Question 1

Health insurance plans which typically reimburse doctors mainly by paying a flat fee per patient are known as

Accepted Answer

A) fee-for-service plans. 
B) preferred provider organizations. 
C) single-health-payer systems. 
D) health maintenance organizations. 
A) fee-for-service plans. 
B) preferred provider organizations. 
C) single-health-payer systems. 
D) health maintenance organizations.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The overall decline in death rates in the United States since 1981 was due to all of the following except

Accepted Answer

A) a decline in smoking. 
B) the decline in the population. 
C) the availability of new prescription drugs. 
D) new surgical techniques. 
A) a decline in smoking. 
B) the decline in the population. 
C) the availability of new prescription drugs. 
D) new surgical techniques.

Question 4

The rising cost of malpractice insurance 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 5

In the United States in 2014, the percentage of people without any form of health insurance was about

Accepted Answer

A) 10%. 
B) 29%. 
C) 64%. 
D) 83%. 
A) 10%. 
B) 29%. 
C) 64%. 
D) 83%.

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.The efficient equilibrium price is

Accepted Answer

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

Question 7

Life expectancy at birth in the United States has more than doubled since 1850.

Accepted Answer

A) True 
 B)False

Question 8

In the United States in 2014, the percentage of people that directly purchased an individual or family health insurance policy from an insurance company was about

Accepted Answer

A) 2%. 
B) 15%. 
C) 17%. 
D) 26%. 
A) 2%. 
B) 15%. 
C) 17%. 
D) 26%.

Question 9

Typically, the higher the level of income per person in a country, the higher the level of spending per person on health care.This relationship between income and spending indicates that health care is a

Accepted Answer

A) normal good. 
B) inferior good. 
C) luxury. 
D) necessity. 
A) normal good. 
B) inferior good. 
C) luxury. 
D) necessity.

Question 10

The aging of the U.S.population has tended to ________ spending on health care, and the development of new drugs and medical equipment has tended to ________ spending on health care.

Accepted Answer

A) increase; increase 
B) increase; decrease 
C) decrease; increase 
D) decrease; decrease 
A) increase; increase 
B) increase; decrease 
C) decrease; increase 
D) decrease; decrease

Question 11

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

Accepted Answer

A) individuals with pre-existing medical conditions are able to acquire health insurance. 
B) all policies must provide coverage for dependant children up to age 26. 
C) lifetime dollar maximums on coverage are prohibited. 
D) limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated. 
A) individuals with pre-existing medical conditions are able to acquire health insurance. 
B) all policies must provide coverage for dependant children up to age 26. 
C) lifetime dollar maximums on coverage are prohibited. 
D) limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated.

Question 12

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

Accepted Answer

A) increase federal government spending by about $2 trillion over 10 years. 
B) cost the government significantly more than the additional taxes and fees enacted under the law will bring in. 
C) eliminate the budget deficit within 10 years. 
D) actually reduce government spending over a 20 year period. 
A) increase federal government spending by about $2 trillion over 10 years. 
B) cost the government significantly more than the additional taxes and fees enacted under the law will bring in. 
C) eliminate the budget deficit within 10 years. 
D) actually reduce government spending over a 20 year period.

Question 13

Of the following high-income countries, which has the lowest mortality ratio for cancer?

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 14

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) they demand a larger quantity of health care services than they would if they paid a price that better represented the true cost of providing the service. 
B) they demand a smaller quantity of health care services than they would if they paid a price that better represented the true cost of providing the service. 
C) the doctors supply a smaller quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. 
D) the insurance companies provide a larger quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. 
A) they demand a larger quantity of health care services than they would if they paid a price that better represented the true cost of providing the service. 
B) they demand a smaller quantity of health care services than they would if they paid a price that better represented the true cost of providing the service. 
C) the doctors supply a smaller quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. 
D) the insurance companies provide a larger quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service.

Question 15

What is the principle-agent problem?

Accepted Answer

The principle-agent problem is

Question 16

What is the main difference between a single-payer health care system and socialized medicine?

Accepted Answer

A single-payer health care system, such

Question 17

In markets with asymmetric information

Accepted Answer

A) moral hazard causes adverse selection which in turn causes asymmetric information. 
B) adverse selection causes moral hazard which in turn causes asymmetric information. 
C) asymmetric information causes moral hazard and then it causes adverse selection. 
D) asymmetric information causes adverse selection and then it causes moral hazard. 
A) moral hazard causes adverse selection which in turn causes asymmetric information. 
B) adverse selection causes moral hazard which in turn causes asymmetric information. 
C) asymmetric information causes moral hazard and then it causes adverse selection. 
D) asymmetric information causes adverse selection and then it causes moral hazard.

Question 18

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.

Question 19

In the United States, total health care spending per person has been ________, and out-of-pocket spending on health care per person has been ________.

Accepted Answer

A) rising; rising 
B) rising; falling 
C) falling; rising 
D) falling; falling 
A) rising; rising 
B) rising; falling 
C) falling; rising 
D) falling; falling

Question 20

In a market with positive externalities, the market equilibrium price will be less than the efficient equilibrium price.

Accepted Answer

A) True 
 B)False

Health insurance plans which typically reimburse doctors mainly by paying a flat fee per patient are known as

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

The overall decline in death rates in the United States since 1981 was due to all of the following except

The rising cost of malpractice insurance is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

In the United States in 2014, the percentage of people without any form of health insurance was about

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

Life expectancy at birth in the United States has more than doubled since 1850.

In the United States in 2014, the percentage of people that directly purchased an individual or family health insurance policy from an insurance company was about

Typically, the higher the level of income per person in a country, the higher the level of spending per person on health care.This relationship between income and spending indicates that health care is a

The aging of the U.S.population has tended to spending on health care, and the development of new drugs and medical equipment has tended to spending on health care.

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

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

Of the following high-income countries, which has the lowest mortality ratio for cancer?

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

What is the principle-agent problem?

What is the main difference between a single-payer health care system and socialized medicine?

In markets with asymmetric information

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

In the United States, total health care spending per person has been , and out-of-pocket spending on health care per person has been .

In a market with positive externalities, the market equilibrium price will be less than the efficient equilibrium price.

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 More Realistic Setting

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

Health insurance plans which typically reimburse doctors mainly by paying a flat fee per patient are known as

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

The overall decline in death rates in the United States since 1981 was due to all of the following except

The rising cost of malpractice insurance is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

In the United States in 2014, the percentage of people without any form of health insurance was about

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

Life expectancy at birth in the United States has more than doubled since 1850.

In the United States in 2014, the percentage of people that directly purchased an individual or family health insurance policy from an insurance company was about

Typically, the higher the level of income per person in a country, the higher the level of spending per person on health care.This relationship between income and spending indicates that health care is a

The aging of the U.S.population has tended to ________ spending on health care, and the development of new drugs and medical equipment has tended to ________ spending on health care.

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

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

Of the following high-income countries, which has the lowest mortality ratio for cancer?

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

What is the principle-agent problem?

What is the main difference between a single-payer health care system and socialized medicine?

In markets with asymmetric information

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

In the United States, total health care spending per person has been ________, and out-of-pocket spending on health care per person has been ________.

In a market with positive externalities, the market equilibrium price will be less than the efficient equilibrium price.

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 More Realistic Setting

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 aging of the U.S.population has tended to spending on health care, and the development of new drugs and medical equipment has tended to spending on health care.

In the United States, total health care spending per person has been , and out-of-pocket spending on health care per person has been .