Question 1

Since 1960, health care costs in the United States have risen absolutely but remained constant as a percentage of gross domestic product.

Accepted Answer

A) True 
 B)False

Question 2

Rising health care costs have contributed to slower growth in real wages of workers.

Accepted Answer

A) True 
 B)False

Question 3

It is generally agreed that in the long run the cost of private health insurance provided by employers is

Accepted Answer

A)  at the expense of business profits. 
B)  at the expense of real wages. 
C)  paid by taxpayers through government. 
D)  included as taxable income for income tax purposes. 
A)  at the expense of business profits. 
B)  at the expense of real wages. 
C)  paid by taxpayers through government. 
D)  included as taxable income for income tax purposes.

Question 4

In 2015, some 30 million Americans did not have health insurance.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following was not an objection raised by opponents of the Patient Protection and Affordable Care Act?

Accepted Answer

A)  The revenue generated by the new taxes in the PPACA would be insufficient to cover costs of the program. 
B)  The PPACA moves the United States closer to creating a national health insurance system with nonprice rationing of health care. 
C)  The subsidies would lead to higher prices and increased consumption of health care. 
D)  The percentage of health care spending coming directly out of consumers' pockets would increase. 
A)  The revenue generated by the new taxes in the PPACA would be insufficient to cover costs of the program. 
B)  The PPACA moves the United States closer to creating a national health insurance system with nonprice rationing of health care. 
C)  The subsidies would lead to higher prices and increased consumption of health care. 
D)  The percentage of health care spending coming directly out of consumers' pockets would increase.

Question 6

Approximately how many workers are employed in the U.S. health care industry?

Accepted Answer

A)  650,000 
B)  902,000 
C)  17 million 
D)  12 million 
A)  650,000 
B)  902,000 
C)  17 million 
D)  12 million

Question 7

Some low-income workers are not covered by Medicaid because of the income that they are earning from their jobs.

Accepted Answer

A) True 
 B)False

Question 8

In 2007, approximately what percentage of people in the United States with private health insurance received it as an employer-provided benefit?

Accepted Answer

A)  35 
B)  50 
C)  88 
D)  95 
A)  35 
B)  50 
C)  88 
D)  95

Question 9

Which of the following is not one of the ways the PPACA attempts to cover the poor?

Accepted Answer

A)  requiring larger employers to provide insurance for all of their full-time employees 
B)  providing health care directly to the poor through government-run clinics and hospitals 
C)  subsidizing the purchase of health insurance for those who buy to comply with the personal mandate 
D)  expanding Medicaid to cover anyone with an income less than 133 percent of the poverty level 
A)  requiring larger employers to provide insurance for all of their full-time employees 
B)  providing health care directly to the poor through government-run clinics and hospitals 
C)  subsidizing the purchase of health insurance for those who buy to comply with the personal mandate 
D)  expanding Medicaid to cover anyone with an income less than 133 percent of the poverty level

Question 10

An increase in the demand for health care would most likely result from

Accepted Answer

A)  healthier lifestyles. 
B)  an aging population. 
C)  less health insurance coverage. 
D)  increased productivity in health care. 
A)  healthier lifestyles. 
B)  an aging population. 
C)  less health insurance coverage. 
D)  increased productivity in health care.

Question 11

Other things equal, increased emphasis on providing the best possible medical care for all, regardless of income, will

Accepted Answer

A)  increase the demand for health care. 
B)  increase the supply of health care. 
C)  have no effect. 
D)  decrease the demand for health care. 
A)  increase the demand for health care. 
B)  increase the supply of health care. 
C)  have no effect. 
D)  decrease the demand for health care.

Question 12

What was the primary goal of the proponents of the Patient Protection and Affordable Care Act?

Accepted Answer

A)  improve the quality of care by reducing medical malpractice 
B)  reduce health care costs in the United States by 50 percent 
C)  make all U.S. health care publically (government) provided 
D)  extend health insurance coverage to all Americans 
A)  improve the quality of care by reducing medical malpractice 
B)  reduce health care costs in the United States by 50 percent 
C)  make all U.S. health care publically (government) provided 
D)  extend health insurance coverage to all Americans

Question 13

Health insurance induces consumers to adopt less prevention and overconsumption of health care.

Accepted Answer

A) True 
 B)False

Question 14

There is a consensus among economists that the amount of resources allocated to the health care industry is optimal.

Accepted Answer

A) True 
 B)False

Question 15

The price elasticity of demand for health care is 0.2. This means that a 5 percent increase in price will induce a

Accepted Answer

A)  10 percent decrease in quantity demanded. 
B)  5 percent decrease in quantity demanded. 
C)  2.5 percent decrease in quantity demanded. 
D)  1 percent decrease in quantity demanded. 
A)  10 percent decrease in quantity demanded. 
B)  5 percent decrease in quantity demanded. 
C)  2.5 percent decrease in quantity demanded. 
D)  1 percent decrease in quantity demanded.

Question 16

In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about

Accepted Answer

A)  +3. 
B)  +6. 
C)  −2. 
D)  +1. 
A)  +3. 
B)  +6. 
C)  −2. 
D)  +1.

Question 17

Studies in industrially advanced nations indicate that a 3 percent increase in incomes will generate a

Accepted Answer

A)  1 percent increase in the amount of health care demanded. 
B)  1.5 percent increase in the amount of health care demanded. 
C)  3 percent increase in the amount of health care demanded. 
D)  6 percent increase in the amount of health care demanded. 
A)  1 percent increase in the amount of health care demanded. 
B)  1.5 percent increase in the amount of health care demanded. 
C)  3 percent increase in the amount of health care demanded. 
D)  6 percent increase in the amount of health care demanded.

Question 18

Roughly what portion of U.S. total health spending is paid for by private and public insurance?

Accepted Answer

A)  one-tenth 
B)  one-fourth 
C)  four-fifths 
D)  one-half 
A)  one-tenth 
B)  one-fourth 
C)  four-fifths 
D)  one-half

Question 19

Compared to younger people, those who are 65 and older tend to consume roughly

Accepted Answer

A)  twice as much health care. 
B)  about the same amount of health care. 
C)  three-and-a-half times as much health care. 
D)  10 percent less health care. 
A)  twice as much health care. 
B)  about the same amount of health care. 
C)  three-and-a-half times as much health care. 
D)  10 percent less health care.

Question 20

(Consider This) In 2014, the Medicare and Medicaid programs reimbursed approximately what percentage of hospitals' total cost of providing care to the patients covered by those programs?

Accepted Answer

A)  80 percent 
B)  90 percent 
C)  100 percent 
D)  105 percent 
A)  80 percent 
B)  90 percent 
C)  100 percent 
D)  105 percent

Exam 24: Health Care

Since 1960, health care costs in the United States have risen absolutely but remained constant as a percentage of gross domestic product.

Rising health care costs have contributed to slower growth in real wages of workers.

It is generally agreed that in the long run the cost of private health insurance provided by employers is

In 2015, some 30 million Americans did not have health insurance.

Which of the following was not an objection raised by opponents of the Patient Protection and Affordable Care Act?

Approximately how many workers are employed in the U.S. health care industry?

Some low-income workers are not covered by Medicaid because of the income that they are earning from their jobs.

In 2007, approximately what percentage of people in the United States with private health insurance received it as an employer-provided benefit?

Which of the following is not one of the ways the PPACA attempts to cover the poor?

An increase in the demand for health care would most likely result from

Other things equal, increased emphasis on providing the best possible medical care for all, regardless of income, will

What was the primary goal of the proponents of the Patient Protection and Affordable Care Act?

Health insurance induces consumers to adopt less prevention and overconsumption of health care.

There is a consensus among economists that the amount of resources allocated to the health care industry is optimal.

The price elasticity of demand for health care is 0.2. This means that a 5 percent increase in price will induce a

In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about

Studies in industrially advanced nations indicate that a 3 percent increase in incomes will generate a

Roughly what portion of U.S. total health spending is paid for by private and public insurance?

Compared to younger people, those who are 65 and older tend to consume roughly

(Consider This) In 2014, the Medicare and Medicaid programs reimbursed approximately what percentage of hospitals' total cost of providing care to the patients covered by those programs?

Limits, Alternatives, and Choices

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