Question 1

Prior to health care reform,young people would pay approximately ____ of the premium it would cost an elderly person.

Accepted Answer

A)  1/6 
B)  1/2 
C)  2/3 
D)  4/5 
A)  1/6 
B)  1/2 
C)  2/3 
D)  4/5

Question 2

HMOs seek to contain health care costs by exerting control over patients' treatment options.

Accepted Answer

A) True 
 B)False

Question 3

Health care expenditures in the U.S.made up approximately ____ of the total value of the GDP in 2010.

Accepted Answer

A)  20.1 percent 
B)  17.3 percent 
C)  13.5 percent 
D)  9.8 percent 
A)  20.1 percent 
B)  17.3 percent 
C)  13.5 percent 
D)  9.8 percent

Question 4

In the United States,there are a number of programs that provide goods and services,such as food,medical care,and housing,to the poor.How could income standards be changed,in light of these programs,to better reflect absolute poverty?

Accepted Answer

A)  The income standards should not change because these programs provide goods and services, not money. 
B)  The income standards should be increased, since it costs money to provide these goods and services. 
C)  The income standards should be increased, because these programs will affect the relative measure of poverty. 
D)  The income standards should be decreased, since program recipients require less income to meet a minimum standard of living. 
A)  The income standards should not change because these programs provide goods and services, not money. 
B)  The income standards should be increased, since it costs money to provide these goods and services. 
C)  The income standards should be increased, because these programs will affect the relative measure of poverty. 
D)  The income standards should be decreased, since program recipients require less income to meet a minimum standard of living.

Question 5

The permanent income hypothesis indicates that increased savings will cause an increase in long term income.

Accepted Answer

A) True 
 B)False

Question 6

The fact that Jackie received a higher raise than did Jamie,while processing 12 percent more customers at her bank teller line,is evidence of wage discrimination.

Accepted Answer

A) True 
 B)False

Question 7

Firms may choose to discriminate in order to reduce information costs associated with screening applicants.

Accepted Answer

A) True 
 B)False

Question 8

Assume that the average salary for male professors at a university was $110,000 and the average salary for female professors at the same university was $95,000.Based on this information,can we conclude that this university engages in gender discrimination? Why or why not?

Accepted Answer

No,we cannot conclude if discrimination

Question 9

The official poverty rate for the United States for a family of four is approximately:

Accepted Answer

A)  $12,000. 
B)  $16,000. 
C)  $20,000. 
D)  $24,000. 
A)  $12,000. 
B)  $16,000. 
C)  $20,000. 
D)  $24,000.

Question 10

Because of the owner's prejudice,a firm chooses to discriminate against hiring Asian workers.Compared to an otherwise identical,nondiscriminating firm in the same competitive market,the discriminating firm will:

Accepted Answer

A)  incur higher costs. 
B)  receive lower profits. 
C)  receive higher profits. 
D)  be characterized by both (a) and (b). 
A)  incur higher costs. 
B)  receive lower profits. 
C)  receive higher profits. 
D)  be characterized by both (a) and (b).

Question 11

Police officers earn higher wages in part because of the dangers associated with their profession.

Accepted Answer

A) True 
 B)False

Question 12

If every individual earned the same total income over his or her lifetime,there would still be observed inequality because:

Accepted Answer

A)  people earn more in their youth. 
B)  people earn more in middle age. 
C)  people earn more when they are very old. 
D)  of none of the above. 
A)  people earn more in their youth. 
B)  people earn more in middle age. 
C)  people earn more when they are very old. 
D)  of none of the above.

Question 13

If substantial income mobility is present,then there is considerable movement of individuals up and down the income ladder over time.

Accepted Answer

A) True 
 B)False

Question 14

Since the 1980s,the share of measured income received by the lowest fifth of families has risen.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following best explains why garbage collectors are paid a higher wage than many others with comparable skills?

Accepted Answer

A)  because of the dangers associated with collecting trash 
B)  because garbage collectors work much longer hours on average than do those in other jobs 
C)  because of the unpleasantness associated with trash collection 
D)  because garbage collectors possess skills that are in relatively high demand 
A)  because of the dangers associated with collecting trash 
B)  because garbage collectors work much longer hours on average than do those in other jobs 
C)  because of the unpleasantness associated with trash collection 
D)  because garbage collectors possess skills that are in relatively high demand

Question 16

Health care reform will lead to a(n)____ in the number of new,young health care recipients which will cause the ____ of moral hazard problems associated with health insurance.

Accepted Answer

A)  increase; elimination 
B)  increase; worsening 
C)  decrease; elimination 
D)  decrease; worsening 
A)  increase; elimination 
B)  increase; worsening 
C)  decrease; elimination 
D)  decrease; worsening

Question 17

Which of the following countries has the greatest degree of measured income inequality?

Accepted Answer

A)  Canada 
B)  France 
C)  the United States 
D)  Japan 
A)  Canada 
B)  France 
C)  the United States 
D)  Japan

Question 18

Income inequality is greater within nations than among nations.

Accepted Answer

A) True 
 B)False

Exam 17: Income, Poverty, and Health Care

Prior to health care reform,young people would pay approximately ____ of the premium it would cost an elderly person.

HMOs seek to contain health care costs by exerting control over patients' treatment options.

Health care expenditures in the U.S.made up approximately ____ of the total value of the GDP in 2010.

In the United States,there are a number of programs that provide goods and services,such as food,medical care,and housing,to the poor.How could income standards be changed,in light of these programs,to better reflect absolute poverty?

The permanent income hypothesis indicates that increased savings will cause an increase in long term income.

The fact that Jackie received a higher raise than did Jamie,while processing 12 percent more customers at her bank teller line,is evidence of wage discrimination.

Firms may choose to discriminate in order to reduce information costs associated with screening applicants.

Assume that the average salary for male professors at a university was $110,000 and the average salary for female professors at the same university was $95,000.Based on this information,can we conclude that this university engages in gender discrimination? Why or why not?

The official poverty rate for the United States for a family of four is approximately:

Because of the owner's prejudice,a firm chooses to discriminate against hiring Asian workers.Compared to an otherwise identical,nondiscriminating firm in the same competitive market,the discriminating firm will:

Police officers earn higher wages in part because of the dangers associated with their profession.

If every individual earned the same total income over his or her lifetime,there would still be observed inequality because:

If substantial income mobility is present,then there is considerable movement of individuals up and down the income ladder over time.

Since the 1980s,the share of measured income received by the lowest fifth of families has risen.

Which of the following best explains why garbage collectors are paid a higher wage than many others with comparable skills?

Health care reform will lead to a(n)____ in the number of new,young health care recipients which will cause the ____ of moral hazard problems associated with health insurance.

Which of the following countries has the greatest degree of measured income inequality?

Income inequality is greater within nations than among nations.

The Role and Method of Economics

Economics: Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Markets in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Aggregate Demand and Aggregate Supply

The Aggregate Expenditure Model

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Trade

International Finance

Filters

Health care reform will lead to a(n) in the number of new,young health care recipients which will cause the of moral hazard problems associated with health insurance.