Question 1

In the United States in 2016, the percentage of people without any form of health insurance was about

Accepted Answer

A) 9%. 
B) 29%. 
C) 64%. 
D) 83%. 
A) 9%. 
B) 29%. 
C) 64%. 
D) 83%.

Question 2

Figure 7-2
   
Figure 7-2 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 7-2.With insurance and a third-party payer system, the equilibrium quantity of medical services is

Accepted Answer

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

Question 3

Consider a used car market in which half the cars are good and half are bad (lemons).Suppose the average price of a good car is $9,000 and the average price of a lemon is $3,000.If rational buyers are willing to pay $6,000 for a used car, then sellers will agree to sell mostly lemons at this price.What is the term used to describe this situation?

Accepted Answer

A) moral hazard 
B) adverse selection 
C) an efficient market 
D) economic irrationality 
A) moral hazard 
B) adverse selection 
C) an efficient market 
D) economic irrationality

Question 4

On average, people in the United States spend a greater percentage of their income on health care than do people in most other countries.

Accepted Answer

A) True 
 B)False

Question 5

What is moral hazard?

Accepted Answer

Moral hazard is a tendency for

Question 6

Figure 7-1
   
Figure 7-1 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 7-1.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 7

In the United States in 2016, the percentage of people who received health insurance through a government program was about

Accepted Answer

A) 10%. 
B) 16%. 
C) 36%. 
D) 64%. 
A) 10%. 
B) 16%. 
C) 36%. 
D) 64%.

Question 8

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

Question 9

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

Accepted Answer

Improvements in health make it possible

Question 10

Figure 7-1
   
Figure 7-1 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 7-1.The efficient equilibrium price is

Accepted Answer

A) $30. 
B) $25. 
C) $20. 
D) <$20. 
A) $30. 
B) $25. 
C) $20. 
D) <$20.

Question 11

The Japanese system of universal health insurance requires no copayments from residents for health services.

Accepted Answer

A) True 
 B)False

Question 12

Health insurance typically pays for most preventive care procedures in all of the following countries except

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 13

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 14

Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Figure 7-2
   
Figure 7-2 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 7-2.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

In the United States from 1981 to 2015, deaths from all of the following declined substantially except

Accepted Answer

A) cancer. 
B) kidney disease. 
C) heart attacks. 
D) strokes. 
A) cancer. 
B) kidney disease. 
C) heart attacks. 
D) strokes.

Question 18

In most circumstances, employees do not pay taxes on the value of health insurance their employers provide them.

Accepted Answer

A) True 
 B)False

Question 19

The increase in the number of surgeries performed outside hospitals will tend to shift the ________ curve for medical services to the ________.

Accepted Answer

A) demand; left 
B) demand; right 
C) supply; left 
D) supply; right 
A) demand; left 
B) demand; right 
C) supply; left 
D) supply; right

Question 20

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.

In the United States in 2016, the percentage of people without any form of health insurance was about

Figure 7-2 Figure 7-2 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 7-2.With insurance and a third-party payer system, the equilibrium quantity of medical services is

On average, people in the United States spend a greater percentage of their income on health care than do people in most other countries.

What is moral hazard?

Figure 7-1 Figure 7-1 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 7-1.At the efficient equilibrium,

In the United States in 2016, the percentage of people who received health insurance through a government program was about

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

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

Figure 7-1 Figure 7-1 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 7-1.The efficient equilibrium price is

The Japanese system of universal health insurance requires no copayments from residents for health services.

Health insurance typically pays for most preventive care procedures in all of the following countries except

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

Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection.

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

Figure 7-2 Figure 7-2 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 7-2.If consumers paid the full price of medical services, the equilibrium quantity would be

In the United States from 1981 to 2015, deaths from all of the following declined substantially except

In most circumstances, employees do not pay taxes on the value of health insurance their employers provide them.

The increase in the number of surgeries performed outside hospitals will tend to shift the curve for medical services to the .

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

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

Exam 7: The Economics of Health Care

In the United States in 2016, the percentage of people without any form of health insurance was about

Figure 7-2 Figure 7-2 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 7-2.With insurance and a third-party payer system, the equilibrium quantity of medical services is

On average, people in the United States spend a greater percentage of their income on health care than do people in most other countries.

What is moral hazard?

Figure 7-1 Figure 7-1 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 7-1.At the efficient equilibrium,

In the United States in 2016, the percentage of people who received health insurance through a government program was about

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

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

Figure 7-1 Figure 7-1 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 7-1.The efficient equilibrium price is

The Japanese system of universal health insurance requires no copayments from residents for health services.

Health insurance typically pays for most preventive care procedures in all of the following countries except

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

Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection.

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

Figure 7-2 Figure 7-2 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 7-2.If consumers paid the full price of medical services, the equilibrium quantity would be

In the United States from 1981 to 2015, deaths from all of the following declined substantially except

In most circumstances, employees do not pay taxes on the value of health insurance their employers provide them.

The increase in the number of surgeries performed outside hospitals will tend to shift the ________ curve for medical services to the ________.

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

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

The increase in the number of surgeries performed outside hospitals will tend to shift the curve for medical services to the .