Question 1

Changes in the health of the average person are an important indicator of changes in the standard of living.

Accepted Answer

A) True 
 B)False

Question 2

Of the following high-income countries,which has the lowest 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 3

An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy.What is the term used to describe the situation above?

Accepted Answer

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

Question 4

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

Accepted Answer

A)  approximately equal to 
B)  slightly faster than 
C)  almost twice as fast as 
D)  less than half as fast as 
A)  approximately equal to 
B)  slightly faster than 
C)  almost twice as fast as 
D)  less than half as fast as

Question 5

Figure 7-1   Figure 7-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 7-1.At the market equilibrium

Accepted Answer

A)  the marginal benefit is equal to the marginal cost. 
B)  the marginal benefit is greater than the marginal cost. 
C)  the marginal benefit is less than the marginal cost. 
D)  the marginal benefit is zero. 
A)  the marginal benefit is equal to the marginal cost. 
B)  the marginal benefit is greater than the marginal cost. 
C)  the marginal benefit is less than the marginal cost. 
D)  the marginal benefit is zero.

Question 6

In markets with asymmetric information

Accepted Answer

A)  moral hazard causes adverse selection which in turn causes asymmetric information. 
B)  adverse selection causes moral hazard which in turn causes asymmetric information. 
C)  asymmetric information causes moral hazard and then it causes adverse selection. 
D)  asymmetric information causes adverse selection and then it causes moral hazard. 
A)  moral hazard causes adverse selection which in turn causes asymmetric information. 
B)  adverse selection causes moral hazard which in turn causes asymmetric information. 
C)  asymmetric information causes moral hazard and then it causes adverse selection. 
D)  asymmetric information causes adverse selection and then it causes moral hazard.

Question 7

In the United States in 2012,the percentage of firms that employed between 3 and 199 workers and offered health insurance as a fringe benefit to the workers was about

Accepted Answer

A)  29%. 
B)  42%. 
C)  61%. 
D)  98%. 
A)  29%. 
B)  42%. 
C)  61%. 
D)  98%.

Question 8

Between 1981 and 2011,the overall mortality rate in the United States

Accepted Answer

A)  decreased by more than 25 percent. 
B)  slowly but steadily increased. 
C)  remained fairly constant. 
D)  was similar to the average rate in most low-income countries. 
A)  decreased by more than 25 percent. 
B)  slowly but steadily increased. 
C)  remained fairly constant. 
D)  was similar to the average rate in most low-income countries.

Question 9

All of the following are part of the "state health exchanges" provision of the Patient Protection and Affordable Care Act (ACA)except

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, by non-profit firms, or by the federal government. 
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, by non-profit firms, or by the federal government.

Question 10

In the principal-agent relationship,the agent is

Accepted Answer

A)  the owner of a resource that has hired another party to act on his behalf. 
B)  the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party. 
C)  the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. 
D)  the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf. 
A)  the owner of a resource that has hired another party to act on his behalf. 
B)  the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party. 
C)  the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. 
D)  the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.

Question 11

What are the main sources of health insurance in the United States?

Accepted Answer

The percentage of Americans covered by v

Question 12

Figure 7-2   Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 7-2.With insurance and a third-party payer system,the equilibrium quantity of medical services is

Accepted Answer

A)  200. 
B)  500. 
C)  700. 
D)  >700. 
A)  200. 
B)  500. 
C)  700. 
D)  >700.

Question 13

Most doctors and hospitals operate as private businesses in all of the following countries except

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 14

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 15

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 16

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 17

Briefly describe the most important differences between the market for health care and the market for other goods and services.

Accepted Answer

Doctors and hospitals that supply most h

Question 18

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.

Question 19

In the United States in 2012,the percentage of people that directly purchased an individual or family health insurance policy from an insurance company was about

Accepted Answer

A)  2%. 
B)  10%. 
C)  17%. 
D)  26%. 
A)  2%. 
B)  10%. 
C)  17%. 
D)  26%.

Question 20

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

Accepted Answer

A)  an out-of-pocket system 
B)  a single-payer health care system 
C)  a universal health insurance system 
D)  socialized medicine 
A)  an out-of-pocket system 
B)  a single-payer health care system 
C)  a universal health insurance system 
D)  socialized medicine

Changes in the health of the average person are an important indicator of changes in the standard of living.

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

An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy.What is the term used to describe the situation above?

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

Figure 7-1 Figure 7-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 7-1.At the market equilibrium

In markets with asymmetric information

In the United States in 2012,the percentage of firms that employed between 3 and 199 workers and offered health insurance as a fringe benefit to the workers was about

Between 1981 and 2011,the overall mortality rate in the United States

All of the following are part of the "state health exchanges" provision of the Patient Protection and Affordable Care Act (ACA)except

In the principal-agent relationship,the agent is

What are the main sources of health insurance in the United States?

Figure 7-2 Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-2.With insurance and a third-party payer system,the equilibrium quantity of medical services is

Most doctors and hospitals operate as private businesses in all of the following countries except

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

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

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

Briefly describe the most important differences between the market for health care and the market for other goods and services.

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

In the United States in 2012,the percentage of people that directly purchased an individual or family health insurance policy from an insurance company was about

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

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

Changes in the health of the average person are an important indicator of changes in the standard of living.

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

An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy.What is the term used to describe the situation above?

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

Figure 7-1 Figure 7-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 7-1.At the market equilibrium

In markets with asymmetric information

In the United States in 2012,the percentage of firms that employed between 3 and 199 workers and offered health insurance as a fringe benefit to the workers was about

Between 1981 and 2011,the overall mortality rate in the United States

All of the following are part of the "state health exchanges" provision of the Patient Protection and Affordable Care Act (ACA)except

In the principal-agent relationship,the agent is

What are the main sources of health insurance in the United States?

Figure 7-2 Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-2.With insurance and a third-party payer system,the equilibrium quantity of medical services is

Most doctors and hospitals operate as private businesses in all of the following countries except

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

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

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

Briefly describe the most important differences between the market for health care and the market for other goods and services.

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

In the United States in 2012,the percentage of people that directly purchased an individual or family health insurance policy from an insurance company was about

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

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