Question 1

In the United States in 2016, the percentage of firms that employed more than 200 workers and offered health insurance as a fringe benefit to the workers was about

Accepted Answer

A) 29%. 
B) 42%. 
C) 61%. 
D) 98%. 
A) 29%. 
B) 42%. 
C) 61%. 
D) 98%.

Question 2

If a buyer in an economic transaction has more information than the seller, the buyer benefits at the expense of the seller.This phenomenon is due to

Accepted Answer

A) moral hazard. 
B) adverse selection. 
C) economically irrational behavior. 
D) gains from trade. 
A) moral hazard. 
B) adverse selection. 
C) economically irrational behavior. 
D) gains from trade.

Question 3

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,

Accepted Answer

A) employers have more incentive to allow employees time off for doctor visits. 
B) doctors have less incentive to control their costs. 
C) insurance companies have more incentive to approve medical procedures for their policy holders. 
D) consumers have less incentive to visit the doctor's office on a more frequent basis. 
A) employers have more incentive to allow employees time off for doctor visits. 
B) doctors have less incentive to control their costs. 
C) insurance companies have more incentive to approve medical procedures for their policy holders. 
D) consumers have less incentive to visit the doctor's office on a more frequent basis.

Question 4

Because of the positive externality of vaccinations, economic efficiency would be improved

Accepted Answer

A) if fewer people were vaccinated. 
B) if more people were vaccinated. 
C) only if all people were vaccinated. 
D) only if no people were vaccinated. 
A) if fewer people were vaccinated. 
B) if more people were vaccinated. 
C) only if all people were vaccinated. 
D) only if no people were vaccinated.

Question 5

In the United States, health care spending per person is ________ the average for most other countries, even taking into account the effects of higher income per person.

Accepted Answer

A) slightly lower than 
B) significantly higher than 
C) significantly lower than 
D) comparable to 
A) slightly lower than 
B) significantly higher than 
C) significantly lower than 
D) comparable to

Question 6

All of the following are part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)except

Accepted Answer

A) pharmaceutical firms and health insurance firms pay new taxes. 
B) investors earning more than $200,000 pay a new tax on their investment income. 
C) beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated. 
D) workers earning more than $200,000 pay higher Medicare payroll taxes. 
A) pharmaceutical firms and health insurance firms pay new taxes. 
B) investors earning more than $200,000 pay a new tax on their investment income. 
C) beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated. 
D) workers earning more than $200,000 pay higher Medicare payroll taxes.

Question 7

The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as asymmetric information.

Accepted Answer

A) True 
 B)False

Question 8

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 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 9

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 market equilibrium price is

Accepted Answer

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

Question 10

Suppose that in a market for used cars, there are good used cars and bad used cars (lemons).Consumers are willing to pay as much as $6,000 for a good used car but only $1,000 for a lemon.Sellers of good used cars value their cars at $5,000 each and sellers of lemons value their cars at $800 each.Buyers cannot tell if a used car is reliable or is a lemon.Based on this information, what is the likely outcome in the market for used cars?

Accepted Answer

A) Sellers of good used cars will drop out of the market. 
B) Sellers of good used cars will incur losses. 
C) Sellers of lemons will drop out of the market. 
D) Used cars will sell for $3,000. 
A) Sellers of good used cars will drop out of the market. 
B) Sellers of good used cars will incur losses. 
C) Sellers of lemons will drop out of the market. 
D) Used cars will sell for $3,000.

Question 11

Due to adverse selection, very few lemons will be sold in the market for used cars.

Accepted Answer

A) True 
 B)False

In the United States in 2016, the percentage of firms that employed more than 200 workers and offered health insurance as a fringe benefit to the workers was about

If a buyer in an economic transaction has more information than the seller, the buyer benefits at the expense of the seller.This phenomenon is due to

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,

Because of the positive externality of vaccinations, economic efficiency would be improved

In the United States, health care spending per person is ________ the average for most other countries, even taking into account the effects of higher income per person.

All of the following are part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)except

The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as asymmetric information.

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 market equilibrium, the deadweight loss is equal to

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 market equilibrium price is

Due to adverse selection, very few lemons will be sold in the market for used cars.

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 firms that employed more than 200 workers and offered health insurance as a fringe benefit to the workers was about

If a buyer in an economic transaction has more information than the seller, the buyer benefits at the expense of the seller.This phenomenon is due to

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,

Because of the positive externality of vaccinations, economic efficiency would be improved

In the United States, health care spending per person is ________ the average for most other countries, even taking into account the effects of higher income per person.

All of the following are part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)except

The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as asymmetric information.

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 market equilibrium, the deadweight loss is equal to

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 market equilibrium price is

Due to adverse selection, very few lemons will be sold in the market for used cars.

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