Question 1

Which of the following is not one of the new taxes imposed under the PPACA?

Accepted Answer

A)  2.9 percent excise tax on medical devices 
B)  10 percent tax on indoor tanning 
C)  3.8 percent tax on "junk food" 
D)  40 percent tax on employers providing insurance to employees in excess of $10,200 per year for individuals or $27,500 per year for families. 
A)  2.9 percent excise tax on medical devices 
B)  10 percent tax on indoor tanning 
C)  3.8 percent tax on "junk food" 
D)  40 percent tax on employers providing insurance to employees in excess of $10,200 per year for individuals or $27,500 per year for families.

Question 2

The employer mandate of the PPACA requires that

Accepted Answer

A)  every firm must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
B)  every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
C)  every firm with fewer than 50 full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
D)  every firm with 500 or more employees must establish their own on-site medical facilities to provide employees with basic medical care. 
A)  every firm must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
B)  every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
C)  every firm with fewer than 50 full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee. 
D)  every firm with 500 or more employees must establish their own on-site medical facilities to provide employees with basic medical care.

Question 3

The demand for health care is highly elastic with respect to both price and income.

Accepted Answer

A) True 
 B)False

Question 4

The health care industry currently absorbs about 17.5 percent of U.S. gross domestic product.

Accepted Answer

A) True 
 B)False

Question 5

The two main types of managed-care organizations are

Accepted Answer

A)  U.S. veterans' hospitals and university health clinics. 
B)  health maintenance organizations (HMOs) and private nursing homes. 
C)  health maintenance organizations (HMOs) and preferred provider organizations (PPOs). 
D)  preferred provider organizations (PPOs) and nonprofit hospitals. 
A)  U.S. veterans' hospitals and university health clinics. 
B)  health maintenance organizations (HMOs) and private nursing homes. 
C)  health maintenance organizations (HMOs) and preferred provider organizations (PPOs). 
D)  preferred provider organizations (PPOs) and nonprofit hospitals.

Question 6

Health care spending was about what percentage of U.S. GDP in 2014?

Accepted Answer

A)  45 percent 
B)  32 percent 
C)  18 percent 
D)  8 percent 
A)  45 percent 
B)  32 percent 
C)  18 percent 
D)  8 percent

Question 7

The fee-for-service arrangement for paying doctors is one way to reduce health care costs.

Accepted Answer

A) True 
 B)False

Question 8

About what percentage of the U.S. population had no health insurance for the entire year in 2015?

Accepted Answer

A)  3 percent 
B)  9 percent 
C)  25 percent 
D)  33 percent 
A)  3 percent 
B)  9 percent 
C)  25 percent 
D)  33 percent

Question 9

The Patient Protection and Affordable Care Act (PPACA) attempts to provide health-insurance coverage to low-income people through the following methods, except

Accepted Answer

A)  establishing a new government insurance system specifically for the poor. 
B)  requiring large employers to cover all their employees, including the poor. 
C)  expanding the Medicaid system to cover those whose incomes are less than 133 percent of the poverty level. 
D)  providing subsidies to purchase health insurance to those who must buy insurance coverage on their own. 
A)  establishing a new government insurance system specifically for the poor. 
B)  requiring large employers to cover all their employees, including the poor. 
C)  expanding the Medicaid system to cover those whose incomes are less than 133 percent of the poverty level. 
D)  providing subsidies to purchase health insurance to those who must buy insurance coverage on their own.

Question 10

The price of medical care in the United States has

Accepted Answer

A)  remained relatively unchanged in recent years. 
B)  risen slower than the overall price level. 
C)  risen at the same pace as the overall price level. 
D)  risen faster than the overall price level. 
A)  remained relatively unchanged in recent years. 
B)  risen slower than the overall price level. 
C)  risen at the same pace as the overall price level. 
D)  risen faster than the overall price level.

Question 11

Which of the following provisions of the PPACA do proponents expect to reduce the growth of health care spending?

Accepted Answer

A)  prohibiting insurers from dropping or denying individuals with preexisting conditions 
B)  allowing individuals to purchase coverage through insurance exchanges 
C)  subsidizing purchases of insurance for those complying with the personal mandate 
D)  expanding access to Medicaid coverage 
A)  prohibiting insurers from dropping or denying individuals with preexisting conditions 
B)  allowing individuals to purchase coverage through insurance exchanges 
C)  subsidizing purchases of insurance for those complying with the personal mandate 
D)  expanding access to Medicaid coverage

Question 12

A decrease in the demand for health care would most likely result from

Accepted Answer

A)  newer and more costly medical technology. 
B)  more use of defensive medicine. 
C)  an aging population. 
D)  healthier lifestyles. 
A)  newer and more costly medical technology. 
B)  more use of defensive medicine. 
C)  an aging population. 
D)  healthier lifestyles.

Question 13

Aside from new taxes, the Patient Protection and Affordable Care Act (PPACA) aims to generate revenue by enforcing a personal mandate that requires all individuals not covered by employer- or government-provided health insurance to purchase insurance.

Accepted Answer

A) True 
 B)False

Question 14

Which factor will tend to increase the demand for health care?

Accepted Answer

A)  an improvement in medical technology 
B)  a reduction in subsidies for Medicare 
C)  an increase in the productivity of physicians 
D)  an increase in the average age of the population 
A)  an improvement in medical technology 
B)  a reduction in subsidies for Medicare 
C)  an increase in the productivity of physicians 
D)  an increase in the average age of the population

Question 15

The "too much of a good thing" situation in health care in the U.S. is a result of the following causes, except

Accepted Answer

A)  the information asymmetry between health care providers and consumers. 
B)  the way health care spending is financed in the U.S. 
C)  the interaction between insurance and technological progress in the health care industry. 
D)  the rising wages of health care workers. 
A)  the information asymmetry between health care providers and consumers. 
B)  the way health care spending is financed in the U.S. 
C)  the interaction between insurance and technological progress in the health care industry. 
D)  the rising wages of health care workers.

Question 16

The availability of health insurance tends to

Accepted Answer

A)  decrease the quantity of health care demanded and cause an underallocation of resources to the health care industry. 
B)  increase the quantity of health care demanded and cause an underallocation of resources to the health care industry. 
C)  increase the quantity of health care demanded and cause an overallocation of resources to the health care industry. 
D)  decrease the quantity of health care demanded and cause an overallocation of resources to the health care industry. 
A)  decrease the quantity of health care demanded and cause an underallocation of resources to the health care industry. 
B)  increase the quantity of health care demanded and cause an underallocation of resources to the health care industry. 
C)  increase the quantity of health care demanded and cause an overallocation of resources to the health care industry. 
D)  decrease the quantity of health care demanded and cause an overallocation of resources to the health care industry.

Question 17

Which of the following factors is not a reason why competitive pricing has not developed in the health care industry?

Accepted Answer

A)  The government bans competitive pricing in health care. 
B)  Consumers rarely shop around for health care providers. 
C)  Insurance covers most consumers' cost of health care. 
D)  Consumers are often wary of low prices in health care. 
A)  The government bans competitive pricing in health care. 
B)  Consumers rarely shop around for health care providers. 
C)  Insurance covers most consumers' cost of health care. 
D)  Consumers are often wary of low prices in health care.

Question 18

In order to help pay for the costs of extending health insurance to previously uninsured people, the PPACA imposes new taxes, including the following, except

Accepted Answer

A)  an increase in the Medicare payroll tax for individuals earning more than $200,000 ($250,000 for married couples) per year. 
B)  an increase in the capital gains tax for individuals earning more than $200,000 ($250,000 for married couples) per year. 
C)  a tax levied on indoor tanning. 
D)  a tax on junk foods and soda. 
A)  an increase in the Medicare payroll tax for individuals earning more than $200,000 ($250,000 for married couples) per year. 
B)  an increase in the capital gains tax for individuals earning more than $200,000 ($250,000 for married couples) per year. 
C)  a tax levied on indoor tanning. 
D)  a tax on junk foods and soda.

Question 19

Which of the following is not a characteristic of health savings accounts (HSAs)?

Accepted Answer

A)  They are available to workers covered by health insurance plans with high deductibles ($1,000 or more) and do not have other first-dollar insurance coverage. 
B)  Contributions to HSAs are tax-deductible. 
C)  Unused funds in HSAs accumulate and remain available for later out-of-pocket medical expenses. 
D)  Only workers can contribute to HSAs; employers cannot. 
A)  They are available to workers covered by health insurance plans with high deductibles ($1,000 or more) and do not have other first-dollar insurance coverage. 
B)  Contributions to HSAs are tax-deductible. 
C)  Unused funds in HSAs accumulate and remain available for later out-of-pocket medical expenses. 
D)  Only workers can contribute to HSAs; employers cannot.

Question 20

Roughly how much of health care spending in the U.S. in 2014 was financed by private and public insurance?

Accepted Answer

A)  20 percent 
B)  40 percent 
C)  60 percent 
D)  80 percent 
A)  20 percent 
B)  40 percent 
C)  60 percent 
D)  80 percent

Exam 24: Health Care

Which of the following is not one of the new taxes imposed under the PPACA?

The employer mandate of the PPACA requires that

The demand for health care is highly elastic with respect to both price and income.

The health care industry currently absorbs about 17.5 percent of U.S. gross domestic product.

The two main types of managed-care organizations are

Health care spending was about what percentage of U.S. GDP in 2014?

The fee-for-service arrangement for paying doctors is one way to reduce health care costs.

About what percentage of the U.S. population had no health insurance for the entire year in 2015?

The Patient Protection and Affordable Care Act (PPACA) attempts to provide health-insurance coverage to low-income people through the following methods, except

The price of medical care in the United States has

Which of the following provisions of the PPACA do proponents expect to reduce the growth of health care spending?

A decrease in the demand for health care would most likely result from

Aside from new taxes, the Patient Protection and Affordable Care Act (PPACA) aims to generate revenue by enforcing a personal mandate that requires all individuals not covered by employer- or government-provided health insurance to purchase insurance.

Which factor will tend to increase the demand for health care?

The "too much of a good thing" situation in health care in the U.S. is a result of the following causes, except

The availability of health insurance tends to

Which of the following factors is not a reason why competitive pricing has not developed in the health care industry?

In order to help pay for the costs of extending health insurance to previously uninsured people, the PPACA imposes new taxes, including the following, except

Which of the following is not a characteristic of health savings accounts (HSAs)?

Roughly how much of health care spending in the U.S. in 2014 was financed by private and public 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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