctor pursuing the interests of his patients rather than his own interests is an example of the principal-agent problem.

If a doctor knows that an insurance company will pay for most of a patient's bill,the doctor has more of an incentive to require additional medical procedures and tests,even if the patient may not require them.This is an example of

Figure 5-5 Figure 5-5 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 5-5.With insurance and a third-party payer system,what is the amount of the deadweight loss?

The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to

Adverse selection in the market for health insurance arises because

What has happened to health care's share of gross domestic product in the United States since 1965? How does this compare to what has happened to out-of-pocket spending on health care as a percentage of all spending on health care?

Under the Patient Protection and Affordable Care Act (ACA),residents who do not have health insurance will not be allowed to seek employment.

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