Question 1

Which of the following is not a characteristic that makes medical care different from other commodities?

Accepted Answer

A) Demand for medical care is irregular. 
B) Sellers have more information than buyers. 
C) Third-party payers abound. 
D) For-profit providers play a major role in delivering medical care. 
E) The transaction itself if filled with uncertainty. 
A) Demand for medical care is irregular. 
B) Sellers have more information than buyers. 
C) Third-party payers abound. 
D) For-profit providers play a major role in delivering medical care. 
E) The transaction itself if filled with uncertainty. D

Question 2

Economists use the term "marginal" to describe costs and benefits

Accepted Answer

A) that are minimal and hardly worth noting. 
B) that are incremental and thus relevant to decision making. 
C) that are noteworthy but not the most important. 
D) whose importance can be minimized through hard work. 
E) none of the above. 
A) that are minimal and hardly worth noting. 
B) that are incremental and thus relevant to decision making. 
C) that are noteworthy but not the most important. 
D) whose importance can be minimized through hard work. 
E) none of the above. B

Question 3

Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called

Accepted Answer

A) price discrimination. 
B) cost-shifting. 
C) categorical costing. 
D) reprehensible and unethical. 
E) creative accounting. 
A) price discrimination. 
B) cost-shifting. 
C) categorical costing. 
D) reprehensible and unethical. 
E) creative accounting. B

Question 4

The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is

Accepted Answer

A) defined by the dollar cost of the equipment. 
B) the same for every health care provider. 
C) measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine. 
D) defined by the next best use of the money invested in the equipment. 
E) impossible to calculate. 
A) defined by the dollar cost of the equipment. 
B) the same for every health care provider. 
C) measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine. 
D) defined by the next best use of the money invested in the equipment. 
E) impossible to calculate.

Question 5

According to recent public opinion polls, what percentage of Americans are satisfied with the quality of the medical care they receive?

Accepted Answer

A) 15 percent. 
B) 40 percent. 
C) 65 percent. 
D) 75 percent. 
E) 90 percent. 
A) 15 percent. 
B) 40 percent. 
C) 65 percent. 
D) 75 percent. 
E) 90 percent.

Question 6

What phrase best describes medical care spending in the United States in 1998?

Accepted Answer

A) Total spending of more than $2 trillion represents 17 percent of GDP and approximately $8,000 per capita. 
B) Total spending of more than $1 trillion represents 14.8 percent of GDP and almost $6,000 per capita. 
C) Total spending of less than $1 trillion represents less than 13 percent of GDP and almost $3,000 per capita. 
D) Total spending is rising at double-digit rates and spending is soaring to over $5,000 per capita. 
E) Total spending is under control and represents a shrinking percentage of GDP. 
A) Total spending of more than $2 trillion represents 17 percent of GDP and approximately $8,000 per capita. 
B) Total spending of more than $1 trillion represents 14.8 percent of GDP and almost $6,000 per capita. 
C) Total spending of less than $1 trillion represents less than 13 percent of GDP and almost $3,000 per capita. 
D) Total spending is rising at double-digit rates and spending is soaring to over $5,000 per capita. 
E) Total spending is under control and represents a shrinking percentage of GDP.

Question 7

The "invisible hand" using Adam Smith's terminology refers to

Accepted Answer

A) government control of the market. 
B) market forces working through the price mechanism. 
C) the money supply that serves to keep the economy working smoothly. 
D) the role of innovation in maintaining a steady rate of growth. 
E) "behind-the-scenes" policy making to influence how markets allocate scarce resources. 
A) government control of the market. 
B) market forces working through the price mechanism. 
C) the money supply that serves to keep the economy working smoothly. 
D) the role of innovation in maintaining a steady rate of growth. 
E) "behind-the-scenes" policy making to influence how markets allocate scarce resources.

Question 8

According to economic theory what is the optimal percentage of GDP to be spent on medical care?

Accepted Answer

A) 6 percent. 
B) 8 percent. 
C) 10 percent. 
D) 12 percent. 
E) There is no widely-accepted way to determine the optimal percentage. 
A) 6 percent. 
B) 8 percent. 
C) 10 percent. 
D) 12 percent. 
E) There is no widely-accepted way to determine the optimal percentage.

Question 9

Self insurance refers to the practice of setting aside funds to pay for medical care expenses instead of paying premiums to an insurance company.Approximately, _______ of all employees who participate in group insurance plans work for firms that self-insure.

Accepted Answer

A) one-fourth 
B) one-third 
C) one-half 
D) two-thirds 
E) three-fourths 
A) one-fourth 
B) one-third 
C) one-half 
D) two-thirds 
E) three-fourths

Question 10

The 1974 federal legislation that exempted employers from certain state laws governing health insurance was

Accepted Answer

A) COBRA 
B) ERISA 
C) CON 
D) HIPAA 
E) SCHIP 
A) COBRA 
B) ERISA 
C) CON 
D) HIPAA 
E) SCHIP

Which of the following is not a characteristic that makes medical care different from other commodities?

Economists use the term "marginal" to describe costs and benefits

Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called

The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is

According to recent public opinion polls, what percentage of Americans are satisfied with the quality of the medical care they receive?

What phrase best describes medical care spending in the United States in 1998?

The "invisible hand" using Adam Smith's terminology refers to

According to economic theory what is the optimal percentage of GDP to be spent on medical care?

Self insurance refers to the practice of setting aside funds to pay for medical care expenses instead of paying premiums to an insurance company.Approximately, _______ of all employees who participate in group insurance plans work for firms that self-insure.

The 1974 federal legislation that exempted employers from certain state laws governing health insurance was

Using E Conomics to Study Health Care Issues

Analyzing Medical Care Markets

Economic Evaluation in Health Care

The De Mand for Health and Medical Care

The Market for Health Insurance

Managed Care

The Physicians Servic ES Market

The Hospital Services Market

The Market for Pharmaceuticals

Confounding Factors

Policies That Enha Nce Access

Policies to Contain Costs

Medical Care Systems Worldwide

Filters

Exam 1: Usmedical Care: A System in Transition

Which of the following is not a characteristic that makes medical care different from other commodities?

Economists use the term "marginal" to describe costs and benefits

Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called

The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is

According to recent public opinion polls, what percentage of Americans are satisfied with the quality of the medical care they receive?

What phrase best describes medical care spending in the United States in 1998?

The "invisible hand" using Adam Smith's terminology refers to

According to economic theory what is the optimal percentage of GDP to be spent on medical care?

Self insurance refers to the practice of setting aside funds to pay for medical care expenses instead of paying premiums to an insurance company.Approximately, _______ of all employees who participate in group insurance plans work for firms that self-insure.

The 1974 federal legislation that exempted employers from certain state laws governing health insurance was

Using E Conomics to Study Health Care Issues

Analyzing Medical Care Markets

Economic Evaluation in Health Care

The De Mand for Health and Medical Care

The Market for Health Insurance

Managed Care

The Physicians Servic ES Market

The Hospital Services Market

The Market for Pharmaceuticals

Confounding Factors

Policies That Enha Nce Access

Policies to Contain Costs

Medical Care Systems Worldwide

Filters