Question 1

Access to health care is a highly publicized problem in the U.S. The number of Americans in 2015 who did not have health insurance coverage was approximately

Accepted Answer

A)  12 million. 
B)  30 million. 
C)  85 million. 
D)  121 million. 
A)  12 million. 
B)  30 million. 
C)  85 million. 
D)  121 million.

Question 2

Singapore's health care system includes the following major elements, except

Accepted Answer

A)  government mandates designed to promote competition on price and quality among health care providers. 
B)  high out-of-pocket costs to consumers. 
C)  laws requiring people to save for future health expenditures. 
D)  a national health insurance plan for its citizens provided by the government. 
A)  government mandates designed to promote competition on price and quality among health care providers. 
B)  high out-of-pocket costs to consumers. 
C)  laws requiring people to save for future health expenditures. 
D)  a national health insurance plan for its citizens provided by the government.

Question 3

Economists argue that in treating patients,

Accepted Answer

A)  physicians should use any test or procedures that might help the patient. 
B)  health care should not be rationed by physicians, because it is an entitlement or right. 
C)  both benefits and costs should be taken into account by physicians. 
D)  physicians should use any test or procedure whose marginal benefit is positive. 
A)  physicians should use any test or procedures that might help the patient. 
B)  health care should not be rationed by physicians, because it is an entitlement or right. 
C)  both benefits and costs should be taken into account by physicians. 
D)  physicians should use any test or procedure whose marginal benefit is positive.

Question 4

Sam decides to join the Gigantic State University's rugby team when he learns that his health insurance will pay for any subsequent injury. This illustrates

Accepted Answer

A)  the diagnosis-related-group system. 
B)  a "pay or play" system. 
C)  the moral hazard problem. 
D)  the Coase theorem. 
A)  the diagnosis-related-group system. 
B)  a "pay or play" system. 
C)  the moral hazard problem. 
D)  the Coase theorem.

Question 5

Based on the available elasticity evidence, health care

Accepted Answer

A)  is an inferior good. 
B)  is a normal good. 
C)  is highly elastic with respect to price. 
D)  has a price elasticity of demand of 1. 
A)  is an inferior good. 
B)  is a normal good. 
C)  is highly elastic with respect to price. 
D)  has a price elasticity of demand of 1.

Question 6

The so-called government tax subsidy for health insurance comes in the form of

Accepted Answer

A)  health-insurance benefits to employees that are treated as tax-exempt income. 
B)  employer-provided insurance policies that are part of employees' compensation. 
C)  government subsidies to households in the form of Medicare and Medicaid. 
D)  subsidies provided to firms for offering health insurance coverage to employees. 
A)  health-insurance benefits to employees that are treated as tax-exempt income. 
B)  employer-provided insurance policies that are part of employees' compensation. 
C)  government subsidies to households in the form of Medicare and Medicaid. 
D)  subsidies provided to firms for offering health insurance coverage to employees.

Question 7

Because employer payments for health insurance are not subject to income or payroll taxes, government in effect provides a subsidy to health care.

Accepted Answer

A) True 
 B)False

Question 8

Approximately how many millions of Americans did not have health insurance coverage in 2015?

Accepted Answer

A)  24 
B)  30 
C)  49 
D)  63 
A)  24 
B)  30 
C)  49 
D)  63

Question 9

(Last Word) Singapore encourages competition in its health care market by

Accepted Answer

A)  requiring hospitals to post prices for services and by government publishing hospital performance records. 
B)  avoiding any government involvement in the health care market. 
C)  operating government-run hospitals to compete directly with private hospitals. 
D)  outsourcing all of its health care services to foreign providers. 
A)  requiring hospitals to post prices for services and by government publishing hospital performance records. 
B)  avoiding any government involvement in the health care market. 
C)  operating government-run hospitals to compete directly with private hospitals. 
D)  outsourcing all of its health care services to foreign providers.

Question 10

In recent decades, the cost of health care has

Accepted Answer

A)  risen fast due to both rising prices and increasing quantities of services consumed. 
B)  risen solely because of rising prices of health care goods and services. 
C)  remained somewhat stable due to rising prices but falling quantities of services consumed. 
D)  risen solely because of rising quantities of medical goods and services consumed. 
A)  risen fast due to both rising prices and increasing quantities of services consumed. 
B)  risen solely because of rising prices of health care goods and services. 
C)  remained somewhat stable due to rising prices but falling quantities of services consumed. 
D)  risen solely because of rising quantities of medical goods and services consumed.

Question 11

Most industrialized countries emphasize private health insurance paid by employers, to provide coverage for most workers in each nation.

Accepted Answer

A) True 
 B)False

Question 12

Which person would most likely be eligible to receive Medicaid?

Accepted Answer

A)  a person who receives Medicare benefits 
B)  a person who receives Social Security benefits 
C)  a person who works in a government-operated hospital 
D)  a person who qualifies for the Supplementary Security Income program 
A)  a person who receives Medicare benefits 
B)  a person who receives Social Security benefits 
C)  a person who works in a government-operated hospital 
D)  a person who qualifies for the Supplementary Security Income program

Question 13

Medicare is the nationwide federal health care program available to Social Security beneficiaries and the disabled.

Accepted Answer

A) True 
 B)False

Question 14

About how many people were employed in the U.S. health care industry in 2014?

Accepted Answer

A)  5 million 
B)  12 million 
C)  34 million 
D)  42 million 
A)  5 million 
B)  12 million 
C)  34 million 
D)  42 million

Question 15

Managed-care organizations attempt to control their enrolled members' use of health care as a way of containing costs.

Accepted Answer

A) True 
 B)False

Question 16

Reasons for the rapid rise in demand for health care despite steeply rising prices include the following, except

Accepted Answer

A)  people regarding health care as an entitlement or a right. 
B)  imperfect information among consumers of health care. 
C)  third-party insurance payments shielding consumers from the true cost of health care. 
D)  high income-elasticity of the demand for health care services. 
A)  people regarding health care as an entitlement or a right. 
B)  imperfect information among consumers of health care. 
C)  third-party insurance payments shielding consumers from the true cost of health care. 
D)  high income-elasticity of the demand for health care services.

Question 17

The diagnosis-related group (DRG) system adopted by Medicare since 1983 has had the following effects, except

Accepted Answer

A)  hospitals now receive a fixed payment for treating each patient. 
B)  the average length of a hospital stay has increased. 
C)  more patients are treated on an outpatient basis. 
D)  hospitals now have an incentive to restrict the amount of resources used for patients. 
A)  hospitals now receive a fixed payment for treating each patient. 
B)  the average length of a hospital stay has increased. 
C)  more patients are treated on an outpatient basis. 
D)  hospitals now have an incentive to restrict the amount of resources used for patients.

Question 18

One of the taxes included in the Patient Protection and Affordable Care Act (PPACA) to generate revenue is a tax on junk food.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following constituted the largest share of total health care spending in 2014?

Accepted Answer

A)  physicians 
B)  hospitals 
C)  nursing homes 
D)  prescription drugs 
A)  physicians 
B)  hospitals 
C)  nursing homes 
D)  prescription drugs

Question 20

Employer-provided private health insurance

Accepted Answer

A)  is unique to the United States and not typically found in other countries. 
B)  is the most common form of health care provision in industrialized countries. 
C)  substantially reduces the cost of health care provision relative to national health insurance schemes. 
D)  provides a small percentage of health care spending in the United States. 
A)  is unique to the United States and not typically found in other countries. 
B)  is the most common form of health care provision in industrialized countries. 
C)  substantially reduces the cost of health care provision relative to national health insurance schemes. 
D)  provides a small percentage of health care spending in the United States.

Exam 24: Health Care

Access to health care is a highly publicized problem in the U.S. The number of Americans in 2015 who did not have health insurance coverage was approximately

Singapore's health care system includes the following major elements, except

Economists argue that in treating patients,

Sam decides to join the Gigantic State University's rugby team when he learns that his health insurance will pay for any subsequent injury. This illustrates

Based on the available elasticity evidence, health care

The so-called government tax subsidy for health insurance comes in the form of

Because employer payments for health insurance are not subject to income or payroll taxes, government in effect provides a subsidy to health care.

Approximately how many millions of Americans did not have health insurance coverage in 2015?

(Last Word) Singapore encourages competition in its health care market by

In recent decades, the cost of health care has

Most industrialized countries emphasize private health insurance paid by employers, to provide coverage for most workers in each nation.

Which person would most likely be eligible to receive Medicaid?

Medicare is the nationwide federal health care program available to Social Security beneficiaries and the disabled.

About how many people were employed in the U.S. health care industry in 2014?

Managed-care organizations attempt to control their enrolled members' use of health care as a way of containing costs.

Reasons for the rapid rise in demand for health care despite steeply rising prices include the following, except

The diagnosis-related group (DRG) system adopted by Medicare since 1983 has had the following effects, except

One of the taxes included in the Patient Protection and Affordable Care Act (PPACA) to generate revenue is a tax on junk food.

Which of the following constituted the largest share of total health care spending in 2014?

Employer-provided private health insurance

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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