Question 1

Figure 10.3
-Refer to Figure 10.3,expenditures as a percent of GDP fell dramatically in the 1980s.

Accepted Answer

A) True 
 B)False

Question 2

Medicare requires individuals to take a standard health test first,but Medicaid does not.

Accepted Answer

A) True 
 B)False

Question 3

There are two forms of health care provided by the government: _________ is provided for the poor,and _________ is provided for the elderly.

Accepted Answer

A) HMO;Medicare 
B) PMI;HMO 
C) Medicaid;Medicare 
D) Medicare;Medicaid 
E) SSI;Medicare 
A) HMO;Medicare 
B) PMI;HMO 
C) Medicaid;Medicare 
D) Medicare;Medicaid 
E) SSI;Medicare

Question 4

Suppose that the demand curve Dm for medical services can be characterized by the equation M = 2000 - P,where M is the amount of medical services received per year and P is the price.Suppose further that P0 is constant at 800.
(a)Find the equilibrium quantity of services at P0.
(b)Find the equilibrium quantity of services when there is only a co-payment of 20% required such that the price is 0.2P0.
(c)How much additional expenditures induced by insurance are created?

Accepted Answer

(a)At a price of $800,M = 2,00

Question 5

The __________ level of government accounts for the largest share of health care spending.

Accepted Answer

A) regional 
B) state 
C) municipal 
D) federal 
A) regional 
B) state 
C) municipal 
D) federal

Question 6

Suppose that the quantity demanded of visits to a doctor per year is given by X = 12 - 0.05P,where X is the number of visits and P is the price the patient pays for a visit.
(a)How many visits would the patient make if he or she had to pay the full price of a visit,$100?
(b)How many visits would a patient make if he or she was insured and had to pay only a 15% co-insurance payment per visit?
(c)How many visits would the patient make if medical services were free?

Accepted Answer

(a)At the full price of $100,she would m

Question 7

Due to moral hazard,the goal of providing security is likely to conflict with the goal of efficiency.

Accepted Answer

A) True 
 B)False

Question 8

At any given time,about 95% of the population in the United States lacks health insurance.

Accepted Answer

A) True 
 B)False

Question 9

Part C of Medicare allows eligible individuals to have health care coverage up to $100,000 annually.

Accepted Answer

A) True 
 B)False

Question 10

Private health insurance pays for what percentage of health care expenditures?

Accepted Answer

A) 0 
B) 5 
C) 40 
D) 35 
A) 0 
B) 5 
C) 40 
D) 35

Question 11

Suppose that the demand for medical services can be characterized by the equation P = 100 - Q.Suppose further that the supply of health services can be characterized by the equation P = Q + 50.
(a)What is the equilibrium quantity and price in the market for health services?
(b)In an effort to make health services more affordable,the government restricts the price of health services to be no greater than $65.What will happen to the quantity of health services in the market?

Accepted Answer

(a)Set 50 + Q = 100 - Q to get

Figure 10.3 -Refer to Figure 10.3,expenditures as a percent of GDP fell dramatically in the 1980s.

Medicare requires individuals to take a standard health test first,but Medicaid does not.

There are two forms of health care provided by the government: _ is provided for the poor,and _ is provided for the elderly.

The __________ level of government accounts for the largest share of health care spending.

Due to moral hazard,the goal of providing security is likely to conflict with the goal of efficiency.

At any given time,about 95% of the population in the United States lacks health insurance.

Part C of Medicare allows eligible individuals to have health care coverage up to $100,000 annually.

Private health insurance pays for what percentage of health care expenditures?

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters

Exam 10: Government and the Market for Health Care

Figure 10.3 -Refer to Figure 10.3,expenditures as a percent of GDP fell dramatically in the 1980s.

Medicare requires individuals to take a standard health test first,but Medicaid does not.

There are two forms of health care provided by the government: _________ is provided for the poor,and _________ is provided for the elderly.

The __________ level of government accounts for the largest share of health care spending.

Due to moral hazard,the goal of providing security is likely to conflict with the goal of efficiency.

At any given time,about 95% of the population in the United States lacks health insurance.

Part C of Medicare allows eligible individuals to have health care coverage up to $100,000 annually.

Private health insurance pays for what percentage of health care expenditures?

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters

There are two forms of health care provided by the government: _ is provided for the poor,and _ is provided for the elderly.