Question 1

The number of people receiving Medicare is expected to grow to 74 million by the year

Accepted Answer

A)  2105. 
B)  2020. 
C)  2025. 
D)  2075. 
A)  2105. 
B)  2020. 
C)  2025. 
D)  2075.

Question 2

In the United States in 2016,the percentage of people with some form of health insurance was about

Accepted Answer

A)  10%. 
B)  36%. 
C)  55%. 
D)  91%. 
A)  10%. 
B)  36%. 
C)  55%. 
D)  91%.

Question 3

Vaccinations tend to result in a positive externality.

Accepted Answer

A) True 
 B)False

Question 4

In the United States,out-of-pocket spending on health care per person

Accepted Answer

A)  has been rising since 1965. 
B)  has been falling since 1965. 
C)  has remained fairly steady since 1965. 
D)  fell from 1965 through 1995, then began to rise from 1995 to the present. 
A)  has been rising since 1965. 
B)  has been falling since 1965. 
C)  has remained fairly steady since 1965. 
D)  fell from 1965 through 1995, then began to rise from 1995 to the present.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  adverse selection. 
B)  rising insurance premiums. 
C)  third-party payers. 
D)  rising insurance deductibles. 
A)  adverse selection. 
B)  rising insurance premiums. 
C)  third-party payers. 
D)  rising insurance deductibles.

Question 7

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 8

A majority of people in the United States do not have private health insurance.

Accepted Answer

A) True 
 B)False

Question 9

Between 1981 and 2015,deaths from kidney disease increased largely due to the effects of

Accepted Answer

A)  increasing obesity. 
B)  increasing alcohol consumption. 
C)  increased smoking. 
D)  increased pollution. 
A)  increasing obesity. 
B)  increasing alcohol consumption. 
C)  increased smoking. 
D)  increased pollution.

Question 10

Vaccinations tend to result in a negative externality.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

Both adverse selection and moral hazard

Question 13

An increase in the number of medical procedures performed in doctor's offices rather than in hospital settings 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 14

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

Accepted Answer

A)  the aging population. 
B)  increases in the cost of providing health care. 
C)  increases in immigration. 
D)  declining income levels. 
A)  the aging population. 
B)  increases in the cost of providing health care. 
C)  increases in immigration. 
D)  declining income levels.

Question 15

Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as

Accepted Answer

A)  bad faith. 
B)  economic inefficiency. 
C)  moral hazard. 
D)  market failure. 
A)  bad faith. 
B)  economic inefficiency. 
C)  moral hazard. 
D)  market failure.

Question 16

Since 1960,out-of-pocket spending on health care has increased sharply as a fraction of all health care spending.

Accepted Answer

A) True 
 B)False

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

About ________ of research on new medicines is carried out in the United States.

Accepted Answer

A)  10 percent 
B)  one-half 
C)  two-thirds 
D)  90 percent 
A)  10 percent 
B)  one-half 
C)  two-thirds 
D)  90 percent

Question 19

Figure 5-4
   Figure 5-4 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 5-4.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 20

Figure 5-5
   Figure 5-5 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 5-5.If consumers paid the full price of medical services,the equilibrium quantity would be

Accepted Answer

A)  400. 
B)  800. 
C)  1,200. 
D)  > 1,200. 
A)  400. 
B)  800. 
C)  1,200. 
D)  > 1,200.

The number of people receiving Medicare is expected to grow to 74 million by the year

In the United States in 2016,the percentage of people with some form of health insurance was about

Vaccinations tend to result in a positive externality.

In the United States,out-of-pocket spending on health care per person

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

In the United States,consumers usually pay less 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

A majority of people in the United States do not have private health insurance.

Between 1981 and 2015,deaths from kidney disease increased largely due to the effects of

Vaccinations tend to result in a negative externality.

What is moral hazard?

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

An increase in the number of medical procedures performed in doctor's offices rather than in hospital settings will tend to shift the curve for medical services to the .

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

Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as

Since 1960,out-of-pocket spending on health care has increased sharply as a fraction of all health care spending.

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.

About ________ of research on new medicines is carried out in the United States.

Figure 5-4 Figure 5-4 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 5-4.With insurance and a third-party payer system,what price do consumers pay for medical services?

Figure 5-5 Figure 5-5 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 5-5.If consumers paid the full price of medical services,the equilibrium quantity would be

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

Exam 5: The Economics of Health Care

The number of people receiving Medicare is expected to grow to 74 million by the year

In the United States in 2016,the percentage of people with some form of health insurance was about

Vaccinations tend to result in a positive externality.

In the United States,out-of-pocket spending on health care per person

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

In the United States,consumers usually pay less 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

A majority of people in the United States do not have private health insurance.

Between 1981 and 2015,deaths from kidney disease increased largely due to the effects of

Vaccinations tend to result in a negative externality.

What is moral hazard?

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

An increase in the number of medical procedures performed in doctor's offices rather than in hospital settings will tend to shift the ________ curve for medical services to the ________.

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

Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as

Since 1960,out-of-pocket spending on health care has increased sharply as a fraction of all health care spending.

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.

About ________ of research on new medicines is carried out in the United States.

Figure 5-4 Figure 5-4 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 5-4.With insurance and a third-party payer system,what price do consumers pay for medical services?

Figure 5-5 Figure 5-5 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 5-5.If consumers paid the full price of medical services,the equilibrium quantity would be

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

An increase in the number of medical procedures performed in doctor's offices rather than in hospital settings will tend to shift the curve for medical services to the .