Question 1

A co-payment is the

Accepted Answer

A) percentage of a covered expense that an individual will have to pay (after the deductible is met.) 
B) percentage of a covered expense that an insurance company will have to pay (after the deductible is met). 
C) amount of covered expense that an individual will have to pay before the insurance company pays anything. 
D) amount of covered expense that an insurance company will have to pay before the individual pays anything. 
A) percentage of a covered expense that an individual will have to pay (after the deductible is met.) 
B) percentage of a covered expense that an insurance company will have to pay (after the deductible is met). 
C) amount of covered expense that an individual will have to pay before the insurance company pays anything. 
D) amount of covered expense that an insurance company will have to pay before the individual pays anything. A

Question 2

Part A of Medicare covers

Accepted Answer

A) prescriptions taken out of the hospital. 
B) only charges incurred in a hospital. 
C) doctor visits outside of a hospital. 
D) all health care needs. 
A) prescriptions taken out of the hospital. 
B) only charges incurred in a hospital. 
C) doctor visits outside of a hospital. 
D) all health care needs. B

Question 3

According to the U.S. Census Bureau, hospitals in the United States are mostly

Accepted Answer

A) private. 
B) public. 
C) faith-based. 
D) for-profit. 
A) private. 
B) public. 
C) faith-based. 
D) for-profit. A

Question 4

If the deductible is $400 and the co-payment is 25%, on a covered expense of $800 the individual will pay _____ and their insurance company will pay ______.

Accepted Answer

A) $500; $500 
B) $500; $300 
C) $300; $500 
D) $500; $100 
A) $500; $500 
B) $500; $300 
C) $300; $500 
D) $500; $100

Question 5

An insurance plan that carries a low annual premium but also a low annual maximum amount that insurance will cover is called a

Accepted Answer

A) mini-med. 
B) an HMO. 
C) a PPO. 
D) a fee for service provider. 
A) mini-med. 
B) an HMO. 
C) a PPO. 
D) a fee for service provider.

Question 6

Publicly provided health insurance for the poor will

Accepted Answer

A) lower the price of health care to the poor. 
B) lower the level of health care consumed by the poor. 
C) increase the total amount of health care consumed. 
D) lower the price of health care to the non-poor and increase the total amount of health care consumed. 
A) lower the price of health care to the poor. 
B) lower the level of health care consumed by the poor. 
C) increase the total amount of health care consumed. 
D) lower the price of health care to the non-poor and increase the total amount of health care consumed.

Question 7

Being risk averse means that you would be willing to pay _____ than the expected outcome in order to guarantee an outcome.

Accepted Answer

A) less 
B) more 
C) no more or less 
D) more or less 
A) less 
B) more 
C) no more or less 
D) more or less

Question 8

In terms of the percentage of health expenditures spent by governments, single payer systems are

Accepted Answer

A) more than 100%. 
B) by definition 100%. 
C) typically between 60% and 90%. 
D) typically under 50%. 
A) more than 100%. 
B) by definition 100%. 
C) typically between 60% and 90%. 
D) typically under 50%.

Question 9

The Children's Health Insurance Program was created in the

Accepted Answer

A) 1940s. 
B) 1960s. 
C) 1980s. 
D) 1990s. 
A) 1940s. 
B) 1960s. 
C) 1980s. 
D) 1990s.

Question 10

Government spending accounts for _________ the private market in health care expenditures.

Accepted Answer

A) much more than 
B) slightly more than 
C) slightly less than 
D) much less than 
A) much more than 
B) slightly more than 
C) slightly less than 
D) much less than

Question 11

If a person has a deductible of $300 and must pay $400 out of a $1,300 health care expense in a year, then their co-payment rate is

Accepted Answer

A) 5%. 
B) 10%. 
C) 20%. 
D) 50%. 
A) 5%. 
B) 10%. 
C) 20%. 
D) 50%.

Question 12

Which of the following was made illegal under the Patient Protection and Affordable Care Act

Accepted Answer

A) co-payment. 
B) deductible. 
C) lifetime maximum. 
D) maximum out-of-pocket. 
A) co-payment. 
B) deductible. 
C) lifetime maximum. 
D) maximum out-of-pocket.

Question 13

Fee-for-service insurance

Accepted Answer

A) is typically more expensive than an HMO covering the same illnesses. 
B) has more meddlesome bureaucrats than an HMO. 
C) does not allow patients to pick their own doctor. 
D) requires you pay for services before they are performed. 
A) is typically more expensive than an HMO covering the same illnesses. 
B) has more meddlesome bureaucrats than an HMO. 
C) does not allow patients to pick their own doctor. 
D) requires you pay for services before they are performed.

Question 14

Nations with single payer systems typically have

Accepted Answer

A) higher tax rates than exist in the U.S. 
B) lower life expectancies than in the U.S. 
C) better access to high-tech medical solutions than in the U.S. 
D) serious inequality in the access to basic care. 
A) higher tax rates than exist in the U.S. 
B) lower life expectancies than in the U.S. 
C) better access to high-tech medical solutions than in the U.S. 
D) serious inequality in the access to basic care.

Question 15

Publicly provided health insurance for the poor will

Accepted Answer

A) raise the price of health care to the non-poor. 
B) raise the level of health care consumed by the non-poor. 
C) increase the total amount of health care consumed. 
D) raise the price of health care to the non-poor and increase the total amount of health care consumed. 
A) raise the price of health care to the non-poor. 
B) raise the level of health care consumed by the non-poor. 
C) increase the total amount of health care consumed. 
D) raise the price of health care to the non-poor and increase the total amount of health care consumed.

Question 16

According to the U.S. Census Bureau, physicians in the United Kingdom are mostly

Accepted Answer

A) private fee for service professionals. 
B) public employees. 
C) private professionals charging government-imposed fees. 
D) locally elected officials. 
A) private fee for service professionals. 
B) public employees. 
C) private professionals charging government-imposed fees. 
D) locally elected officials.

Question 17

Health Care is not like other goods and services because

Accepted Answer

A) if a newly discovered cure costs a lot we say, incorrectly, that its price has risen. 
B) we tend to like to go to the doctor and do it for enjoyment whereas we hate going to the dentist. 
C) people do not have to pay for it. 
D) there is no motive to consume more than is economically efficient. 
A) if a newly discovered cure costs a lot we say, incorrectly, that its price has risen. 
B) we tend to like to go to the doctor and do it for enjoyment whereas we hate going to the dentist. 
C) people do not have to pay for it. 
D) there is no motive to consume more than is economically efficient.

Question 18

Moral Hazard

Accepted Answer

A) is the fact that having insurance increases the demand for the good. 
B) is the fact that people will consume more health care when they pay only a percentage. 
C) does not apply to health insurance. 
D) is the fact that having insurance increases the demand for the good and it does not apply to health insurance. 
A) is the fact that having insurance increases the demand for the good. 
B) is the fact that people will consume more health care when they pay only a percentage. 
C) does not apply to health insurance. 
D) is the fact that having insurance increases the demand for the good and it does not apply to health insurance.

Question 19

Combined, in 2014 Medicare and Medicaid covered

Accepted Answer

A) 6 million people. 
B) 25 million people. 
C) 105 million people. 
D) 143 million people. 
A) 6 million people. 
B) 25 million people. 
C) 105 million people. 
D) 143 million people.

Question 20

Suppose someone knew the probability of incurring a $10,000 medical expense was 5% and the odds of being healthy and incurring no expenses was 95%. If they used that information to compare the expected cost to them ($500)with the $400 premium it would cost to get full coverage and decided not to buy the insurance then economists would say they are

Accepted Answer

A) irrational. 
B) risk loving. 
C) risk averse. 
D) risk neutral. 
A) irrational. 
B) risk loving. 
C) risk averse. 
D) risk neutral.

Exam 24: Health Care

A co-payment is the

Part A of Medicare covers

According to the U.S. Census Bureau, hospitals in the United States are mostly

If the deductible is $400 and the co-payment is 25%, on a covered expense of $800 the individual will pay _____ and their insurance company will pay ______.

An insurance plan that carries a low annual premium but also a low annual maximum amount that insurance will cover is called a

Publicly provided health insurance for the poor will

Being risk averse means that you would be willing to pay _____ than the expected outcome in order to guarantee an outcome.

In terms of the percentage of health expenditures spent by governments, single payer systems are

The Children's Health Insurance Program was created in the

Government spending accounts for _________ the private market in health care expenditures.

If a person has a deductible of $300 and must pay $400 out of a $1,300 health care expense in a year, then their co-payment rate is

Which of the following was made illegal under the Patient Protection and Affordable Care Act

Fee-for-service insurance

Nations with single payer systems typically have

Publicly provided health insurance for the poor will

According to the U.S. Census Bureau, physicians in the United Kingdom are mostly

Health Care is not like other goods and services because

Moral Hazard

Combined, in 2014 Medicare and Medicaid covered

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

Filters

If the deductible is $400 and the co-payment is 25%, on a covered expense of $800 the individual will pay _ and their insurance company will pay __.