Question 1

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 2

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

Accepted Answer

A) each state is required to establish an Affordable Insurance Exchange. 
B) small businesses with fewer than 50 employees are exempt from being required to participate in the program. 
C) low-income individuals are eligible for tax credits to offset the costs of buying health insurance. 
D) the marketplaces offer health insurance policies that meet certain specified requirements. 
A) each state is required to establish an Affordable Insurance Exchange. 
B) small businesses with fewer than 50 employees are exempt from being required to participate in the program. 
C) low-income individuals are eligible for tax credits to offset the costs of buying health insurance. 
D) the marketplaces offer health insurance policies that meet certain specified requirements.

Question 3

A doctor pursuing his own interests rather than the interests of his patients is an example of the principal-agent problem.

Accepted Answer

A) True 
 B)False

Question 4

In the United States, out-of-pocket spending on health care is about ________ percent of all health care spending.

Accepted Answer

A) 2 
B) 12 
C) 33 
D) 48 
A) 2 
B) 12 
C) 33 
D) 48

Question 5

Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending.Such changes would make it more likely that

Accepted Answer

A) consumers would pay prices closer to the actual costs for routine medical care. 
B) employers would provide more generous medical coverage to their employees. 
C) insurance deductibles would decrease. 
D) the quantity of medical services demanded would increase. 
A) consumers would pay prices closer to the actual costs for routine medical care. 
B) employers would provide more generous medical coverage to their employees. 
C) insurance deductibles would decrease. 
D) the quantity of medical services demanded would increase.

Question 6

Suppose consumers pay less than the true cost of medical services because a third party, such as an insurance company, pays most of the bill.Draw a graph showing the supply and demand for medical services with and without a third-party payer.Identify the market equilibrium without insurance, the market equilibrium with insurance, and the area representing the deadweight loss.Be sure to label the efficient and the market prices and quantities.

Accepted Answer

The answer of Suppose consumers pay less than the true...

Question 7

Changes in the health of the average person are an important indicator of changes in the standard of living.

Accepted Answer

A) True 
 B)False

Question 8

Over the past 160 years in the United States, life expectancy

Accepted Answer

A) has remained fairly constant. 
B) has slightly declined. 
C) has more than doubled. 
D) increased up to the 1950s and then declined for the next 60 years. 
A) has remained fairly constant. 
B) has slightly declined. 
C) has more than doubled. 
D) increased up to the 1950s and then declined for the next 60 years.

Question 9

The Congressional Budget Office estimates that the additional taxes and fees enacted under the ACA will be enough to pay for the plan and reduce the federal government's budget deficit.

Accepted Answer

A) True 
 B)False

Question 10

The health care system in Canada is referred to as ________, and is a system in which the government provides national health insurance to all Canadian residents.

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 11

In the United States in 2014, 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%.

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.

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

A doctor pursuing his own interests rather than the interests of his patients is an example of the principal-agent problem.

In the United States, out-of-pocket spending on health care is about ________ percent of all health care spending.

Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending.Such changes would make it more likely that

Changes in the health of the average person are an important indicator of changes in the standard of living.

Over the past 160 years in the United States, life expectancy

The Congressional Budget Office estimates that the additional taxes and fees enacted under the ACA will be enough to pay for the plan and reduce the federal government's budget deficit.

The health care system in Canada is referred to as ________, and is a system in which the government provides national health insurance to all Canadian residents.

In the United States in 2014, the percentage of people who received health insurance through a government program was about

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 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.

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

A doctor pursuing his own interests rather than the interests of his patients is an example of the principal-agent problem.

In the United States, out-of-pocket spending on health care is about ________ percent of all health care spending.

Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending.Such changes would make it more likely that

Changes in the health of the average person are an important indicator of changes in the standard of living.

Over the past 160 years in the United States, life expectancy

The Congressional Budget Office estimates that the additional taxes and fees enacted under the ACA will be enough to pay for the plan and reduce the federal government's budget deficit.

The health care system in Canada is referred to as ________, and is a system in which the government provides national health insurance to all Canadian residents.

In the United States in 2014, the percentage of people who received health insurance through a government program was about

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