Question 1

Which of the following is a law passed in the last 15 years relating to health care?

Accepted Answer

A)  Establishment of health maintenance organizations to reduce health care costs. 
B)  Establishment of deductibles and copayments in health insurance policies. 
C)  Establishment of health savings accounts (HSAs)to promote saving for routine medical expenses. 
D)  Establishment of fixed Medicare payment to hospitals based on one of several hundred diagnostic categories. 
A)  Establishment of health maintenance organizations to reduce health care costs. 
B)  Establishment of deductibles and copayments in health insurance policies. 
C)  Establishment of health savings accounts (HSAs)to promote saving for routine medical expenses. 
D)  Establishment of fixed Medicare payment to hospitals based on one of several hundred diagnostic categories.

Question 2

Which of the following statements is correct?

Accepted Answer

A)  Limited access to the health care system is a major cause of rising health care costs. 
B)  Rising health care costs are a major cause of limited access to the health care system. 
C)  Rising health care costs have forced employers to raise real wages above labor productivity. 
D)  The tax subsidy that government provides for health care causes health care to be underconsumed. 
A)  Limited access to the health care system is a major cause of rising health care costs. 
B)  Rising health care costs are a major cause of limited access to the health care system. 
C)  Rising health care costs have forced employers to raise real wages above labor productivity. 
D)  The tax subsidy that government provides for health care causes health care to be underconsumed.

Question 3

For many years,the price of medical care in the United States has:

Accepted Answer

A)  risen at the same rate as the overall price level. 
B)  risen at a faster rate than the overall price level. 
C)  risen,but at a slower rate than the overall price level. 
D)  fallen. 
A)  risen at the same rate as the overall price level. 
B)  risen at a faster rate than the overall price level. 
C)  risen,but at a slower rate than the overall price level. 
D)  fallen.

Question 4

In the past several decades,U.S.health care expenditures have:

Accepted Answer

A)  risen absolutely but declined as a percentage of GDP. 
B)  declined absolutely but risen as a percentage of GDP. 
C)  risen absolutely and as a percentage of GDP. 
D)  declined absolutely and as a percentage of GDP. 
A)  risen absolutely but declined as a percentage of GDP. 
B)  declined absolutely but risen as a percentage of GDP. 
C)  risen absolutely and as a percentage of GDP. 
D)  declined absolutely and as a percentage of GDP.

Question 5

When economists say that health care services are overconsumed,they mean that:

Accepted Answer

A)  rich people buy too much health care and poor people buy too little. 
B)  some resources now used in the health care industry could produce alternative goods and services that society values more highly. 
C)  health care is being purchased in amounts such that marginal benefits exceed marginal costs. 
D)  the price of health care is below equilibrium so that quantity demanded exceeds quantity supplied. 
A)  rich people buy too much health care and poor people buy too little. 
B)  some resources now used in the health care industry could produce alternative goods and services that society values more highly. 
C)  health care is being purchased in amounts such that marginal benefits exceed marginal costs. 
D)  the price of health care is below equilibrium so that quantity demanded exceeds quantity supplied.

Question 6

(Consider This)Which of the following was a major objective of the Health Information Technology for Economic and Clinical Health Act?

Accepted Answer

A)  More accurate records so health care providers could increase billings. 
B)  Equip all households with personal medical devices to send real-time health symptoms to health care providers. 
C)  Identify potential cost savings by detecting excessive procedures and medications. 
D)  All of these. 
A)  More accurate records so health care providers could increase billings. 
B)  Equip all households with personal medical devices to send real-time health symptoms to health care providers. 
C)  Identify potential cost savings by detecting excessive procedures and medications. 
D)  All of these.

Question 7

The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine.

Accepted Answer

A) True 
 B)False

Question 8

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 9

The major objective of Medicaid is to:

Accepted Answer

A)  provide health care services to the aged. 
B)  provide health care services to those receiving public assistance. 
C)  contain rising health care costs. 
D)  make a basic health care package available to all Americans. 
A)  provide health care services to the aged. 
B)  provide health care services to those receiving public assistance. 
C)  contain rising health care costs. 
D)  make a basic health care package available to all Americans.

Question 10

Approximately what percentage of U.S.health care spending is financed by public insurance?

Accepted Answer

A)  17 percent. 
B)  33 percent. 
C)  50 percent. 
D)  83 percent. 
A)  17 percent. 
B)  33 percent. 
C)  50 percent. 
D)  83 percent.

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

Insurance companies use deductibles and copayments to:

Accepted Answer

A)  increase access to health care. 
B)  reduce health care costs by discouraging overuse of the health care system. 
C)  prevent small companies from self-insuring their workers. 
D)  keep government out of the health care insurance industry. 
A)  increase access to health care. 
B)  reduce health care costs by discouraging overuse of the health care system. 
C)  prevent small companies from self-insuring their workers. 
D)  keep government out of the health care insurance industry.

Question 13

(Consider This)The PPACA created incentives for firms to:

Accepted Answer

A)  expand their workforces. 
B)  provide on-site medical care for their workers. 
C)  reduce workers to part-time status. 
D)  fire workers with medical problems. 
A)  expand their workforces. 
B)  provide on-site medical care for their workers. 
C)  reduce workers to part-time status. 
D)  fire workers with medical problems.

Question 14

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 15

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 16

Defensive medicine:

Accepted Answer

A)  solves the moral hazard problem. 
B)  increases the demand and costs for health care. 
C)  solves the principal-agent problem. 
D)  is the same as preventive medicine. 
A)  solves the moral hazard problem. 
B)  increases the demand and costs for health care. 
C)  solves the principal-agent problem. 
D)  is the same as preventive medicine.

Question 17

(Consider This)Which of the following best explains why hospital charges of $25 per aspirin are not unusual?

Accepted Answer

A)  Government payments for Medicare and Medicaid patients do not cover hospitals' fixed costs,so these costs must be distributed to other patients and their private insurance providers. 
B)  Government exercises no cost control for Medicare and Medicaid,so hospitals get away with charging those patients $25 for an aspirin. 
C)  Pharmaceutical companies have monopoly power over hospitals,allowing them to charge high prices for medications. 
D)  Hospitals distribute a medically advanced form of aspirin that costs more to produce. 
A)  Government payments for Medicare and Medicaid patients do not cover hospitals' fixed costs,so these costs must be distributed to other patients and their private insurance providers. 
B)  Government exercises no cost control for Medicare and Medicaid,so hospitals get away with charging those patients $25 for an aspirin. 
C)  Pharmaceutical companies have monopoly power over hospitals,allowing them to charge high prices for medications. 
D)  Hospitals distribute a medically advanced form of aspirin that costs more to produce.

Question 18

Changes in the average age of the U.S.population over the past decade have decreased the demand for health care.

Accepted Answer

A) True 
 B)False

Question 19

In the United States,approximately how many doctors are there per 100,000 of population?

Accepted Answer

A)  162. 
B)  275. 
C)  580. 
D)  5,800. 
A)  162. 
B)  275. 
C)  580. 
D)  5,800.

Question 20

The price elasticity of demand for health care is:

Accepted Answer

A)  perfectly inelastic. 
B)  relatively inelastic. 
C)  relatively elastic. 
D)  perfectly elastic. 
A)  perfectly inelastic. 
B)  relatively inelastic. 
C)  relatively elastic. 
D)  perfectly elastic.

Exam 23: Health Care

Which of the following is a law passed in the last 15 years relating to health care?

Which of the following statements is correct?

For many years,the price of medical care in the United States has:

In the past several decades,U.S.health care expenditures have:

When economists say that health care services are overconsumed,they mean that:

(Consider This)Which of the following was a major objective of the Health Information Technology for Economic and Clinical Health Act?

The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine.

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

The major objective of Medicaid is to:

Approximately what percentage of U.S.health care spending is financed by public insurance?

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

Insurance companies use deductibles and copayments to:

(Consider This)The PPACA created incentives for firms to:

Health care:

The availability of health insurance tends to:

Defensive medicine:

(Consider This)Which of the following best explains why hospital charges of $25 per aspirin are not unusual?

Changes in the average age of the U.S.population over the past decade have decreased the demand for health care.

In the United States,approximately how many doctors are there per 100,000 of population?

The price elasticity of demand for health care is:

Income Inequality Poverty and Discrimination

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

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