Exam 24: Health Care

With an intent to identify potential cost savings (which unfortunately have not materialized), the HITECH Act of 2009 provides $20 billion of subsidies to encourage hospitals and physicians to

Between 1960 and 2014, U.S. health care spending as a percentage of domestic output

In industrially advanced countries, the price elasticity of demand for health care is about

What is the primary purpose of the insurance exchanges set up by the PPACA?

The provision of health insurance leads to a deadweight loss due to an overallocation of resources to health care.

One of the special features of the health care market is asymmetric information. Which of the following is not characteristic of asymmetric information?

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. One major consequence of doing this is that hospitals and other providers are then

Health care costs have greatly increased in recent years in the United States. This fact alone does not establish an overallocation of resources to health care, because

Some employers have reacted to rising health care costs by hiring more part-time and temporary workers.

Health care costs have tended to rise more rapidly in the United States than in Canada because

Health savings accounts (HSAs), implemented by the 2003 Medicare law,

One of the main differences between PPOs and HMOs is that

Assume that health insurance pays three-fourths of the cost of health care. Under this type of system, there will be allocative

The Patient Protection and Affordable Care Act (PPACA) bans the previous practice of insurance companies to deny coverage based on preexisting conditions.

Which of the following terms best characterizes the demand for health care?

Which person in the following list is least likely to have health care insurance?

After two years of being in effect by early 2016, one apparent implementation problem that the PPACA faced was that

Proponents of the Patient Protection and Affordable Care Act (PPACA) had one major goal, which is

Defensive medicine

Health care spending in the next 10 years is projected to grow at an annual rate of about