Question 1

The U.S. market system is best described as a _______.

Accepted Answer

A)  Perfect egalitarian system. 
B)  Pure market system. 
C)  Dictatorship. 
D)  Mixed distribution system. 
E)  More than one of the above statements is true. 
A)  Perfect egalitarian system. 
B)  Pure market system. 
C)  Dictatorship. 
D)  Mixed distribution system. 
E)  More than one of the above statements is true. D

Question 2

Any point _______ the production possibilities frontier is efficient and attainable.

Accepted Answer

A)  inside of 
B)  along 
C)  outside of 
D)  both a and b are correct 
E)  both a and c are correct 
A)  inside of 
B)  along 
C)  outside of 
D)  both a and b are correct 
E)  both a and c are correct B

Question 3

_______ help explain the law of increasing opportunity costs.

Accepted Answer

A)  Differing consumer preferences 
B)  The characteristics of a pure market system 
C)  Advancements in technology 
D)  Imperfect substitutability of resources 
E)  Decreases in the availability of natural resources 
A)  Differing consumer preferences 
B)  The characteristics of a pure market system 
C)  Advancements in technology 
D)  Imperfect substitutability of resources 
E)  Decreases in the availability of natural resources D

Question 4

Since 1975, the uninsurance rate in the U.S. has increased.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following accounts for the greatest amount of health care spending?

Accepted Answer

A)  Public health 
B)  Physician services 
C)  Prescription drugs 
D)  Nursing home care 
E)  Hospital services 
A)  Public health 
B)  Physician services 
C)  Prescription drugs 
D)  Nursing home care 
E)  Hospital services

Question 6

Among developed countries, the U.S. has the lowest infant mortality rate.

Accepted Answer

A) True 
 B)False

Question 7

_______ is the largest source of health care funds in the U.S.

Accepted Answer

A)  Out-of-pocket 
B)  Medicaid 
C)  Medicare 
D)  Private health insurance 
E)  Workers' compensation 
A)  Out-of-pocket 
B)  Medicaid 
C)  Medicare 
D)  Private health insurance 
E)  Workers' compensation

Question 8

All points along the production possibilities frontier maximize equity.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following best describes productive efficiency?

Accepted Answer

A)  Producing a medical service at the lowest possible cost. 
B)  Constructing a new medical facility to exactly offset a market shortage of such services. 
C)  Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her. 
D)  None of the above. 
E)  More than one of the above statements is true. 
A)  Producing a medical service at the lowest possible cost. 
B)  Constructing a new medical facility to exactly offset a market shortage of such services. 
C)  Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her. 
D)  None of the above. 
E)  More than one of the above statements is true.

Question 10

Which of the following is not a basic question that must be answered as a result of scarcity?

Accepted Answer

A)  Who should decide the amount of money spent on medical goods and services? 
B)  Who should receive the medical goods and services that are produced? 
C)  What mix of nonmedical and medical goods and services should be produced in the macroeconomy? 
D)  What specific health care resources should be used to produce the chosen medical goods and services? 
E)  What mix of medical goods and services should be produced in the health economy? 
A)  Who should decide the amount of money spent on medical goods and services? 
B)  Who should receive the medical goods and services that are produced? 
C)  What mix of nonmedical and medical goods and services should be produced in the macroeconomy? 
D)  What specific health care resources should be used to produce the chosen medical goods and services? 
E)  What mix of medical goods and services should be produced in the health economy?

Question 11

The components of the three-legged stool of medical care are _______.

Accepted Answer

A)  costs, access, efficiency 
B)  costs, equity, access 
C)  access, equity, efficiency 
D)  efficiency, costs, quality 
E)  costs, access, quality 
A)  costs, access, efficiency 
B)  costs, equity, access 
C)  access, equity, efficiency 
D)  efficiency, costs, quality 
E)  costs, access, quality

Question 12

Physicians are a scarce resource in health care markets.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following best describes allocative efficiency?

Accepted Answer

A)  Producing a medical service at the lowest possible cost. 
B)  Constructing a new medical facility to exactly offset a market shortage of such services. 
C)  Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her. 
D)  None of the above. 
E)  More than one of the above statements is true. 
A)  Producing a medical service at the lowest possible cost. 
B)  Constructing a new medical facility to exactly offset a market shortage of such services. 
C)  Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her. 
D)  None of the above. 
E)  More than one of the above statements is true.

Question 14

Which of the following represents an opportunity cost?

Accepted Answer

A)  Increases in medical technology. 
B)  Reduction in fees for Medicare patients. 
C)  Additional spending on public health initiatives. 
D)  Increased enrollments at medical schools. 
E)  Forgone geriatric care to provide additional maternity services. 
A)  Increases in medical technology. 
B)  Reduction in fees for Medicare patients. 
C)  Additional spending on public health initiatives. 
D)  Increased enrollments at medical schools. 
E)  Forgone geriatric care to provide additional maternity services.

Question 15

Opportunity costs only occur when there is government involvement in markets such as health care.

Accepted Answer

A) True 
 B)False

The U.S. market system is best described as a _______.

Any point _______ the production possibilities frontier is efficient and attainable.

_______ help explain the law of increasing opportunity costs.

Since 1975, the uninsurance rate in the U.S. has increased.

Which of the following accounts for the greatest amount of health care spending?

Among developed countries, the U.S. has the lowest infant mortality rate.

_______ is the largest source of health care funds in the U.S.

All points along the production possibilities frontier maximize equity.

Which of the following best describes productive efficiency?

Which of the following is not a basic question that must be answered as a result of scarcity?

The components of the three-legged stool of medical care are _______.

Physicians are a scarce resource in health care markets.

Which of the following best describes allocative efficiency?

Which of the following represents an opportunity cost?

Opportunity costs only occur when there is government involvement in markets such as health care.

Health and Medical Care: an Economic Perspective

Cost and Benefit Analysis

Health Care Systems and Institutions

The Demand for Medical Care

The Demand for Medical Insurance: Traditional and Managed Care Coverage

Medical Care Production and Costs

Structure, Conduct, Performance, and Market Analysis

Government, Health, and Medical Care

Government As Health Insurer

The Private Health Insurance Industry

The Physician Services Industry

The Hospital Services Industry

The Pharmaceutical Industry

The Long-Term Care Industry

Health Insurance Reform

Filters

Exam 1: Introduction

The U.S. market system is best described as a _______.

Any point _______ the production possibilities frontier is efficient and attainable.

_______ help explain the law of increasing opportunity costs.

Since 1975, the uninsurance rate in the U.S. has increased.

Which of the following accounts for the greatest amount of health care spending?

Among developed countries, the U.S. has the lowest infant mortality rate.

_______ is the largest source of health care funds in the U.S.

All points along the production possibilities frontier maximize equity.

Which of the following best describes productive efficiency?

Which of the following is not a basic question that must be answered as a result of scarcity?

The components of the three-legged stool of medical care are _______.

Physicians are a scarce resource in health care markets.

Which of the following best describes allocative efficiency?

Which of the following represents an opportunity cost?

Opportunity costs only occur when there is government involvement in markets such as health care.

Health and Medical Care: an Economic Perspective

Cost and Benefit Analysis

Health Care Systems and Institutions

The Demand for Medical Care

The Demand for Medical Insurance: Traditional and Managed Care Coverage

Medical Care Production and Costs

Structure, Conduct, Performance, and Market Analysis

Government, Health, and Medical Care

Government As Health Insurer

The Private Health Insurance Industry

The Physician Services Industry

The Hospital Services Industry

The Pharmaceutical Industry

The Long-Term Care Industry

Health Insurance Reform

Filters