Question 1

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

Accepted Answer

A)  Each state is required to establish an Affordable Insurance Exchange. 
B)  Small businesses with fewer than 50 employees are exempt from being required to participate in the program. 
C)  Low-income individuals are eligible for tax credits to offset the costs of buying health insurance. 
D)  None of the above are a part of the "state health insurance marketplaces" provision. 
A)  Each state is required to establish an Affordable Insurance Exchange. 
B)  Small businesses with fewer than 50 employees are exempt from being required to participate in the program. 
C)  Low-income individuals are eligible for tax credits to offset the costs of buying health insurance. 
D)  None of the above are a part of the "state health insurance marketplaces" provision.

Question 2

Identify and explain 4 of the difficulties in making cross-country comparisons in health care outcomes.

Accepted Answer

Data problems: Countries do not always c

Question 3

Briefly describe the most important differences between the market for health care and the market for other goods and services.

Accepted Answer

Doctors and hospitals that supply most h

Question 4

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 doctors receive for medical services?

Accepted Answer

A)  $25 
B)  $40 
C)  $55 
D)  >$55 
A)  $25 
B)  $40 
C)  $55 
D)  >$55

Question 5

In the United States in 2016,the health care industry was the largest employer in ________ states.

Accepted Answer

A)  7 
B)  27 
C)  35 
D)  48 
A)  7 
B)  27 
C)  35 
D)  48

Question 6

On average,people in high-income countries ________ than people in low-income countries.

Accepted Answer

A)  have a shorter life expectancy 
B)  are subject to a higher infant mortality rate 
C)  are taller 
D)  are exposed to more severe diseases 
A)  have a shorter life expectancy 
B)  are subject to a higher infant mortality rate 
C)  are taller 
D)  are exposed to more severe diseases

Question 7

In the United States in 2016,more than seventy percent of those who were not covered by health insurance

Accepted Answer

A)  are single and unemployed. 
B)  live in families in which at least one member has a job. 
C)  live in families in which all members are unemployed. 
D)  are retired from the workforce. 
A)  are single and unemployed. 
B)  live in families in which at least one member has a job. 
C)  live in families in which all members are unemployed. 
D)  are retired from the workforce.

Question 8

Adverse selection is a situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction.

Accepted Answer

A) True 
 B)False

Question 9

In the United States in 2016,the percentage of firms that employed between 3 and 199 workers and did not offer health insurance as a fringe benefit to the workers was about

Accepted Answer

A)  2%. 
B)  45%. 
C)  61%. 
D)  98%. 
A)  2%. 
B)  45%. 
C)  61%. 
D)  98%.

Question 10

Because of the positive externality of vaccinations,economic efficiency would be improved

Accepted Answer

A)  if fewer people were vaccinated. 
B)  if more people were vaccinated. 
C)  only if all people were vaccinated. 
D)  only if no people were vaccinated. 
A)  if fewer people were vaccinated. 
B)  if more people were vaccinated. 
C)  only if all people were vaccinated. 
D)  only if no people were vaccinated.

Question 11

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office

Accepted Answer

A)  employers have more incentive to allow employees time off for doctor visits. 
B)  doctors have less incentive to control their costs. 
C)  insurance companies have more incentive to approve medical procedures for their policy holders. 
D)  consumers have less incentive to visit the doctor's office on a more frequent basis. 
A)  employers have more incentive to allow employees time off for doctor visits. 
B)  doctors have less incentive to control their costs. 
C)  insurance companies have more incentive to approve medical procedures for their policy holders. 
D)  consumers have less incentive to visit the doctor's office on a more frequent basis.

Question 12

Suppose that in a market for used cars,there are good used cars and bad used cars (lemons).Consumers are willing to pay as much as $6,000 for a good used car but only $1,000 for a lemon.Sellers of good used cars value their cars at $5,000 each and sellers of lemons value their cars at $800 each.Buyers cannot tell if a used car is reliable or is a lemon.Based on this information,what is the likely outcome in the market for used cars?

Accepted Answer

A)  Both good used cars and lemons will sell for $4,500 each. 
B)  Only lemons will sell, for $800 each. 
C)  Both good used cars and lemons will sell for $1,000 each. 
D)  Most used cars offered for sale will be lemons. 
A)  Both good used cars and lemons will sell for $4,500 each. 
B)  Only lemons will sell, for $800 each. 
C)  Both good used cars and lemons will sell for $1,000 each. 
D)  Most used cars offered for sale will be lemons.

Question 13

Of the following,the most rapid rise in health care costs in the United States can be attributed to

Accepted Answer

A)  the cost of malpractice insurance. 
B)  the cost to treat uninsured patients. 
C)  slow growth in labor productivity in health care. 
D)  the cost of malpractice lawsuit settlements. 
A)  the cost of malpractice insurance. 
B)  the cost to treat uninsured patients. 
C)  slow growth in labor productivity in health care. 
D)  the cost of malpractice lawsuit settlements.

Question 14

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 market equilibrium

Accepted Answer

A)  the marginal social benefit is equal to the marginal cost. 
B)  the marginal social benefit is greater than the marginal cost. 
C)  the marginal social benefit is less than the marginal cost. 
D)  the marginal social benefit is zero. 
A)  the marginal social benefit is equal to the marginal cost. 
B)  the marginal social benefit is greater than the marginal cost. 
C)  the marginal social benefit is less than the marginal cost. 
D)  the marginal social benefit is zero.

Question 15

A typical consumer of health care in the United States

Accepted Answer

A)  pays the full price of his or her health care. 
B)  pays more than the full price of his or her health care. 
C)  does not pay any of the price of his or her health care. 
D)  does not pay the full price of his or her health care. 
A)  pays the full price of his or her health care. 
B)  pays more than the full price of his or her health care. 
C)  does not pay any of the price of his or her health care. 
D)  does not pay the full price of his or her health care.

Question 16

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

Accepted Answer

A)  approximately equal to 
B)  slightly faster than 
C)  almost twice as fast as 
D)  less than half as fast as 
A)  approximately equal to 
B)  slightly faster than 
C)  almost twice as fast as 
D)  less than half as fast as

Question 17

What is health insurance?

Accepted Answer

Health insurance is a contract

Question 18

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 19

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

Accepted Answer

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

Question 20

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

Accepted Answer

A)  is a primary cause of price increases. 
B)  reduces the incentive to work. 
C)  shifts out a country's production possibilities frontier. 
D)  increases consumer surplus. 
A)  is a primary cause of price increases. 
B)  reduces the incentive to work. 
C)  shifts out a country's production possibilities frontier. 
D)  increases consumer surplus.

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

Identify and explain 4 of the difficulties in making cross-country comparisons in health care outcomes.

Briefly describe the most important differences between the market for health care and the market for other goods and services.

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 doctors receive for medical services?

In the United States in 2016,the health care industry was the largest employer in ________ states.

On average,people in high-income countries ________ than people in low-income countries.

In the United States in 2016,more than seventy percent of those who were not covered by health insurance

Adverse selection is a situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction.

In the United States in 2016,the percentage of firms that employed between 3 and 199 workers and did not offer health insurance as a fringe benefit to the workers was about

Because of the positive externality of vaccinations,economic efficiency would be improved

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office

Of the following,the most rapid rise in health care costs in the United States can be attributed to

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 market equilibrium

A typical consumer of health care in the United States

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

What is health insurance?

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

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

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

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

Identify and explain 4 of the difficulties in making cross-country comparisons in health care outcomes.

Briefly describe the most important differences between the market for health care and the market for other goods and services.

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 doctors receive for medical services?

In the United States in 2016,the health care industry was the largest employer in ________ states.

On average,people in high-income countries ________ than people in low-income countries.

In the United States in 2016,more than seventy percent of those who were not covered by health insurance

Adverse selection is a situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction.

In the United States in 2016,the percentage of firms that employed between 3 and 199 workers and did not offer health insurance as a fringe benefit to the workers was about

Because of the positive externality of vaccinations,economic efficiency would be improved

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office

Of the following,the most rapid rise in health care costs in the United States can be attributed to

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 market equilibrium

A typical consumer of health care in the United States

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

What is health insurance?

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

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

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