Question 1

Consider a used car market in which half the cars are good and half are bad (lemons).If buyers are rational,the prices being offered for used cars will result in

Accepted Answer

A)  an equal proportion of a good cars and lemons being sold in an efficient market. 
B)  a larger proportion of good cars being sold and consequently, consumer surplus is increased. 
C)  a larger proportion of lemons being sold and consequently, producer surplus is increased. 
D)  an equal proportion of good cars and lemons being sold in an inefficient market. 
A)  an equal proportion of a good cars and lemons being sold in an efficient market. 
B)  a larger proportion of good cars being sold and consequently, consumer surplus is increased. 
C)  a larger proportion of lemons being sold and consequently, producer surplus is increased. 
D)  an equal proportion of good cars and lemons being sold in an inefficient market.

Question 2

Growth in labor productivity in the economy as a whole has been ________ the growth in 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 3

In 1960,out-of-pocket spending on health care in the United States was

Accepted Answer

A)  2.2 percent. 
B)  6 percent. 
C)  48 percent. 
D)  64 percent. 
A)  2.2 percent. 
B)  6 percent. 
C)  48 percent. 
D)  64 percent.

Question 4

In most circumstances,employees pay taxes on the value of health insurance their employers provide them.

Accepted Answer

A) True 
 B)False

Question 5

As a percentage of all spending on health care,out-of-pocket spending has ________ in the United States.

Accepted Answer

A)  remained fairly constant for the last 50 years 
B)  steadily declined for the past 50 years 
C)  rapidly increased for the last 50 years 
D)  erratically increased and decreased over the past 50 years 
A)  remained fairly constant for the last 50 years 
B)  steadily declined for the past 50 years 
C)  rapidly increased for the last 50 years 
D)  erratically increased and decreased over the past 50 years

Question 6

The number of people receiving Medicare coverage is expected to ________ by the year 2025.

Accepted Answer

A)  reach 5 million by 
B)  stabilize 
C)  decline by 10 percent 
D)  grow to 74 million 
A)  reach 5 million by 
B)  stabilize 
C)  decline by 10 percent 
D)  grow to 74 million

Question 7

In the United States in 2016,the percentage of people without any form of health insurance was about

Accepted Answer

A)  9%. 
B)  29%. 
C)  64%. 
D)  83%. 
A)  9%. 
B)  29%. 
C)  64%. 
D)  83%.

Question 8

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 price they would pay is

Accepted Answer

A)  $40. 
B)  $55. 
C)  $65. 
D)  > $65. 
A)  $40. 
B)  $55. 
C)  $65. 
D)  > $65.

Question 9

The health care system in the United Kingdom is referred to as ________,under which the government owns most of the hospitals and employs most of the doctors.

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 10

Federal and state governments in the United States pay for ________ of health care spending.

Accepted Answer

A)  less than 10 percent 
B)  approximately 34 percent 
C)  just over half 
D)  more than 80 percent 
A)  less than 10 percent 
B)  approximately 34 percent 
C)  just over half 
D)  more than 80 percent

Question 11

For a given level of compensation,the ________ a firm pays for your health insurance,the ________ it will pay you in wages.

Accepted Answer

A)  more; more 
B)  less; less 
C)  less; more 
D)  Health insurance payments and wages are not related. 
A)  more; more 
B)  less; less 
C)  less; more 
D)  Health insurance payments and wages are not related.

Question 12

Suppose you see a 2006 Scion xB Sport Wagon advertised in the local newspaper for $4,500.If you knew the car was reliable,you would be willing to pay $6,000 for it.If you knew the car was unreliable,you would only be willing to pay $2,500 for it.Under what circumstances should you buy the car at the asking price?

Accepted Answer

Because of the lemons problem you should

Question 13

Suppose you see a 2012 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 at the asking price?

Accepted Answer

Because of the lemons problem you should

Question 14

Which of the following is not part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA)?

Accepted Answer

A)  Individuals with pre-existing medical conditions are able to acquire health insurance. 
B)  All policies must provide coverage for dependant children up to age 26. 
C)  Lifetime dollar maximums on coverage are prohibited. 
D)  Limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated. 
A)  Individuals with pre-existing medical conditions are able to acquire health insurance. 
B)  All policies must provide coverage for dependant children up to age 26. 
C)  Lifetime dollar maximums on coverage are prohibited. 
D)  Limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated.

Question 15

Figure 5-1
   Figure 5-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-1.At the efficient equilibrium

Accepted Answer

A)  economic surplus is maximized. 
B)  economic surplus is minimized. 
C)  economic surplus is zero. 
D)  economic surplus is negative. 
A)  economic surplus is maximized. 
B)  economic surplus is minimized. 
C)  economic surplus is zero. 
D)  economic surplus is negative.

Question 16

Why might a young,healthy person choose not to buy health insurance?

Accepted Answer

if you are healthy and rarely

Question 17

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

Accepted Answer

An externality is a benefit or cost that

Consider a used car market in which half the cars are good and half are bad (lemons).If buyers are rational,the prices being offered for used cars will result in

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

In 1960,out-of-pocket spending on health care in the United States was

In most circumstances,employees pay taxes on the value of health insurance their employers provide them.

As a percentage of all spending on health care,out-of-pocket spending has ________ in the United States.

The number of people receiving Medicare coverage is expected to ________ by the year 2025.

In the United States in 2016,the percentage of people without any form of health insurance was about

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 price they would pay is

The health care system in the United Kingdom is referred to as ________,under which the government owns most of the hospitals and employs most of the doctors.

Federal and state governments in the United States pay for ________ of health care spending.

For a given level of compensation,the a firm pays for your health insurance,the it will pay you in wages.

Which of the following is not part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA)?

Figure 5-1 Figure 5-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 5-1.At the efficient equilibrium

Why might a young,healthy person choose not to buy health insurance?

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

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

Consider a used car market in which half the cars are good and half are bad (lemons).If buyers are rational,the prices being offered for used cars will result in

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

In 1960,out-of-pocket spending on health care in the United States was

In most circumstances,employees pay taxes on the value of health insurance their employers provide them.

As a percentage of all spending on health care,out-of-pocket spending has ________ in the United States.

The number of people receiving Medicare coverage is expected to ________ by the year 2025.

In the United States in 2016,the percentage of people without any form of health insurance was about

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 price they would pay is

The health care system in the United Kingdom is referred to as ________,under which the government owns most of the hospitals and employs most of the doctors.

Federal and state governments in the United States pay for ________ of health care spending.

For a given level of compensation,the ________ a firm pays for your health insurance,the ________ it will pay you in wages.

Which of the following is not part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA)?

Figure 5-1 Figure 5-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 5-1.At the efficient equilibrium

Why might a young,healthy person choose not to buy health insurance?

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

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

For a given level of compensation,the a firm pays for your health insurance,the it will pay you in wages.