Question 1

The average height of adult males in the United States

Accepted Answer

A)  has steadily increased since the early 1700s. 
B)  has remained very constant since the Civil War. 
C)  rose significantly beginning in 1830. 
D)  declined in the mid-1800s before beginning to rise again around 1890. 
A)  has steadily increased since the early 1700s. 
B)  has remained very constant since the Civil War. 
C)  rose significantly beginning in 1830. 
D)  declined in the mid-1800s before beginning to rise again around 1890.

Question 2

The Congressional Budget Office estimates that the payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance account for ________ of health care costs in the United States.

Accepted Answer

A)  between 20 and 30 percent 
B)  roughly half 
C)  less than 1 percent 
D)  a vast majority 
A)  between 20 and 30 percent 
B)  roughly half 
C)  less than 1 percent 
D)  a vast majority

Question 3

Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase a health insurance policy?

Accepted Answer

A)  the company that issues the health insurance policy 
B)  the individual who is applying for the health insurance policy 
C)  the employer of the individual who is trying to purchase the health insurance policy 
D)  All parties in the health insurance market have access to the same level of information. 
A)  the company that issues the health insurance policy 
B)  the individual who is applying for the health insurance policy 
C)  the employer of the individual who is trying to purchase the health insurance policy 
D)  All parties in the health insurance market have access to the same level of information.

Question 4

Over the past 160 years in the United States,life expectancy

Accepted Answer

A)  has remained fairly constant. 
B)  has slightly declined. 
C)  has more than doubled. 
D)  increased up to the 1950s and then declined for the next 60 years. 
A)  has remained fairly constant. 
B)  has slightly declined. 
C)  has more than doubled. 
D)  increased up to the 1950s and then declined for the next 60 years.

Question 5

In the United States in 2009,the percentage of people with private health insurance was about

Accepted Answer

A)  17%. 
B)  29%. 
C)  54%. 
D)  83%. 
A)  17%. 
B)  29%. 
C)  54%. 
D)  83%.

Question 6

On average,people in the United States spend a greater percentage of their income on health care than do people in most other countries.

Accepted Answer

A) True 
 B)False

Question 7

Under the Small Business Health Options Program (SHOP)provision of the health care plan,a small firm's employees would be pooled with the employees of other small firms.When an insurance plan covers a large number of people,

Accepted Answer

A)  moral hazard is reduced. 
B)  adverse selection problems are reduced. 
C)  asymmetric information issues are eliminated. 
D)  negative externalities become more pronounced. 
A)  moral hazard is reduced. 
B)  adverse selection problems are reduced. 
C)  asymmetric information issues are eliminated. 
D)  negative externalities become more pronounced.

Question 8

Economists who support market-based reforms for health care believe that increased competition among providers of health care would ________ costs and ________ economic efficiency.

Accepted Answer

A)  increase; increase 
B)  increase; decrease 
C)  decrease; increase 
D)  decrease; decrease 
A)  increase; increase 
B)  increase; decrease 
C)  decrease; increase 
D)  decrease; decrease

Question 9

A doctor pursuing his own interests rather than the interests of his patients is an example of the principal-agent problem.

Accepted Answer

A) True 
 B)False

Question 10

A key difficulty facing insurance companies is that people know more about their health than do insurance companies,and that those people who are seriously ill are the most likely to want to obtain health insurance.What is this phenomenon called?

Accepted Answer

A)  moral hazard 
B)  economic irrationality 
C)  asymmetric information 
D)  adverse selection 
A)  moral hazard 
B)  economic irrationality 
C)  asymmetric information 
D)  adverse selection

Question 11

Which of the following factors help to explain the sustained increases in health care spending in the United States,and which do not:
a.the additional paperwork,duplication,and waste generated in the U.S.health care system compared to systems in other countries
b.the increasing costs of malpractice insurance and malpractice lawsuit settlements
c.the number of uninsured patients receiving hospital treatment that could have been preformed at a lower cost in doctors' offices
d.the slow growth in labor productivity in health care compared to that in the economy as a whole
e.the aging population
f.increases in the cost of providing health care

Accepted Answer

Factors "d","e",and "f" do help explain

Question 12

The aging of the U.S.population has tended to ________ spending on health care,and the development of new drugs and medical equipment has tended to ________ spending on health care.

Accepted Answer

A)  increase; increase 
B)  increase; decrease 
C)  decrease; increase 
D)  decrease; decrease 
A)  increase; increase 
B)  increase; decrease 
C)  decrease; increase 
D)  decrease; decrease

Question 13

Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

Accepted Answer

A)  nationalize health care so that all health services are government funded and operated 
B)  give every citizen a fixed amount of money that can only be spent on health care services 
C)  reimburse consumers for preventive health care expenditures so as to avoid costly emergency medical treatments in the future 
D)  standardize the tax treatment of employer-based health insurance benefits and private spending on health care 
A)  nationalize health care so that all health services are government funded and operated 
B)  give every citizen a fixed amount of money that can only be spent on health care services 
C)  reimburse consumers for preventive health care expenditures so as to avoid costly emergency medical treatments in the future 
D)  standardize the tax treatment of employer-based health insurance benefits and private spending on health care

Question 14

Under the Patient Protection and Affordable Care Act (PPACA),residents who do not have health insurance will not be allowed to seek employment.

Accepted Answer

A) True 
 B)False

Question 15

In the United States in 2009,over 90 percent of people without health insurance were below the age of 34.

Accepted Answer

A) True 
 B)False

Question 16

Most employees ________ pay taxes on the value of health insurance provided by employers,and most people ________ get a tax break when buying individual health insurance policies.

Accepted Answer

A)  do; do 
B)  do; do not 
C)  do not; do 
D)  do not; do not 
A)  do; do 
B)  do; do not 
C)  do not; do 
D)  do not; do not

Question 17

The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to

Accepted Answer

A)  the aging population. 
B)  increases in the cost of providing health care. 
C)  increases in immigration. 
D)  declining income levels. 
A)  the aging population. 
B)  increases in the cost of providing health care. 
C)  increases in immigration. 
D)  declining income levels.

Exam 7: The Economics of Health Care

The average height of adult males in the United States

The Congressional Budget Office estimates that the payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance account for ________ of health care costs in the United States.

Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase a health insurance policy?

Over the past 160 years in the United States,life expectancy

In the United States in 2009,the percentage of people with private health insurance was about

On average,people in the United States spend a greater percentage of their income on health care than do people in most other countries.

Under the Small Business Health Options Program (SHOP)provision of the health care plan,a small firm's employees would be pooled with the employees of other small firms.When an insurance plan covers a large number of people,

Economists who support market-based reforms for health care believe that increased competition among providers of health care would ________ costs and ________ economic efficiency.

A doctor pursuing his own interests rather than the interests of his patients is an example of the principal-agent problem.

A key difficulty facing insurance companies is that people know more about their health than do insurance companies,and that those people who are seriously ill are the most likely to want to obtain health insurance.What is this phenomenon called?

The aging of the U.S.population has tended to ________ spending on health care,and the development of new drugs and medical equipment has tended to ________ spending on health care.

Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

Under the Patient Protection and Affordable Care Act (PPACA),residents who do not have health insurance will not be allowed to seek employment.

In the United States in 2009,over 90 percent of people without health insurance were below the age of 34.

Most employees ________ pay taxes on the value of health insurance provided by employers,and most people ________ get a tax break when buying individual health insurance policies.

The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to

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

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Economists who support market-based reforms for health care believe that increased competition among providers of health care would costs and economic efficiency.

The aging of the U.S.population has tended to spending on health care,and the development of new drugs and medical equipment has tended to spending on health care.

Most employees pay taxes on the value of health insurance provided by employers,and most people get a tax break when buying individual health insurance policies.