Question 1

The Patient Protection and Affordable Care Act (ACA)is scheduled to be fully implemented by 2019, at which point

Accepted Answer

A) current budget cuts are expected to have completely offset the cost of the program. 
B) more than 30 million additional individuals are expected to have health care coverage. 
C) all hospitals in the United States will be taken over by the federal government. 
D) private health insurance companies will no longer exist in the United States. 
A) current budget cuts are expected to have completely offset the cost of the program. 
B) more than 30 million additional individuals are expected to have health care coverage. 
C) all hospitals in the United States will be taken over by the federal government. 
D) private health insurance companies will no longer exist in the United States.

Question 2

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

Accepted Answer

Improvements in health make it possible

Question 3

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 4

What is moral hazard?

Accepted Answer

A) It refers to the private, self-interested actions that people pursue, which when taken collectively leads to a loss in economic surplus. 
B) It refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off. 
C) It refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. 
D) It refers to the actions people take before they enter into a transaction so as to mislead the other party to the transaction. 
A) It refers to the private, self-interested actions that people pursue, which when taken collectively leads to a loss in economic surplus. 
B) It refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off. 
C) It refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. 
D) It refers to the actions people take before they enter into a transaction so as to mislead the other party to the transaction.

Question 5

The Japanese system of universal health insurance requires no co-payments from residents for health services.

Accepted Answer

A) True 
 B)False

Question 6

Higher deductibles for employer-provided health care 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 7

The number of people receiving Medicare benefits is expected to ________ by the year 2025.

Accepted Answer

A) reach 5 million by 
B) stabilize 
C) decline by 10 percent 
D) grow to 74 million 
A) reach 5 million by 
B) stabilize 
C) decline by 10 percent 
D) grow to 74 million

Question 8

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 9

Of the following high-income countries, which has the lowest life expectancy at birth?

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 10

A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services.This would tend to ________ economic efficiency by ________ the costs of medical services

Accepted Answer

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

Question 11

On average, people in high-income countries ________ than people in low-income countries.

Accepted Answer

A) have a shorter life expectancy 
B) are subject to a higher infant mortality rate 
C) are taller 
D) are exposed to more severe diseases 
A) have a shorter life expectancy 
B) are subject to a higher infant mortality rate 
C) are taller 
D) are exposed to more severe diseases

Question 12

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 13

What is moral hazard?

Accepted Answer

Moral hazard is a tendency for

Question 14

The health care system in Japan is referred to as ________, under which every resident of Japan is required to enroll in either a private, or the government-provided, health insurance program.

Accepted Answer

A) an out-of-pocket system 
B) a single-payer health care system 
C) a universal health insurance system 
D) socialized medicine 
A) an out-of-pocket system 
B) a single-payer health care system 
C) a universal health insurance system 
D) socialized medicine

Question 15

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 16

A typical consumer of health care in the United States

Accepted Answer

A) pays the full price of his or her health care. 
B) pays more than the full price of his or her health care. 
C) does not pay any of the price of his or her health care. 
D) does not pay the full price of his or her health care. 
A) pays the full price of his or her health care. 
B) pays more than the full price of his or her health care. 
C) does not pay any of the price of his or her health care. 
D) does not pay the full price of his or her health care.

Question 17

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, what price do consumers pay for medical services?

Accepted Answer

A) $25 
B) $40 
C) $55 
D) >$55 
A) $25 
B) $40 
C) $55 
D) >$55

Question 18

If a state requires all drivers to buy auto insurance, the problem of adverse selection is eliminated.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) individuals were allowed to opt out of the insurance program if they could prove they had no serious health issues and did so before the act fully took effect in the year 2014. 
B) in 2016, fines for not having health insurance are the greater of $695 per person or 2.5 percent of income. 
C) individuals who do not acquire health insurance will be subject to a fine. 
D) with limited exceptions, every resident of the United States will be required to have health insurance that meets certain basic requirements. 
A) individuals were allowed to opt out of the insurance program if they could prove they had no serious health issues and did so before the act fully took effect in the year 2014. 
B) in 2016, fines for not having health insurance are the greater of $695 per person or 2.5 percent of income. 
C) individuals who do not acquire health insurance will be subject to a fine. 
D) with limited exceptions, every resident of the United States will be required to have health insurance that meets certain basic requirements.

Question 20

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.

The Patient Protection and Affordable Care Act (ACA)is scheduled to be fully implemented by 2019, at which point

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

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

What is moral hazard?

The Japanese system of universal health insurance requires no co-payments from residents for health services.

Higher deductibles for employer-provided health care will tend to shift the curve for medical services to the .

The number of people receiving Medicare benefits is expected to ________ by the year 2025.

Of the following high-income countries, which has the lowest life expectancy at birth?

A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services.This would tend to economic efficiency by the costs of medical services

On average, people in high-income countries ________ than people in low-income countries.

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

What is moral hazard?

The health care system in Japan is referred to as ________, under which every resident of Japan is required to enroll in either a private, or the government-provided, health insurance program.

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

A typical consumer of health care in the United States

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, what price do consumers pay for medical services?

If a state requires all drivers to buy auto insurance, the problem of adverse selection is eliminated.

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

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

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

The Patient Protection and Affordable Care Act (ACA)is scheduled to be fully implemented by 2019, at which point

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

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

What is moral hazard?

The Japanese system of universal health insurance requires no co-payments from residents for health services.

Higher deductibles for employer-provided health care will tend to shift the ________ curve for medical services to the ________.

The number of people receiving Medicare benefits is expected to ________ by the year 2025.

Of the following high-income countries, which has the lowest life expectancy at birth?

A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services.This would tend to ________ economic efficiency by ________ the costs of medical services

On average, people in high-income countries ________ than people in low-income countries.

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

What is moral hazard?

The health care system in Japan is referred to as ________, under which every resident of Japan is required to enroll in either a private, or the government-provided, health insurance program.

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

A typical consumer of health care in the United States

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, what price do consumers pay for medical services?

If a state requires all drivers to buy auto insurance, the problem of adverse selection is eliminated.

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

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

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

Higher deductibles for employer-provided health care will tend to shift the curve for medical services to the .

A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services.This would tend to economic efficiency by the costs of medical services