Question 1

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

Accepted Answer

A) approximately equal to 
B) slightly faster than 
C) almost twice as slow as 
D) more than twice as fast as 
A) approximately equal to 
B) slightly faster than 
C) almost twice as slow as 
D) more than twice as fast as

Question 2

In 2013,health care made up ________ of the U.S.economy.

Accepted Answer

A) about 2 percent 
B) roughly 8 percent 
C) more than one-sixth 
D) almost two-thirds 
A) about 2 percent 
B) roughly 8 percent 
C) more than one-sixth 
D) almost two-thirds

Question 3

In 2012,employees covered by company-provided health insurance paid ________ percent of the cost of their own health insurance.

Accepted Answer

A) 3 
B) 18 
C) 37 
D) 65 
A) 3 
B) 18 
C) 37 
D) 65

Question 4

Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

Accepted Answer

A) nationalize health care so that all health services are government funded and operated 
B) give every citizen a fixed amount of money that can only be spent on health care services 
C) reimburse consumers for preventive health care expenditures so as to avoid costly emergency medical treatments in the future 
D) standardize the tax treatment of employer-based health insurance benefits and private spending on health care 
A) nationalize health care so that all health services are government funded and operated 
B) give every citizen a fixed amount of money that can only be spent on health care services 
C) reimburse consumers for preventive health care expenditures so as to avoid costly emergency medical treatments in the future 
D) standardize the tax treatment of employer-based health insurance benefits and private spending on health care

Question 5

Of the following U.S.presidents,which was the first to propose a national health insurance program to Congress?

Accepted Answer

A) Barack Obama 
B) Bill Clinton 
C) John F.Kennedy 
D) Harry Truman 
A) Barack Obama 
B) Bill Clinton 
C) John F.Kennedy 
D) Harry Truman

Question 6

Of the following high-income countries,which has the highest obesity rate?

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 7

The individual mandate provision of the ACA requires

Accepted Answer

A) every U.S.resident to have health insurance. 
B) every U.S.company to provide health insurance to its employees. 
C) every employed person to pay for his or her own health insurance. 
D) every private insurance company to provide free health care to its current policy holders. 
A) every U.S.resident to have health insurance. 
B) every U.S.company to provide health insurance to its employees. 
C) every employed person to pay for his or her own health insurance. 
D) every private insurance company to provide free health care to its current policy holders.

Question 8

How might a company that offers to handle all paperwork involved with a health insurance claim for a flat fee face the problem of adverse selection?

Accepted Answer

Adverse selection is the situation in wh

Question 9

In the 1973 movie Save the Tiger,Jack Lemmon plays Harry Stoner,the CEO of a clothing manufacturer whose business has fallen on hard times.In one of the key scenes of the movie,Stoner tries to convince his partner that they should hire someone to burn one of their buildings in order to collect on their insurance policy.Harry Stoner's actions are an example of

Accepted Answer

A) adverse selection. 
B) moral hazard. 
C) self-interest. 
D) asymmetric information. 
A) adverse selection. 
B) moral hazard. 
C) self-interest. 
D) asymmetric information.

Question 10

How can improvements in health increase a country's total income?

Accepted Answer

Improvements in health make it possible

Question 11

Consumers usually pay less than the total cost of medical treatment because

Accepted Answer

A) a third party, usually an insurance company, often pays most of the bill. 
B) the federal government pays for most medical procedures. 
C) competition forces doctors and hospitals to charge prices that do not cover their costs. 
D) a third party, usually an employer, often pays most of the bill. 
A) a third party, usually an insurance company, often pays most of the bill. 
B) the federal government pays for most medical procedures. 
C) competition forces doctors and hospitals to charge prices that do not cover their costs. 
D) a third party, usually an employer, often pays most of the bill.

Question 12

Replacing employment-based health care with a government-run system could reduce employers payments for their workers insurance,but the amount that they would have to pay in overall compensation

Accepted Answer

A) would remain essentially unchanged. 
B) would dramatically increase. 
C) would fall to zero. 
D) would dramatically decrease. 
A) would remain essentially unchanged. 
B) would dramatically increase. 
C) would fall to zero. 
D) would dramatically decrease.

Question 13

The rising cost of uninsured patients receiving treatment at hospital emergency rooms is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

Accepted Answer

A) True 
 B)False

Question 14

Under the Patient Protection and Affordable Care Act (ACA),individuals who do not have health insurance will be subject to a fine.

Accepted Answer

A) True 
 B)False

Question 15

A majority of people in the United States have private health insurance.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

What is health insurance?

Accepted Answer

Health insurance is a contract

Question 18

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.The market equilibrium price is

Accepted Answer

A) $60. 
B) $50. 
C) $40. 
D) <$40. 
A) $60. 
B) $50. 
C) $40. 
D) <$40.

Question 19

The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA)will increase government spending

Accepted Answer

A) by just under $1 trillion over 10 years. 
B) by more than the additional taxes and fees enacted under the law will bring in. 
C) by less than $50 billion over the next decade. 
D) by more than $20 trillion dollars over the next 5 years. 
A) by just under $1 trillion over 10 years. 
B) by more than the additional taxes and fees enacted under the law will bring in. 
C) by less than $50 billion over the next decade. 
D) by more than $20 trillion dollars over the next 5 years.

Question 20

Automobile insurance companies have a problem with people who buy insurance and then drive recklessly or take less care to avoid losses after being insured.In other words,the automobile insurance market is subject to

Accepted Answer

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

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

In 2013,health care made up ________ of the U.S.economy.

In 2012,employees covered by company-provided health insurance paid ________ percent of the cost of their own health insurance.

Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

Of the following U.S.presidents,which was the first to propose a national health insurance program to Congress?

Of the following high-income countries,which has the highest obesity rate?

The individual mandate provision of the ACA requires

How might a company that offers to handle all paperwork involved with a health insurance claim for a flat fee face the problem of adverse selection?

How can improvements in health increase a country's total income?

Consumers usually pay less than the total cost of medical treatment because

Replacing employment-based health care with a government-run system could reduce employers payments for their workers insurance,but the amount that they would have to pay in overall compensation

The rising cost of uninsured patients receiving treatment at hospital emergency rooms is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

Under the Patient Protection and Affordable Care Act (ACA),individuals who do not have health insurance will be subject to a fine.

A majority of people in the United States have private health insurance.

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

What is health insurance?

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.The market equilibrium price is

The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA)will increase government spending

Automobile insurance companies have a problem with people who buy insurance and then drive recklessly or take less care to avoid losses after being insured.In other words,the automobile insurance market is subject 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

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

In 2013,health care made up ________ of the U.S.economy.

In 2012,employees covered by company-provided health insurance paid ________ percent of the cost of their own health insurance.

Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

Of the following U.S.presidents,which was the first to propose a national health insurance program to Congress?

Of the following high-income countries,which has the highest obesity rate?

The individual mandate provision of the ACA requires

How might a company that offers to handle all paperwork involved with a health insurance claim for a flat fee face the problem of adverse selection?

How can improvements in health increase a country's total income?

Consumers usually pay less than the total cost of medical treatment because

Replacing employment-based health care with a government-run system could reduce employers payments for their workers insurance,but the amount that they would have to pay in overall compensation

The rising cost of uninsured patients receiving treatment at hospital emergency rooms is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

Under the Patient Protection and Affordable Care Act (ACA),individuals who do not have health insurance will be subject to a fine.

A majority of people in the United States have private health insurance.

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

What is health insurance?

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.The market equilibrium price is

The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA)will increase government spending

Automobile insurance companies have a problem with people who buy insurance and then drive recklessly or take less care to avoid losses after being insured.In other words,the automobile insurance market is subject 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