Question 1

The Medicare program affects persons aged 65 and older,regardless of their income level.

Accepted Answer

A) True 
 B)False

Question 2

The original design of the Social Security system called for a pay-as-you-go financing schemE.

Accepted Answer

A) True 
 B)False

Question 3

The purpose of a prearranged payment and delivery system,such as a managed care plan,is to take away any incentive for the provider to supply unnecessary carE.

Accepted Answer

A) True 
 B)False

Question 4

The Following Questions Refer to the graph below.  
-The results of the wealth substitution effect are illustrated on the graph as a movement from point

Accepted Answer

A) E to F 
B) A to C 
C) E to G 
D) F to E 
E) None of the above 
A) E to F 
B) A to C 
C) E to G 
D) F to E 
E) None of the above

Question 5

If I start saving more during my working life because I anticipate retiring earlier thanks to Social Security,I am exhibiting which of the following effects?

Accepted Answer

A) Retirement 
B) Bequest 
C) Wealth substitution 
D) Opportunity cost 
E) None of the above 
A) Retirement 
B) Bequest 
C) Wealth substitution 
D) Opportunity cost 
E) None of the above

Question 6

Workers and their employers share the burden of Social Security taxes.

Accepted Answer

A) True 
 B)False

Question 7

Currently,about 20 million Americans receive Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 8

The Social Security Trust Fund currently has a negative balancE.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is FALSE?

Accepted Answer

A) 20% of elderly households receive Social Security as their only source of income 
B) Approximately 90% of elderly households receive Social Security benefits 
C) Just under 30% of elderly households receive private pension benefits 
D) For nearly two thirds of elderly households,Social Security represents more than 50% of total income 
E) None of the abovE.All are true 
A) 20% of elderly households receive Social Security as their only source of income 
B) Approximately 90% of elderly households receive Social Security benefits 
C) Just under 30% of elderly households receive private pension benefits 
D) For nearly two thirds of elderly households,Social Security represents more than 50% of total income 
E) None of the abovE.All are true

Question 10

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example,$5,000 for an appendectomy),the company is using which of the following?

Accepted Answer

A) A fee-for-service system 
B) A managed care system 
C) A co-insurance system 
D) A prospective payment system 
E) A social insurance system 
A) A fee-for-service system 
B) A managed care system 
C) A co-insurance system 
D) A prospective payment system 
E) A social insurance system

Question 11

The Following Questions Refer to the graph below.  
-If a third party guarantees a maximum patient price of $25,what quantity of office visits will patients demand?

Accepted Answer

A) 0 
B) 30 
C) 50 
D) 70 
E) More than 70 
A) 0 
B) 30 
C) 50 
D) 70 
E) More than 70

Question 12

Projections indicate that the Medicare HI program will be depleted of funds by 2025.

Accepted Answer

A) True 
 B)False

Question 13

The Following Questions Refer to the graph below.  
-A movement from point E to point F as a result of Social Security would result in which of the following costs to society? A long-run movement to

Accepted Answer

A) PPC CD rather than GH 
B) PPC GH rather than CD 
C) Point B rather than point A 
D) Point A rather than point B 
E) IF to CF 
A) PPC CD rather than GH 
B) PPC GH rather than CD 
C) Point B rather than point A 
D) Point A rather than point B 
E) IF to CF

Question 14

If people choose to work more hours because the Social Security tax reduces their real wage,their behavior is dominated by the

Accepted Answer

A) Substitution effect 
B) Bequest effect 
C) Income effect 
D) Wealth effect 
E) Real wage effect 
A) Substitution effect 
B) Bequest effect 
C) Income effect 
D) Wealth effect 
E) Real wage effect

Question 15

Why do some people favor investing the Social Security Trust Fund in the stock market?

Accepted Answer

A) Because for most beneficiaries the historic return on their Social Security taxes has been less than what would have been earned if those dollars were invested in the stock market 
B) Because investment in the stock market will guarantee higher rates of return over the long run for all retirees 
C) Because investments in the stock market carry very little risk and offer the potential for excessive short-run gains with little or no potential for loss 
D) Because the stock market offers the safest form of investment 
E) All of the above 
A) Because for most beneficiaries the historic return on their Social Security taxes has been less than what would have been earned if those dollars were invested in the stock market 
B) Because investment in the stock market will guarantee higher rates of return over the long run for all retirees 
C) Because investments in the stock market carry very little risk and offer the potential for excessive short-run gains with little or no potential for loss 
D) Because the stock market offers the safest form of investment 
E) All of the above

Question 16

Why can't Social Security rely on a strict pay-as-you-go financial structure?

Accepted Answer

A) The current generation of workers is too small to support future retirees 
B) A pay-as-you-go financial structure is inherently unstable 
C) The current generation of retirees will bankrupt the system before the "baby boom" retires 
D) Inflation erodes the value of contributions that must be saved to pay future retirees 
E) None of the above 
A) The current generation of workers is too small to support future retirees 
B) A pay-as-you-go financial structure is inherently unstable 
C) The current generation of retirees will bankrupt the system before the "baby boom" retires 
D) Inflation erodes the value of contributions that must be saved to pay future retirees 
E) None of the above

Question 17

The Social Security Act was signed into law by President Franklin Roosevelt in 1935.

Accepted Answer

A) True 
 B)False

Question 18

Chile and other nations have successfully privatized all or part of their social insurance programs.

Accepted Answer

A) True 
 B)False

Question 19

OASDI is Social Security's medical insurance program.

Accepted Answer

A) True 
 B)False

Question 20

Under most insurance systems,patients are responsible for which of the following payments for health care services?

Accepted Answer

A) Deductible 
B) Co-insurance 
C) Fee-for-service charges 
D) All of the above 
E) None of the above 
A) Deductible 
B) Co-insurance 
C) Fee-for-service charges 
D) All of the above 
E) None of the above

The Medicare program affects persons aged 65 and older,regardless of their income level.

The original design of the Social Security system called for a pay-as-you-go financing schemE.

The purpose of a prearranged payment and delivery system,such as a managed care plan,is to take away any incentive for the provider to supply unnecessary carE.

The Following Questions Refer to the graph below. -The results of the wealth substitution effect are illustrated on the graph as a movement from point

If I start saving more during my working life because I anticipate retiring earlier thanks to Social Security,I am exhibiting which of the following effects?

Workers and their employers share the burden of Social Security taxes.

Currently,about 20 million Americans receive Social Security benefits.

The Social Security Trust Fund currently has a negative balancE.

Which of the following statements is FALSE?

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example,$5,000 for an appendectomy),the company is using which of the following?

The Following Questions Refer to the graph below. -If a third party guarantees a maximum patient price of $25,what quantity of office visits will patients demand?

Projections indicate that the Medicare HI program will be depleted of funds by 2025.

The Following Questions Refer to the graph below. -A movement from point E to point F as a result of Social Security would result in which of the following costs to society? A long-run movement to

If people choose to work more hours because the Social Security tax reduces their real wage,their behavior is dominated by the

Why do some people favor investing the Social Security Trust Fund in the stock market?

Why can't Social Security rely on a strict pay-as-you-go financial structure?

The Social Security Act was signed into law by President Franklin Roosevelt in 1935.

Chile and other nations have successfully privatized all or part of their social insurance programs.

OASDI is Social Security's medical insurance program.

Under most insurance systems,patients are responsible for which of the following payments for health care services?

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Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

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Exam 15: Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

The Medicare program affects persons aged 65 and older,regardless of their income level.

The original design of the Social Security system called for a pay-as-you-go financing schemE.

The purpose of a prearranged payment and delivery system,such as a managed care plan,is to take away any incentive for the provider to supply unnecessary carE.

The Following Questions Refer to the graph below. -The results of the wealth substitution effect are illustrated on the graph as a movement from point

If I start saving more during my working life because I anticipate retiring earlier thanks to Social Security,I am exhibiting which of the following effects?

Workers and their employers share the burden of Social Security taxes.

Currently,about 20 million Americans receive Social Security benefits.

The Social Security Trust Fund currently has a negative balancE.

Which of the following statements is FALSE?

If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example,$5,000 for an appendectomy),the company is using which of the following?

The Following Questions Refer to the graph below. -If a third party guarantees a maximum patient price of $25,what quantity of office visits will patients demand?

Projections indicate that the Medicare HI program will be depleted of funds by 2025.

The Following Questions Refer to the graph below. -A movement from point E to point F as a result of Social Security would result in which of the following costs to society? A long-run movement to

If people choose to work more hours because the Social Security tax reduces their real wage,their behavior is dominated by the

Why do some people favor investing the Social Security Trust Fund in the stock market?

Why can't Social Security rely on a strict pay-as-you-go financial structure?

The Social Security Act was signed into law by President Franklin Roosevelt in 1935.

Chile and other nations have successfully privatized all or part of their social insurance programs.

OASDI is Social Security's medical insurance program.

Under most insurance systems,patients are responsible for which of the following payments for health care services?

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

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