Exam 5: The Economics of Health Care

Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase a health insurance policy?

Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection.

In the United States,the bulk of health care spending is paid by health insurance companies.Such a system is also called a third-party payer system where consumers of health care pay a nominal fee and the rest are paid by the health insurance provider.Why might such a system lead to an inefficient outcome?

All of the following are part of the "taxes" provision of the Patient Protection and Affordable Care Act (PPACA)except

If a buyer in an economic transaction has more information than the seller,the buyer benefits at the expense of the seller.This phenomenon is due to

Most doctors and hospitals operate as private businesses in all of the following countries except

If a doctor knows that an insurance company will pay for most of a patient's bill,the doctor has more of an incentive to require additional medical procedures and tests,even if the patient may not require them.This is an example of

In the United States from 1981 to 2009,deaths from diabetes increased largely due to the effects of

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

"Cost disease" refers to the tendency for low productivity in the service sector to lead to higher costs in those industries.

The Pre-Existing Condition Insurance Plan is a federally administered part of the Affordable Care Act,and is designed for people with pre-existing medical conditions to obtain insurance.By offering health insurance to all U.S.citizens with pre-existing medical conditions,the Pre-Existing Condition Insurance Plan eliminates ________ for both the insurer and the insured,and eliminates ________ for the issuer of the insurance policy.

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

Moral hazard refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.

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.

In the United States in 2009,over 90 percent of people without health insurance were below the age of 34.

The number of people receiving Medicare is expected to ________ by the year 2030.

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

The Congressional Budget Office estimates that the payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance account for ________ of health care costs in the United States.

In most circumstances,employees do not pay taxes on the value of health insurance their employers provide them.

What is moral hazard?