Question 1

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

Accepted Answer

A person's height partly relies on nutri

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 4

One reason why adverse selection problems arise in health insurance markets is that

Accepted Answer

A)  sick people are more likely to want health insurance than healthy people. 
B)  because of advances in medical technology, people are living longer. These medical advances are costly and drive up the price of insurance for everyone. 
C)  the average age of citizens of the United States has increased in recent years, and will continue to increase over the next 20 to 30 years. As older citizens retire, more and more of their medical bills will have to be paid by younger workers. 
D)  fewer men and women are choosing medical careers because of the increase in the cost of malpractice insurance. 
A)  sick people are more likely to want health insurance than healthy people. 
B)  because of advances in medical technology, people are living longer. These medical advances are costly and drive up the price of insurance for everyone. 
C)  the average age of citizens of the United States has increased in recent years, and will continue to increase over the next 20 to 30 years. As older citizens retire, more and more of their medical bills will have to be paid by younger workers. 
D)  fewer men and women are choosing medical careers because of the increase in the cost of malpractice insurance.

Question 5

In the United States from 1981 to 2009,deaths from all of the following declined substantially except

Accepted Answer

A)  cancer. 
B)  kidney disease. 
C)  heart attacks. 
D)  strokes. 
A)  cancer. 
B)  kidney disease. 
C)  heart attacks. 
D)  strokes.

Question 6

A key difficulty facing insurance companies is that people know more about their health than do insurance companies,and that those people who are seriously ill are the most likely to want to obtain health insurance.What is this phenomenon called?

Accepted Answer

A)  moral hazard 
B)  economic irrationality 
C)  asymmetric information 
D)  adverse selection 
A)  moral hazard 
B)  economic irrationality 
C)  asymmetric information 
D)  adverse selection

Question 7

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is

Accepted Answer

A)  inefficient market hypothesis. 
B)  moral hazard. 
C)  information disparity. 
D)  asymmetric information. 
A)  inefficient market hypothesis. 
B)  moral hazard. 
C)  information disparity. 
D)  asymmetric information.

Question 8

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 9

In the United States in 2010,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)  49%. 
C)  68%. 
D)  99%. 
A)  29%. 
B)  49%. 
C)  68%. 
D)  99%.

Question 10

In the United States in 2009,the percentage of people without any form of health insurance was about

Accepted Answer

A)  17%. 
B)  29%. 
C)  54%. 
D)  83%. 
A)  17%. 
B)  29%. 
C)  54%. 
D)  83%.

Question 11

What are the main sources of health insurance in the United States?

Accepted Answer

The percentage of Americans covered by v

Question 12

Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole.

Accepted Answer

A)  approximately equal to 
B)  slightly faster than 
C)  almost twice as fast as 
D)  less than half as fast as 
A)  approximately equal to 
B)  slightly faster than 
C)  almost twice as fast as 
D)  less than half as fast as

Question 13

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 the 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 14

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 15

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that repealing the tax preference for employer-provided health insurance would

Accepted Answer

A)  significantly reduce the effectiveness of the health care received by those enrolled in these programs. 
B)  increase overall spending on health care as consumers would have to pay a higher price for medical services. 
C)  drive up prices for health care coverage since insurance reimbursements to doctors would be reduced. 
D)  reduce spending by people enrolled in these programs by 33 percent. 
A)  significantly reduce the effectiveness of the health care received by those enrolled in these programs. 
B)  increase overall spending on health care as consumers would have to pay a higher price for medical services. 
C)  drive up prices for health care coverage since insurance reimbursements to doctors would be reduced. 
D)  reduce spending by people enrolled in these programs by 33 percent.

Question 16

The largest government-run health care system in the world,with 1.7 million employees,is in

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 17

In the United States,consumers usually pay ________ than the true cost of medical treatment because of ________.

Accepted Answer

A)  more; adverse selection 
B)  more; rising insurance premiums 
C)  less; third-party payers 
D)  less; rising insurance deductibles 
A)  more; adverse selection 
B)  more; rising insurance premiums 
C)  less; third-party payers 
D)  less; rising insurance deductibles

Question 18

When people who buy insurance change their behavior after the purchase because they are protected from loss by the insurance,the insurance market is said to face the problem of

Accepted Answer

A)  moral hazard. 
B)  adverse selection. 
C)  asymmetric information. 
D)  economic irrationality. 
A)  moral hazard. 
B)  adverse selection. 
C)  asymmetric information. 
D)  economic irrationality.

Question 19

Some economists believe that by making health care coverage mandatory for all individuals,the demand for medical services will likely ________,which will ________ the costs of 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 20

An analysis of the Patient Protection and Affordable Care Act (PPACA)by Medicare officials claims that additional annual health care spending over the next decade under the PPACA will

Accepted Answer

A)  more than double. 
B)  rise by 10 percent for the first 5 years and then fall by 20 percent for the remaining 5 years. 
C)  continually increase until it reaches an annual rate of 25 percent. 
D)  increase by less than 1 percent. 
A)  more than double. 
B)  rise by 10 percent for the first 5 years and then fall by 20 percent for the remaining 5 years. 
C)  continually increase until it reaches an annual rate of 25 percent. 
D)  increase by less than 1 percent.

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

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

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

One reason why adverse selection problems arise in health insurance markets is that

In the United States from 1981 to 2009,deaths from all of the following declined substantially except

A key difficulty facing insurance companies is that people know more about their health than do insurance companies,and that those people who are seriously ill are the most likely to want to obtain health insurance.What is this phenomenon called?

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is

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

In the United States in 2010,the percentage of firms that employed more than 200 workers and offered health insurance as a fringe benefit to the workers was about

In the United States in 2009,the percentage of people without any form of health insurance was about

What are the main sources of health insurance in the United States?

Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole.

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

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that repealing the tax preference for employer-provided health insurance would

The largest government-run health care system in the world,with 1.7 million employees,is in

In the United States,consumers usually pay than the true cost of medical treatment because of .

When people who buy insurance change their behavior after the purchase because they are protected from loss by the insurance,the insurance market is said to face the problem of

Some economists believe that by making health care coverage mandatory for all individuals,the demand for medical services will likely ,which will the costs of health care.

An analysis of the Patient Protection and Affordable Care Act (PPACA)by Medicare officials claims that additional annual health care spending over the next decade under the PPACA will

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

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 5: The Economics of Health Care

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

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

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

One reason why adverse selection problems arise in health insurance markets is that

In the United States from 1981 to 2009,deaths from all of the following declined substantially except

A key difficulty facing insurance companies is that people know more about their health than do insurance companies,and that those people who are seriously ill are the most likely to want to obtain health insurance.What is this phenomenon called?

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is

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

In the United States in 2010,the percentage of firms that employed more than 200 workers and offered health insurance as a fringe benefit to the workers was about

In the United States in 2009,the percentage of people without any form of health insurance was about

What are the main sources of health insurance in the United States?

Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole.

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

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that repealing the tax preference for employer-provided health insurance would

The largest government-run health care system in the world,with 1.7 million employees,is in

In the United States,consumers usually pay ________ than the true cost of medical treatment because of ________.

When people who buy insurance change their behavior after the purchase because they are protected from loss by the insurance,the insurance market is said to face the problem of

Some economists believe that by making health care coverage mandatory for all individuals,the demand for medical services will likely ________,which will ________ the costs of health care.

An analysis of the Patient Protection and Affordable Care Act (PPACA)by Medicare officials claims that additional annual health care spending over the next decade under the PPACA will

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

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

In the United States,consumers usually pay than the true cost of medical treatment because of .

Some economists believe that by making health care coverage mandatory for all individuals,the demand for medical services will likely ,which will the costs of health care.