Question 1

Among the reasons that health care expenditures have grown so rapidly in the United States over the last two decades are all of the following EXCEPT

Accepted Answer

A)  an emphasis on wellness programs and preventive medicine. 
B)  the aging of the U.S. population. 
C)  expensive new medical technologies. 
D)  third-party financing. 
A)  an emphasis on wellness programs and preventive medicine. 
B)  the aging of the U.S. population. 
C)  expensive new medical technologies. 
D)  third-party financing.

Question 2

An example of third-party financing of health care is

Accepted Answer

A)  patients paying for their visit to the doctor. 
B)  patients not going to the doctor in order to save money. 
C)  a patient going to another doctor for a second or a third opinion. 
D)  Medicare. 
A)  patients paying for their visit to the doctor. 
B)  patients not going to the doctor in order to save money. 
C)  a patient going to another doctor for a second or a third opinion. 
D)  Medicare.

Question 3

"It is difficult to compare over time health care expenditures, costs, and output." Do you agree or disagree? Why?

Accepted Answer

Agree. First, expenditures and costs are

Question 4

What are the major criticisms of the Lorenz curve?

Accepted Answer

The Lorenz curve typically is presented

Question 5

Age is a determinant of income because

Accepted Answer

A)  with age typically come experience, education, and training that can increase income. 
B)  age contributes to costs as medical expenses increase. 
C)  older workers have accumulated more wealth. 
D)  older workers have accumulated less wealth. 
A)  with age typically come experience, education, and training that can increase income. 
B)  age contributes to costs as medical expenses increase. 
C)  older workers have accumulated more wealth. 
D)  older workers have accumulated less wealth.

Question 6

The 45° line on a Lorenz curve represents

Accepted Answer

A)  complete income equality. 
B)  complete income inequality. 
C)  complete wealth equality. 
D)  complete wealth inequality. 
A)  complete income equality. 
B)  complete income inequality. 
C)  complete wealth equality. 
D)  complete wealth inequality.

Question 7

Rising healthcare costs are attributable to

Accepted Answer

A)  people living longer and desiring more care. 
B)  reliance on expensive technology to support and prolong life. 
C)  third-party financing of healthcare costs. 
D)  all of the above 
A)  people living longer and desiring more care. 
B)  reliance on expensive technology to support and prolong life. 
C)  third-party financing of healthcare costs. 
D)  all of the above

Question 8

According to the text, government spending accounts for about ________ percent of all U.S. health care expenditures.

Accepted Answer

A)  70 
B)  10 
C)  30 
D)  40 
A)  70 
B)  10 
C)  30 
D)  40

Question 9

Which factor listed below does NOT help account for the age-earning cycle?

Accepted Answer

A)  productivity 
B)  number of hours worked each week 
C)  effects of aging 
D)  racial discrimination 
A)  productivity 
B)  number of hours worked each week 
C)  effects of aging 
D)  racial discrimination

Question 10

Once the national health care program goes into effect and more people will pay fewer of their health care expenses out of their own pockets than they did previously, we can expect

Accepted Answer

A)  the quantity of health care services demanded will increase. 
B)  the quantity of health care services demanded will decrease. 
C)  the quantity of health care services supplied will increase. 
D)  the quantity of health care services supplied will decrease. 
A)  the quantity of health care services demanded will increase. 
B)  the quantity of health care services demanded will decrease. 
C)  the quantity of health care services supplied will increase. 
D)  the quantity of health care services supplied will decrease.

Question 11

The federal government began officially measuring poverty in the

Accepted Answer

A)  1860s. 
B)  1900s. 
C)  1930s. 
D)  1960s. 
A)  1860s. 
B)  1900s. 
C)  1930s. 
D)  1960s.

Question 12

The age-earning cycle shows declining income as a person approaches retirement age because

Accepted Answer

A)  worker productivity is increasing rapidly. 
B)  worker and hours worked diminish. 
C)  companies choose to promote these workers faster. 
D)  companies add-in Social Security payments as a supplement. 
A)  worker productivity is increasing rapidly. 
B)  worker and hours worked diminish. 
C)  companies choose to promote these workers faster. 
D)  companies add-in Social Security payments as a supplement.

Question 13

Economic discrimination exists when

Accepted Answer

A)  there is an unequal distribution of income in a country. 
B)  both income and wealth are unequally distributed in a country. 
C)  there is unequal access to education. 
D)  workers with the same marginal revenue products are paid different wages. 
A)  there is an unequal distribution of income in a country. 
B)  both income and wealth are unequally distributed in a country. 
C)  there is unequal access to education. 
D)  workers with the same marginal revenue products are paid different wages.

Question 14

Which of the distributive standards does NOT involve a value judgment?

Accepted Answer

A)  Productivity standard 
B)  Egalitarian standard 
C)  Merit standard 
D)  All of the standards involve value judgments. 
A)  Productivity standard 
B)  Egalitarian standard 
C)  Merit standard 
D)  All of the standards involve value judgments.

Question 15

How does the distribution of wealth differ from the distribution of income in the United States?

Accepted Answer

As conventionally measured, the distribu

Question 16

Why doesn't the age-earning cycle continuously increase until retirement age?

Accepted Answer

The typical worker sees a decline in ear

Question 17

-Refer to the above figure. Which of the above panels represents complete income equality?

Accepted Answer

A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  Panel D 
A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  Panel D

Question 18

As a result of moral hazard,

Accepted Answer

A)  both physicians and hospitals order more procedures. 
B)  physicians and hospital administrators have no incentive to raise costs. 
C)  patients increasingly have to worry about the expense of operations and other medical procedures. 
D)  both physicians and hospitals have a financial interest in trying to keep hospital costs down. 
A)  both physicians and hospitals order more procedures. 
B)  physicians and hospital administrators have no incentive to raise costs. 
C)  patients increasingly have to worry about the expense of operations and other medical procedures. 
D)  both physicians and hospitals have a financial interest in trying to keep hospital costs down.

Question 19

Since 1929, the distribution of money income in the United States has

Accepted Answer

A)  become slightly more unequal. 
B)  not dramatically changed. 
C)  become more equal. 
D)  shifted toward the poorer 20 percent away from the richer 20 percent. 
A)  become slightly more unequal. 
B)  not dramatically changed. 
C)  become more equal. 
D)  shifted toward the poorer 20 percent away from the richer 20 percent.

Question 20

All of the following would show a more equal distribution than the distribution of money income EXCEPT

Accepted Answer

A)  total income. 
B)  after-tax income. 
C)  wealth. 
D)  lifetime earnings. 
A)  total income. 
B)  after-tax income. 
C)  wealth. 
D)  lifetime earnings.

Exam 30: Income, Poverty, and Health Care

Among the reasons that health care expenditures have grown so rapidly in the United States over the last two decades are all of the following EXCEPT

An example of third-party financing of health care is

"It is difficult to compare over time health care expenditures, costs, and output." Do you agree or disagree? Why?

What are the major criticisms of the Lorenz curve?

Age is a determinant of income because

The 45° line on a Lorenz curve represents

Rising healthcare costs are attributable to

According to the text, government spending accounts for about ________ percent of all U.S. health care expenditures.

Which factor listed below does NOT help account for the age-earning cycle?

Once the national health care program goes into effect and more people will pay fewer of their health care expenses out of their own pockets than they did previously, we can expect

The federal government began officially measuring poverty in the

The age-earning cycle shows declining income as a person approaches retirement age because

Economic discrimination exists when

Which of the distributive standards does NOT involve a value judgment?

How does the distribution of wealth differ from the distribution of income in the United States?

Why doesn't the age-earning cycle continuously increase until retirement age?

-Refer to the above figure. Which of the above panels represents complete income equality?

As a result of moral hazard,

Since 1929, the distribution of money income in the United States has

All of the following would show a more equal distribution than the distribution of money income EXCEPT

The Nature of Economics

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