Question 1

Which of the following grew rapidly after the passage of the Medicare and Medicaid programs in the mid-1960s?

Accepted Answer

A) the share of healthcare expenditures financed directly by the consumer 
B) the share of healthcare expenditures financed by third parties 
C) the prices of healthcare relative to the prices of other goods and services 
D) both b and c 
A) the share of healthcare expenditures financed directly by the consumer 
B) the share of healthcare expenditures financed by third parties 
C) the prices of healthcare relative to the prices of other goods and services 
D) both b and c

Question 2

Which of the following is fully tax deductible (it is either subtracted or excluded from taxable income) under the current tax system of the United States?

Accepted Answer

A) out-of-pocket medical expenses 
B) healthcare insurance purchased through one's employer 
C) healthcare insurance purchased directly by an individual or family 
D) all of the above 
A) out-of-pocket medical expenses 
B) healthcare insurance purchased through one's employer 
C) healthcare insurance purchased directly by an individual or family 
D) all of the above

Question 3

Which of the following is the best example of a health-care service with a large public good component?

Accepted Answer

A) a hair-growing treatment provided to a twenty-five year-old single man 
B) heart bypass surgery provided to an employee and paid for by employer-funded insurance 
C) a vaccine that reduces the incidence of a communicable disease 
D) a hip replacement provided to a senior citizen 
A) a hair-growing treatment provided to a twenty-five year-old single man 
B) heart bypass surgery provided to an employee and paid for by employer-funded insurance 
C) a vaccine that reduces the incidence of a communicable disease 
D) a hip replacement provided to a senior citizen

Question 4

What percentage of U.S. healthcare expenditures is currently paid for by a third party, either the government or an insurance company?

Accepted Answer

A) less than 10 percent 
B) approximately 30 percent 
C) approximately 50 percent 
D) more than 85 percent 
A) less than 10 percent 
B) approximately 30 percent 
C) approximately 50 percent 
D) more than 85 percent

Question 5

A 2.9 percent payroll tax (1.45 percent levied on both the employee and the employer) imposed on current workers is used to finance the

Accepted Answer

A) Medicaid program that provides healthcare for the poor. 
B) hospitalization costs of Medicare beneficiaries. 
C) cost of physician services supplied to the elderly. 
D) healthcare costs of both the elderly and the poor. 
A) Medicaid program that provides healthcare for the poor. 
B) hospitalization costs of Medicare beneficiaries. 
C) cost of physician services supplied to the elderly. 
D) healthcare costs of both the elderly and the poor.

Question 6

Which of the following would encourage consumers to economize on their use of healthcare and producers to provide it more efficiently?

Accepted Answer

A) a reduction in out-of-pocket healthcare expenditures 
B) government subsidies that encourage people to purchase health insurance policies with first-dollar coverage and small co-payments 
C) Medicare reform that at least partially substituted defined benefits (funds that could be used to pay for healthcare or the purchase of insurance) for the present cost reimbursement system 
D) all of the above 
A) a reduction in out-of-pocket healthcare expenditures 
B) government subsidies that encourage people to purchase health insurance policies with first-dollar coverage and small co-payments 
C) Medicare reform that at least partially substituted defined benefits (funds that could be used to pay for healthcare or the purchase of insurance) for the present cost reimbursement system 
D) all of the above

Question 7

Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life during the years following 2011 will

Accepted Answer

A) reduce the overall demand for medical services because the elderly will not have to pay for hospitalization in the future. 
B) place downward pressure on healthcare prices. 
C) cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. 
D) do all of the above. 
A) reduce the overall demand for medical services because the elderly will not have to pay for hospitalization in the future. 
B) place downward pressure on healthcare prices. 
C) cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. 
D) do all of the above.

Question 8

Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life during the years following 2011 will

Accepted Answer

A) increase the demand for medical services and the share of those services financed by third parties. 
B) push both healthcare prices and expenditures upward. 
C) cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. 
D) do all of the above. 
A) increase the demand for medical services and the share of those services financed by third parties. 
B) push both healthcare prices and expenditures upward. 
C) cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. 
D) do all of the above.

Exam 22: Appendix: the Economics of Healthcare

Which of the following grew rapidly after the passage of the Medicare and Medicaid programs in the mid-1960s?

Which of the following is fully tax deductible (it is either subtracted or excluded from taxable income) under the current tax system of the United States?

Which of the following is the best example of a health-care service with a large public good component?

What percentage of U.S. healthcare expenditures is currently paid for by a third party, either the government or an insurance company?

A 2.9 percent payroll tax (1.45 percent levied on both the employee and the employer) imposed on current workers is used to finance the

Which of the following would encourage consumers to economize on their use of healthcare and producers to provide it more efficiently?

Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life during the years following 2011 will

Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life during the years following 2011 will

The Economic Approach

A: Some Tools of the Economist

B: Some Tools of the Economist

A: Supply, Demand, and the Market Process

B: Supply, Demand, and the Market Process

A: Supply and Demand: Applications and Extensions

B: Supply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Consumer Choice and Elasticity

A: Costs and the Supply of Goods

B: Costs and the Supply of Goods

A: Price Takers and the Competitive Process

B: Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

A: Price-Searcher Markets With High Entry Barriers

B: Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Appendix: Government Spending and Taxation

Appendix: the Economics of Social Security

Appendix: the Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Appendix: Great Debates in Economics: Keynes Versus Hayek

Appendix: the Crisis of 2008: Causes and Lessons for the Future

Appendix: Lessons From the Great Depression

Appendix:education: Problems and Performance

Appendix: Earnings Differences Between Men and Women

Appendix: the Question of Resource Exhaustion

Appendix: Do Labor Unions Increase the Wages of Workers

Appendix: Difficult Environmental Cases and the Role of Government

Filters