Question 1

The Japanese system of universal health insurance requires no copayments from residents for health services.

Accepted Answer

A) True 
 B)False

Question 2

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?

Accepted Answer

A)  the company that issues the health insurance policy 
B)  the individual who is applying for the health insurance policy 
C)  the employer of the individual who is trying to purchase the health insurance policy 
D)  All parties in the health insurance market have access to the same level of information. 
A)  the company that issues the health insurance policy 
B)  the individual who is applying for the health insurance policy 
C)  the employer of the individual who is trying to purchase the health insurance policy 
D)  All parties in the health insurance market have access to the same level of information.

Question 3

In 2016,________ of the uninsured were younger than age 35.

Accepted Answer

A)  about 10 percent 
B)  less than one-third 
C)  over half 
D)  almost 85 percent 
A)  about 10 percent 
B)  less than one-third 
C)  over half 
D)  almost 85 percent

Question 4

In the United States from 1981 to 2015,deaths from which of the following increased?

Accepted Answer

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

Question 5

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.The market equilibrium quantity is ________ thousand vaccinations.

Accepted Answer

A)  100 
B)  200 
C)  300 
D)  >300 
A)  100 
B)  200 
C)  300 
D)  >300

Question 6

Most employees ________ pay taxes on the value of health insurance provided by employers,and most people ________ get a tax break when buying individual health insurance policies.

Accepted Answer

A)  do; do 
B)  do; do not 
C)  do not; do 
D)  do not; do not 
A)  do; do 
B)  do; do not 
C)  do not; do 
D)  do not; do not

Question 7

The overall mortality rate in the United States has remained fairly constant for the past 35 years.

Accepted Answer

A) True 
 B)False

Question 8

Consider a used car market in which half the cars are good and half are bad (lemons).A rational buyer in this market should

Accepted Answer

A)  offer to pay a price equal to the most she would pay for a good car. 
B)  offer to pay a price equal to the most she would pay for a lemon. 
C)  offer to pay a price somewhere between the price she would pay for a good car and the price she would pay for a lemon. 
D)  save up and buy a new car. 
A)  offer to pay a price equal to the most she would pay for a good car. 
B)  offer to pay a price equal to the most she would pay for a lemon. 
C)  offer to pay a price somewhere between the price she would pay for a good car and the price she would pay for a lemon. 
D)  save up and buy a new car.

Question 9

In the market for insurance

Accepted Answer

A)  buyers often have more information than sellers. 
B)  sellers often have better information than buyers. 
C)  sellers are protected from lawsuits brought by buyers. 
D)  demand is perfectly inelastic because, by law, home owners and automobile drivers must have insurance. 
A)  buyers often have more information than sellers. 
B)  sellers often have better information than buyers. 
C)  sellers are protected from lawsuits brought by buyers. 
D)  demand is perfectly inelastic because, by law, home owners and automobile drivers must have insurance.

Question 10

College education tends to result in a positive externality because the recipient receives the full benefit of the education.

Accepted Answer

A) True 
 B)False

Question 11

Economists John Cogan,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 12

In addition to covering the costs of unpredictable events,health insurance typically covers many planned expenses,such as routine checkups,annual physicals,and the cost of vaccinations.Because of this,health insurance

Accepted Answer

A)  discourages overuse of health care services. 
B)  encourages overuse of health care services. 
C)  generates an efficient quantity of health care services. 
D)  is not accepted by most doctors and hospitals. 
A)  discourages overuse of health care services. 
B)  encourages overuse of health care services. 
C)  generates an efficient quantity of health care services. 
D)  is not accepted by most doctors and hospitals.

Question 13

Figure 5-2
   Figure 5-2 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 5-2.The market equilibrium price is

Accepted Answer

A)  $60. 
B)  $50. 
C)  $40. 
D)  < $40. 
A)  $60. 
B)  $50. 
C)  $40. 
D)  < $40.

Question 14

The health care system in Japan is referred to as ________,under which every resident of Japan is required to enroll in either a private,or the government-provided,health insurance program.

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 15

The largest government-run health care system in the world,with 1.4 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 16

In the United States,doctors and hospitals that provide most health care are

Accepted Answer

A)  primarily private firms. 
B)  primarily employed by the government. 
C)  split evenly between private firms and employed by the government. 
D)  100 percent employed by the government. 
A)  primarily private firms. 
B)  primarily employed by the government. 
C)  split evenly between private firms and employed by the government. 
D)  100 percent employed by the government.

Question 17

Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents.

Accepted Answer

A) True 
 B)False

Question 18

Typically,the lower the level of income per person in a country,the lower the level of spending per person on health care.This relationship between income and spending indicates that health care is a

Accepted Answer

A)  normal good. 
B)  inferior good. 
C)  luxury. 
D)  necessity. 
A)  normal good. 
B)  inferior good. 
C)  luxury. 
D)  necessity.

Question 19

Pricing insurance policies is made difficult because buyers have more information than sellers.This difficulty is an example of

Accepted Answer

A)  moral hazard. 
B)  adverse selection. 
C)  asymmetric information. 
D)  the free-rider problem. 
A)  moral hazard. 
B)  adverse selection. 
C)  asymmetric information. 
D)  the free-rider problem.

Question 20

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.The market equilibrium price is

Accepted Answer

A)  $30. 
B)  $25. 
C)  $20. 
D)  <$20. 
A)  $30. 
B)  $25. 
C)  $20. 
D)  <$20.

The Japanese system of universal health insurance requires no copayments from residents for health services.

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?

In 2016,________ of the uninsured were younger than age 35.

In the United States from 1981 to 2015,deaths from which of the following increased?

Most employees pay taxes on the value of health insurance provided by employers,and most people get a tax break when buying individual health insurance policies.

The overall mortality rate in the United States has remained fairly constant for the past 35 years.

Consider a used car market in which half the cars are good and half are bad (lemons).A rational buyer in this market should

In the market for insurance

College education tends to result in a positive externality because the recipient receives the full benefit of the education.

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

In addition to covering the costs of unpredictable events,health insurance typically covers many planned expenses,such as routine checkups,annual physicals,and the cost of vaccinations.Because of this,health insurance

Figure 5-2 Figure 5-2 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 5-2.The market equilibrium price is

The health care system in Japan is referred to as ________,under which every resident of Japan is required to enroll in either a private,or the government-provided,health insurance program.

The largest government-run health care system in the world,with 1.4 million employees,is in

In the United States,doctors and hospitals that provide most health care are

Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents.

Typically,the lower the level of income per person in a country,the lower the level of spending per person on health care.This relationship between income and spending indicates that health care is a

Pricing insurance policies is made difficult because buyers have more information than sellers.This difficulty is an example of

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.The market equilibrium price is

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 Japanese system of universal health insurance requires no copayments from residents for health services.

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?

In 2016,________ of the uninsured were younger than age 35.

In the United States from 1981 to 2015,deaths from which of the following increased?

Most employees ________ pay taxes on the value of health insurance provided by employers,and most people ________ get a tax break when buying individual health insurance policies.

The overall mortality rate in the United States has remained fairly constant for the past 35 years.

Consider a used car market in which half the cars are good and half are bad (lemons).A rational buyer in this market should

In the market for insurance

College education tends to result in a positive externality because the recipient receives the full benefit of the education.

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

In addition to covering the costs of unpredictable events,health insurance typically covers many planned expenses,such as routine checkups,annual physicals,and the cost of vaccinations.Because of this,health insurance

Figure 5-2 Figure 5-2 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 5-2.The market equilibrium price is

The health care system in Japan is referred to as ________,under which every resident of Japan is required to enroll in either a private,or the government-provided,health insurance program.

The largest government-run health care system in the world,with 1.4 million employees,is in

In the United States,doctors and hospitals that provide most health care are

Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents.

Typically,the lower the level of income per person in a country,the lower the level of spending per person on health care.This relationship between income and spending indicates that health care is a

Pricing insurance policies is made difficult because buyers have more information than sellers.This difficulty is an example of

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.The market equilibrium price is

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

Most employees pay taxes on the value of health insurance provided by employers,and most people get a tax break when buying individual health insurance policies.