Question 1

A majority of people in the United States do not have private health insurance.

Accepted Answer

A) True 
 B)False

Question 2

In the United States in 2009,the percentage of people without some form of private health insurance was about

Accepted Answer

A) 17%. 
B) 29%. 
C) 46%. 
D) 83%. 
A) 17%. 
B) 29%. 
C) 46%. 
D) 83%.

Question 3

Between 1981 and 2009,deaths from kidney disease increased largely due to the effects of

Accepted Answer

A) increasing obesity. 
B) increasing alcohol consumption. 
C) increased smoking. 
D) increased pollution. 
A) increasing obesity. 
B) increasing alcohol consumption. 
C) increased smoking. 
D) increased pollution.

Question 4

Under the Small Business Health Options Program (SHOP)provision of the health care plan,a small firm's employees would be

Accepted Answer

A) pooled with the employees of a major corporation. 
B) pooled with the employees of other small firms. 
C) pooled with government employees. 
D) exempt from being required to carry health insurance. 
A) pooled with the employees of a major corporation. 
B) pooled with the employees of other small firms. 
C) pooled with government employees. 
D) exempt from being required to carry health insurance.

Question 5

The Congressional Budget Office estimates that ________ account(s)for less than 1 percent of health care costs in the United States.

Accepted Answer

A) the aging population 
B) uninsured patients receiving treatment in hospital emergency rooms that could have been provided less expensively at doctor's offices 
C) the payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance 
D) advances in medical technology 
A) the aging population 
B) uninsured patients receiving treatment in hospital emergency rooms that could have been provided less expensively at doctor's offices 
C) the payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance 
D) advances in medical technology

Question 6

The individual mandate provision of the PPACA requires

Accepted Answer

A) every U.S.resident to have health insurance. 
B) every U.S.company to provide health insurance to its employees. 
C) every employed person to pay for his or her own health insurance. 
D) every private insurance company to provide free health care to its current policy holders. 
A) every U.S.resident to have health insurance. 
B) every U.S.company to provide health insurance to its employees. 
C) every employed person to pay for his or her own health insurance. 
D) every private insurance company to provide free health care to its current policy holders.

Question 7

The health care system in ________ is referred to as socialized medicine,under which the government owns most of the hospitals and employs most of the doctors.

Accepted Answer

A) Canada 
B) Japan 
C) the United Kingdom 
D) the United States 
A) Canada 
B) Japan 
C) the United Kingdom 
D) the United States

Question 8

Most doctors are employed by the government and most hospitals are owned by the government in

Accepted Answer

A) Canada. 
B) Japan. 
C) the United Kingdom. 
D) the United States. 
A) Canada. 
B) Japan. 
C) the United Kingdom. 
D) the United States.

Question 9

The difference between adverse selection and moral hazard is that

Accepted Answer

A) moral hazard happens at the time parties enter into a transaction; adverse selection occurs after the transaction takes place. 
B) adverse selection happens at the time parties enter into a transaction; moral hazard occurs after the transaction takes place. 
C) moral hazard is the motive that is behind one party entering into a transaction with another party.Adverse selection refers to the other party being harmed by the transaction. 
D) moral hazard refers to the likelihood that a transaction will lead one party to be better off at the expense of the other party to the transaction.Adverse selection refers to the consequences of the transaction after it has occurred. 
A) moral hazard happens at the time parties enter into a transaction; adverse selection occurs after the transaction takes place. 
B) adverse selection happens at the time parties enter into a transaction; moral hazard occurs after the transaction takes place. 
C) moral hazard is the motive that is behind one party entering into a transaction with another party.Adverse selection refers to the other party being harmed by the transaction. 
D) moral hazard refers to the likelihood that a transaction will lead one party to be better off at the expense of the other party to the transaction.Adverse selection refers to the consequences of the transaction after it has occurred.

Question 10

Which of the following is not part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (PPACA)?

Accepted Answer

A) Individuals with pre-existing medical conditions will be able to acquire health insurance. 
B) All policies must provide coverage for dependant children up to age 26. 
C) Lifetime dollar maximums on coverage will be prohibited. 
D) Limits on the size of deductibles and on waiting periods before coverage takes effect will be eliminated. 
A) Individuals with pre-existing medical conditions will be able to acquire health insurance. 
B) All policies must provide coverage for dependant children up to age 26. 
C) Lifetime dollar maximums on coverage will be prohibited. 
D) Limits on the size of deductibles and on waiting periods before coverage takes effect will be eliminated.

Question 11

Which of the following is not part of the "state health exchanges" provision of the Patient Protection and Affordable Care Act (PPACA)?

Accepted Answer

A) Each state is required to establish an Affordable Insurance Exchange by 2014. 
B) Small businesses with fewer than 50 employees will be exempt from being required to participate in the program. 
C) Low-income individuals will be eligible for tax credits to offset the costs of buying health insurance. 
D) Health insurance policies that meet certain specified requirements will be offered by state-run agencies or by non-profit firms. 
A) Each state is required to establish an Affordable Insurance Exchange by 2014. 
B) Small businesses with fewer than 50 employees will be exempt from being required to participate in the program. 
C) Low-income individuals will be eligible for tax credits to offset the costs of buying health insurance. 
D) Health insurance policies that meet certain specified requirements will be offered by state-run agencies or by non-profit firms.

Question 12

What is asymmetric information?

Accepted Answer

Asymmetric information occurs

Question 13

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

Accepted Answer

A) enacting 
B) doubling 
C) cutting in half 
D) repealing 
A) enacting 
B) doubling 
C) cutting in half 
D) repealing

Question 14

Of the following high-income countries,which has the highest mortality ratio for cancer?

Accepted Answer

A) Canada 
B) Japan 
C) the United Kingdom 
D) the United States 
A) Canada 
B) Japan 
C) the United Kingdom 
D) the United States

Question 15

In the United States,out-of-pocket spending on health care per person

Accepted Answer

A) has been rising since 1965. 
B) has been falling since 1965. 
C) has remained fairly steady since 1965. 
D) fell from 1965 through 1995,then began to rise from 1995 to the present. 
A) has been rising since 1965. 
B) has been falling since 1965. 
C) has remained fairly steady since 1965. 
D) fell from 1965 through 1995,then began to rise from 1995 to the present.

Question 16

Growth in labor productivity in the economy as a whole has been ________ labor productivity in health care.

Accepted Answer

A) approximately equal to 
B) slightly faster than 
C) almost twice as slow as 
D) more than twice as fast as 
A) approximately equal to 
B) slightly faster than 
C) almost twice as slow as 
D) more than twice as fast as

Question 17

Pricing insurance policies is made difficult because buyers have more information than sellers.This difficulty is an example of

Accepted Answer

A) moral hazard. 
B) adverse selection. 
C) asymmetric information. 
D) the free rider problem. 
A) moral hazard. 
B) adverse selection. 
C) asymmetric information. 
D) the free rider problem.

Question 18

In the United States,consumers usually pay less than the true cost of medical treatment because of ________.

Accepted Answer

A) adverse selection 
B) rising insurance premiums 
C) third-party payers 
D) rising insurance deductibles 
A) adverse selection 
B) rising insurance premiums 
C) third-party payers 
D) rising insurance deductibles

Question 19

Because of asymmetric information,most used cars that are offered for sale will be sold for prices that are greater than their true value.Because of this fact,the used car market falls victim to

Accepted Answer

A) the free rider problem. 
B) deadweight loss and economic inefficiency. 
C) a surplus of used cars. 
D) adverse selection. 
A) the free rider problem. 
B) deadweight loss and economic inefficiency. 
C) a surplus of used cars. 
D) adverse selection.

Question 20

Those who favor changes in the market for health care that would make it more like the markets for other goods and services favor what are generally known as market-based reforms.

Accepted Answer

A) True 
 B)False

A majority of people in the United States do not have private health insurance.

In the United States in 2009,the percentage of people without some form of private health insurance was about

Between 1981 and 2009,deaths from kidney disease increased largely due to the effects of

Under the Small Business Health Options Program (SHOP)provision of the health care plan,a small firm's employees would be

The Congressional Budget Office estimates that ________ account(s)for less than 1 percent of health care costs in the United States.

The individual mandate provision of the PPACA requires

The health care system in ________ is referred to as socialized medicine,under which the government owns most of the hospitals and employs most of the doctors.

Most doctors are employed by the government and most hospitals are owned by the government in

The difference between adverse selection and moral hazard is that

Which of the following is not part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (PPACA)?

Which of the following is not part of the "state health exchanges" provision of the Patient Protection and Affordable Care Act (PPACA)?

What is asymmetric information?

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

Of the following high-income countries,which has the highest mortality ratio for cancer?

In the United States,out-of-pocket spending on health care per person

Growth in labor productivity in the economy as a whole has been ________ labor productivity in health care.

Pricing insurance policies is made difficult because buyers have more information than sellers.This difficulty is an example of

In the United States,consumers usually pay less than the true cost of medical treatment because of ________.

Because of asymmetric information,most used cars that are offered for sale will be sold for prices that are greater than their true value.Because of this fact,the used car market falls victim to

Those who favor changes in the market for health care that would make it more like the markets for other goods and services favor what are generally known as market-based reforms.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, taxes, and the Distribution of Income

Filters

Exam 7: The Economics of Health Care

A majority of people in the United States do not have private health insurance.

In the United States in 2009,the percentage of people without some form of private health insurance was about

Between 1981 and 2009,deaths from kidney disease increased largely due to the effects of

Under the Small Business Health Options Program (SHOP)provision of the health care plan,a small firm's employees would be

The Congressional Budget Office estimates that ________ account(s)for less than 1 percent of health care costs in the United States.

The individual mandate provision of the PPACA requires

The health care system in ________ is referred to as socialized medicine,under which the government owns most of the hospitals and employs most of the doctors.

Most doctors are employed by the government and most hospitals are owned by the government in

The difference between adverse selection and moral hazard is that

Which of the following is not part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (PPACA)?

Which of the following is not part of the "state health exchanges" provision of the Patient Protection and Affordable Care Act (PPACA)?

What is asymmetric information?

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

Of the following high-income countries,which has the highest mortality ratio for cancer?

In the United States,out-of-pocket spending on health care per person

Growth in labor productivity in the economy as a whole has been ________ labor productivity in health care.

Pricing insurance policies is made difficult because buyers have more information than sellers.This difficulty is an example of

In the United States,consumers usually pay less than the true cost of medical treatment because of ________.

Because of asymmetric information,most used cars that are offered for sale will be sold for prices that are greater than their true value.Because of this fact,the used car market falls victim to

Those who favor changes in the market for health care that would make it more like the markets for other goods and services favor what are generally known as market-based reforms.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, taxes, and the Distribution of Income

Filters