Question 1

Economists who support market-based reforms for health care believe that increased competition among providers of health care would

Accepted Answer

A) decrease costs but decrease economic efficiency. 
B) decrease costs and increase economic efficiency. 
C) increase costs but increase economic efficiency. 
D) increase costs and decrease economic efficiency. 
A) decrease costs but decrease economic efficiency. 
B) decrease costs and increase economic efficiency. 
C) increase costs but increase economic efficiency. 
D) increase costs and decrease economic efficiency.

Question 2

Adverse selection refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.

Accepted Answer

A) True 
 B)False

Question 3

The health care system in ________ is referred to as a universal health insurance system,under which every resident is required to enroll in either a private or the government-provided health insurance program.

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 4

Adverse selection in the market for health insurance arises because

Accepted Answer

A) many insurance companies care more about profits than they do about providing services for their customers in the event of illness. 
B) the federal government intervenes in insurance markets by controlling prices and reimbursement policies. 
C) insurance companies are not allowed to charge premiums that are high enough to insure against "worst-case" illness. 
D) buyers of insurance know more than insurance companies about the likelihood of an illness for which buyers want insurance. 
A) many insurance companies care more about profits than they do about providing services for their customers in the event of illness. 
B) the federal government intervenes in insurance markets by controlling prices and reimbursement policies. 
C) insurance companies are not allowed to charge premiums that are high enough to insure against "worst-case" illness. 
D) buyers of insurance know more than insurance companies about the likelihood of an illness for which buyers want insurance.

Question 5

Health problems prevent people from working harder,which can lower a country's total income.This indicates that in effect,health problems

Accepted Answer

A) are a primary cause of price decreases. 
B) increase the incentive to work. 
C) shift country's production possibilities frontier inward. 
D) decrease consumer surplus. 
A) are a primary cause of price decreases. 
B) increase the incentive to work. 
C) shift country's production possibilities frontier inward. 
D) decrease consumer surplus.

Question 6

In which of the following countries does health insurance not pay for most preventive care procedures?

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 7

The Pre-Existing Condition Insurance Plan is a federally administered part of the Affordable Care Act,and is designed for people with pre-existing medical conditions to obtain insurance.By offering health insurance to all U.S.citizens with pre-existing medical conditions,the Pre-Existing Condition Insurance Plan

Accepted Answer

A) eliminates asymmetric information for the insurer,but not for the insured. 
B) eliminates asymmetric information for the insured,but not for the insurer. 
C) eliminates asymmetric information for both the insurer and the insured. 
D) reduces,but does not eliminate,,asymmetric information for both the insurer and the insured. 
A) eliminates asymmetric information for the insurer,but not for the insured. 
B) eliminates asymmetric information for the insured,but not for the insurer. 
C) eliminates asymmetric information for both the insurer and the insured. 
D) reduces,but does not eliminate,,asymmetric information for both the insurer and the insured.

Question 8

The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as adverse selection.

Accepted Answer

A) True 
 B)False

Question 9

Under current tax law individuals do not pay taxes on health insurance benefits they receive from their employers.As a result

Accepted Answer

A) the federal government spends more than it receives in tax revenue. 
B) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs. 
C) the quality of health care provided is less than it would be if benefits were taxed. 
D) politicians are encouraged to raise income and payroll taxes. 
A) the federal government spends more than it receives in tax revenue. 
B) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs. 
C) the quality of health care provided is less than it would be if benefits were taxed. 
D) politicians are encouraged to raise income and payroll taxes.

Question 10

Which of the following is an example of adverse selection?

Accepted Answer

A) The odds of a fire rise after a building is insured because the person with fire insurance is likely to pay less attention to fire hazards. 
B) Someone who did not install fire alarms and a sprinkler system in a building he owns buys insurance for the building. 
C) Someone with automobile insurance drives more recklessly than someone without insurance. 
D) People prefer to buy new cars rather than used cars. 
A) The odds of a fire rise after a building is insured because the person with fire insurance is likely to pay less attention to fire hazards. 
B) Someone who did not install fire alarms and a sprinkler system in a building he owns buys insurance for the building. 
C) Someone with automobile insurance drives more recklessly than someone without insurance. 
D) People prefer to buy new cars rather than used cars.

Question 11

Which of the following is not part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (PPACA)?

Accepted Answer

A) Individuals are allowed to opt out of the insurance program if they can prove they have no serious health issues and do so before the act fully takes effect in the year 2012. 
B) By 2018,fines for not having health insurance will be the greater of $895 per person or 2.5 percent of income. 
C) Beginning in 2014,individuals who do not acquire health insurance will be subject to a fine. 
D) With limited exceptions,every resident of the United States will be required to have health insurance that meets certain basic requirements. 
A) Individuals are allowed to opt out of the insurance program if they can prove they have no serious health issues and do so before the act fully takes effect in the year 2012. 
B) By 2018,fines for not having health insurance will be the greater of $895 per person or 2.5 percent of income. 
C) Beginning in 2014,individuals who do not acquire health insurance will be subject to a fine. 
D) With limited exceptions,every resident of the United States will be required to have health insurance that meets certain basic requirements.

Question 12

The Congressional Budget Office estimates that ________ of the increase in federal spending on Medicare and Medicaid over the next 75 years will be due to increases in the cost of providing health care.

Accepted Answer

A) very little 
B) less than half 
C) most 
D) all 
A) very little 
B) less than half 
C) most 
D) all

Question 13

The rising cost of uninsured patients receiving treatment at hospital emergency rooms is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

Accepted Answer

A) True 
 B)False

Question 14

Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

Accepted Answer

A) True 
 B)False

Question 15

Under the Patient Protection and Affordable Care Act (PPACA),every company with more than 200 employees must offer health insurance to its employees and must automatically enroll them in the plan.

Accepted Answer

A) True 
 B)False

Question 16

Under the Patient Protection and Affordable Care Act (PPACA),individuals who do not have health insurance will be subject to a fine.

Accepted Answer

A) True 
 B)False

Question 17

Of the following high-income countries,which has the lowest infant mortality rate?

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 18

Typically,the ________ in a country,the higher the level of spending per person on health care.

Accepted Answer

A) higher the level of income per person 
B) larger the population 
C) higher the level of income taxes 
D) lower the median age of the population 
A) higher the level of income per person 
B) larger the population 
C) higher the level of income taxes 
D) lower the median age of the population

Question 19

Substantial co-payments are typically not required as a part of the health care system in

Accepted Answer

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

Question 20

How might a company that offers to handle all paperwork involved with a health insurance claim for a flat fee face the problem of adverse selection?

Accepted Answer

Adverse selection is the situation in wh

Economists who support market-based reforms for health care believe that increased competition among providers of health care would

Adverse selection refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.

The health care system in ________ is referred to as a universal health insurance system,under which every resident is required to enroll in either a private or the government-provided health insurance program.

Adverse selection in the market for health insurance arises because

Health problems prevent people from working harder,which can lower a country's total income.This indicates that in effect,health problems

In which of the following countries does health insurance not pay for most preventive care procedures?

The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as adverse selection.

Under current tax law individuals do not pay taxes on health insurance benefits they receive from their employers.As a result

Which of the following is an example of adverse selection?

Which of the following is not part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (PPACA)?

The Congressional Budget Office estimates that ________ of the increase in federal spending on Medicare and Medicaid over the next 75 years will be due to increases in the cost of providing health care.

The rising cost of uninsured patients receiving treatment at hospital emergency rooms is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

Under the Patient Protection and Affordable Care Act (PPACA),every company with more than 200 employees must offer health insurance to its employees and must automatically enroll them in the plan.

Under the Patient Protection and Affordable Care Act (PPACA),individuals who do not have health insurance will be subject to a fine.

Of the following high-income countries,which has the lowest infant mortality rate?

Typically,the ________ in a country,the higher the level of spending per person on health care.

Substantial co-payments are typically not required as a part of the health care system in

How might a company that offers to handle all paperwork involved with a health insurance claim for a flat fee face the problem of adverse selection?

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

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Exam 7: The Economics of Health Care

Economists who support market-based reforms for health care believe that increased competition among providers of health care would

Adverse selection refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.

The health care system in ________ is referred to as a universal health insurance system,under which every resident is required to enroll in either a private or the government-provided health insurance program.

Adverse selection in the market for health insurance arises because

Health problems prevent people from working harder,which can lower a country's total income.This indicates that in effect,health problems

In which of the following countries does health insurance not pay for most preventive care procedures?

The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as adverse selection.

Under current tax law individuals do not pay taxes on health insurance benefits they receive from their employers.As a result

Which of the following is an example of adverse selection?

Which of the following is not part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (PPACA)?

The Congressional Budget Office estimates that ________ of the increase in federal spending on Medicare and Medicaid over the next 75 years will be due to increases in the cost of providing health care.

The rising cost of uninsured patients receiving treatment at hospital emergency rooms is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

Under the Patient Protection and Affordable Care Act (PPACA),every company with more than 200 employees must offer health insurance to its employees and must automatically enroll them in the plan.

Under the Patient Protection and Affordable Care Act (PPACA),individuals who do not have health insurance will be subject to a fine.

Of the following high-income countries,which has the lowest infant mortality rate?

Typically,the ________ in a country,the higher the level of spending per person on health care.

Substantial co-payments are typically not required as a part of the health care system in

How might a company that offers to handle all paperwork involved with a health insurance claim for a flat fee face the problem of adverse selection?

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