Question 1

Changes in the health of the average person are an important indicator of changes in the standard of living.

Accepted Answer

A) True 
 B)False

Question 2

If a state requires all drivers to buy health insurance,the problem of adverse selection is eliminated.

Accepted Answer

A) True 
 B)False

Question 3

One reason why adverse selection problems arise in health insurance markets is that

Accepted Answer

A) sick people are more likely to want health insurance than healthy people. 
B) because of advances in medical technology, people are living longer.These medical advances are costly and drive up the price of insurance for everyone. 
C) the average age of citizens of the United States has increased in recent years, and will continue to increase over the next 20 to 30 years.As older citizens retire, more and more of their medical bills will have to be paid by younger workers. 
D) fewer men and women are choosing medical careers because of the increase in the cost of malpractice insurance. 
A) sick people are more likely to want health insurance than healthy people. 
B) because of advances in medical technology, people are living longer.These medical advances are costly and drive up the price of insurance for everyone. 
C) the average age of citizens of the United States has increased in recent years, and will continue to increase over the next 20 to 30 years.As older citizens retire, more and more of their medical bills will have to be paid by younger workers. 
D) fewer men and women are choosing medical careers because of the increase in the cost of malpractice insurance.

Question 4

Figure 5-4
   
Figure 5-4 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 5-4.The efficient quantity of medical services is

Accepted Answer

A) 200. 
B) 500. 
C) 700. 
D) >700. 
A) 200. 
B) 500. 
C) 700. 
D) >700.

Question 5

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

Accepted Answer

A) is a primary cause of price increases. 
B) reduces the incentive to work. 
C) shifts out a country's production possibilities frontier. 
D) increases consumer surplus. 
A) is a primary cause of price increases. 
B) reduces the incentive to work. 
C) shifts out a country's production possibilities frontier. 
D) increases consumer surplus.

Question 6

In the United States in 2012,the percentage of firms that employed between 3 and 199 workers and did not offer health insurance as a fringe benefit to the workers was about

Accepted Answer

A) 2%. 
B) 39%. 
C) 61%. 
D) 98%. 
A) 2%. 
B) 39%. 
C) 61%. 
D) 98%.

Question 7

What are two reasons why employees would prefer for their employer pay for their health insurance rather than receiving increased wages and paying for their own health insurance?

Accepted Answer

1.The wage an employer pays employees is

Question 8

Figure 5-6
   
Figure 5-6 represents the supply and demand for medical services with and without a third-party payer.
-Refer to Figure 5-6.Answer the following questions:
1.What would be the equilibrium price and quantity if consumers had to pay the full price of medical services?
2.With insurance acting as a third-party payer,what price will consumers pay for medical service?
3.With insurance acting as a third-party payer,what price will doctors receive for medical service?
4.With insurance acting as a third-party payer,what will be the equilibrium quantity of medical services?
5.With insurance acting as a third-party payer,what will be the value of the deadweight loss?

Accepted Answer

1.$50; 400

Question 9

What is adverse selection?

Accepted Answer

Adverse selection refers to a

Question 10

What is the principle-agent problem?

Accepted Answer

The principle-agent problem is

Question 11

In the United States in 2012,the percentage of people without some form of private health insurance was about

Accepted Answer

A) 17%. 
B) 29%. 
C) 36%. 
D) 83%. 
A) 17%. 
B) 29%. 
C) 36%. 
D) 83%.

Question 12

Vaccinations tend to result in a positive externality.Draw a graph showing the market for vaccinations,including both the marginal private benefit curve and the marginal social benefit curve.Identify the market equilibrium price and quantity,the efficient equilibrium price and quantity,and the deadweight loss.

Accepted Answer

The answer of Vaccinations tend to result in a positive...

Question 13

In 2013,the average height of adult males in the United States was

Accepted Answer

A) 5' 7." 
B) 5' 9." 
C) 6' 0." 
D) 6' 4." 
A) 5' 7." 
B) 5' 9." 
C) 6' 0." 
D) 6' 4."

Question 14

In the market for insurance,

Accepted Answer

A) buyers often have more information than sellers. 
B) sellers often have better information than buyers. 
C) sellers are protected from lawsuits brought by buyers. 
D) demand is perfectly inelastic because, by law, home owners and automobile drivers must have insurance. 
A) buyers often have more information than sellers. 
B) sellers often have better information than buyers. 
C) sellers are protected from lawsuits brought by buyers. 
D) demand is perfectly inelastic because, by law, home owners and automobile drivers must have insurance.

Question 15

Compared to other high-income countries,health care spending per person in the United States has been

Accepted Answer

A) growing at a faster rate. 
B) declining at a faster rate. 
C) growing at approximately the same rate. 
D) declining at approximately the same rate. 
A) growing at a faster rate. 
B) declining at a faster rate. 
C) growing at approximately the same rate. 
D) declining at approximately the same rate.

Question 16

Figure 5-4
   
Figure 5-4 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 5-4.If consumers paid the full price of medical services,the equilibrium quantity would be

Accepted Answer

A) 200. 
B) 500. 
C) 700. 
D) >700. 
A) 200. 
B) 500. 
C) 700. 
D) >700.

Question 17

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 efficient equilibrium

Accepted Answer

A) economic surplus is maximized. 
B) economic surplus is minimized. 
C) economic surplus is zero. 
D) economic surplus is negative. 
A) economic surplus is maximized. 
B) economic surplus is minimized. 
C) economic surplus is zero. 
D) economic surplus is negative.

Question 18

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.The market equilibrium quantity is ________ thousand vaccinations.

Accepted Answer

A) 100 
B) 200 
C) 300 
D) >300 
A) 100 
B) 200 
C) 300 
D) >300

Question 19

The health care system in ________ is referred to as socialized medicine,under which the government owns most of the hospitals and employs most of the doctors.

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 20

Of the following,the most to the rapid rise in health care costs in the United States can be attributed to

Accepted Answer

A) the cost of malpractice insurance. 
B) the cost to treat uninsured patients. 
C) slow growth in labor productivity in health care. 
D) the cost of malpractice lawsuit settlements. 
A) the cost of malpractice insurance. 
B) the cost to treat uninsured patients. 
C) slow growth in labor productivity in health care. 
D) the cost of malpractice lawsuit settlements.

Changes in the health of the average person are an important indicator of changes in the standard of living.

If a state requires all drivers to buy health insurance,the problem of adverse selection is eliminated.

One reason why adverse selection problems arise in health insurance markets is that

Figure 5-4 Figure 5-4 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 5-4.The efficient quantity of medical services is

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

In the United States in 2012,the percentage of firms that employed between 3 and 199 workers and did not offer health insurance as a fringe benefit to the workers was about

What are two reasons why employees would prefer for their employer pay for their health insurance rather than receiving increased wages and paying for their own health insurance?

What is adverse selection?

What is the principle-agent problem?

In the United States in 2012,the percentage of people without some form of private health insurance was about

In 2013,the average height of adult males in the United States was

In the market for insurance,

Compared to other high-income countries,health care spending per person in the United States has been

Figure 5-4 Figure 5-4 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 5-4.If consumers paid the full price of medical services,the equilibrium quantity would be

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 efficient equilibrium

The health care system in ________ is referred to as socialized medicine,under which the government owns most of the hospitals and employs most of the doctors.

Of the following,the most to the rapid rise in health care costs in the United States can be attributed to

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

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Exam 5: The Economics of Health Care

Changes in the health of the average person are an important indicator of changes in the standard of living.

If a state requires all drivers to buy health insurance,the problem of adverse selection is eliminated.

One reason why adverse selection problems arise in health insurance markets is that

Figure 5-4 Figure 5-4 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 5-4.The efficient quantity of medical services is

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

In the United States in 2012,the percentage of firms that employed between 3 and 199 workers and did not offer health insurance as a fringe benefit to the workers was about

What are two reasons why employees would prefer for their employer pay for their health insurance rather than receiving increased wages and paying for their own health insurance?

What is adverse selection?

What is the principle-agent problem?

In the United States in 2012,the percentage of people without some form of private health insurance was about

In 2013,the average height of adult males in the United States was

In the market for insurance,

Compared to other high-income countries,health care spending per person in the United States has been

Figure 5-4 Figure 5-4 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 5-4.If consumers paid the full price of medical services,the equilibrium quantity would be

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 efficient equilibrium

The health care system in ________ is referred to as socialized medicine,under which the government owns most of the hospitals and employs most of the doctors.

Of the following,the most to the rapid rise in health care costs in the United States can be attributed to

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