Question 1

In the United States from 1981 to 2009,deaths from ________ increased largely due to the effects of increasing obesity.

Accepted Answer

A)  strokes 
B)  cancer 
C)  heart attacks 
D)  diabetes 
A)  strokes 
B)  cancer 
C)  heart attacks 
D)  diabetes

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  approximately equal to 
B)  slightly faster than 
C)  almost twice as slow as 
D)  more than twice as fast as 
A)  approximately equal to 
B)  slightly faster than 
C)  almost twice as slow as 
D)  more than twice as fast as

Question 4

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

Accepted Answer

A)  enacting 
B)  doubling 
C)  cutting in half 
D)  repealing 
A)  enacting 
B)  doubling 
C)  cutting in half 
D)  repealing

Question 5

Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (PPACA)?

Accepted Answer

A)  Pharmaceutical firms and health insurance firms will pay a new taxes. 
B)  Investors earning more than $200,000 will pay a new tax on their investment income. 
C)  Beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated. 
D)  Workers earning more than $200,000 will have their share of the Medicare payroll tax increase. 
A)  Pharmaceutical firms and health insurance firms will pay a new taxes. 
B)  Investors earning more than $200,000 will pay a new tax on their investment income. 
C)  Beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated. 
D)  Workers earning more than $200,000 will have their share of the Medicare payroll tax increase.

Question 6

In the United States,health care spending on people ________ is six times greater than on people ________.

Accepted Answer

A)  under age 3; over age 65 
B)  aged 18 to 24; 25 to 44 
C)  over age 65; aged 18 to 24 
D)  over age 65; aged 25 to 44 
A)  under age 3; over age 65 
B)  aged 18 to 24; 25 to 44 
C)  over age 65; aged 18 to 24 
D)  over age 65; aged 25 to 44

Question 7

Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide 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 8

Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

Accepted Answer

A) True 
 B)False

Question 9

Suppose you see a 2008 Ford Mustang GT advertised in the local newspaper for $15,000.If you knew the car was reliable,you would be willing to pay $17,000 for it.If you knew the car was unreliable,you would only be willing to pay $12,000 for it.Under what circumstances should you buy the car?

Accepted Answer

Because of the lemons problem you should

Question 10

In what ways do economists and policymakers who believe that market-based reforms are the key to improving the health care system criticize the Patient Protection and Affordable Care Act (PPACA)?

Accepted Answer

These people believe that the market for

Question 11

Briefly describe changes in life expectancy,average height,and infant mortality in the United States since 1850.

Accepted Answer

Life expectancy has increased from 38.3

Question 12

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

Accepted Answer

A)  eliminates asymmetric information for the insurer, but not for the insured. 
B)  eliminates asymmetric information for the insured, but not for the insurer. 
C)  eliminates asymmetric information for both the insurer and the insured. 
D)  reduces, but does not eliminate,, asymmetric information for both the insurer and the insured. 
A)  eliminates asymmetric information for the insurer, but not for the insured. 
B)  eliminates asymmetric information for the insured, but not for the insurer. 
C)  eliminates asymmetric information for both the insurer and the insured. 
D)  reduces, but does not eliminate,, asymmetric information for both the insurer and the insured.

Question 13

In the 1973 movie Save the Tiger,Jack Lemmon plays Harry Stoner,the CEO of a clothing manufacturer whose business has fallen on hard times.In one of the key scenes of the movie,Stoner tries to convince his partner that they should hire someone to burn one of their buildings in order to collect on their insurance policy. Harry Stoner's actions are an example of

Accepted Answer

A)  adverse selection. 
B)  moral hazard. 
C)  self-interest. 
D)  asymmetric information. 
A)  adverse selection. 
B)  moral hazard. 
C)  self-interest. 
D)  asymmetric information.

Question 14

Of the following high-income countries,which has the highest 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 15

How do adverse selection and moral hazard affect the market for insurance?

Accepted Answer

Both adverse selection and moral hazard

In the United States from 1981 to 2009,deaths from ________ increased largely due to the effects of increasing obesity.

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

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

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (PPACA)?

In the United States,health care spending on people is six times greater than on people .

Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide are known as

Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

Suppose you see a 2008 Ford Mustang GT advertised in the local newspaper for $15,000.If you knew the car was reliable,you would be willing to pay $17,000 for it.If you knew the car was unreliable,you would only be willing to pay $12,000 for it.Under what circumstances should you buy the car?

In what ways do economists and policymakers who believe that market-based reforms are the key to improving the health care system criticize the Patient Protection and Affordable Care Act (PPACA)?

Briefly describe changes in life expectancy,average height,and infant mortality in the United States since 1850.

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

How do adverse selection and moral hazard affect the market for insurance?

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

In the United States from 1981 to 2009,deaths from ________ increased largely due to the effects of increasing obesity.

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

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

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (PPACA)?

In the United States,health care spending on people ________ is six times greater than on people ________.

Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide are known as

Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

Suppose you see a 2008 Ford Mustang GT advertised in the local newspaper for $15,000.If you knew the car was reliable,you would be willing to pay $17,000 for it.If you knew the car was unreliable,you would only be willing to pay $12,000 for it.Under what circumstances should you buy the car?

In what ways do economists and policymakers who believe that market-based reforms are the key to improving the health care system criticize the Patient Protection and Affordable Care Act (PPACA)?

Briefly describe changes in life expectancy,average height,and infant mortality in the United States since 1850.

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

How do adverse selection and moral hazard affect the market for insurance?

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,health care spending on people is six times greater than on people .