Question 1

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

Accepted Answer

The percentage of Americans covered by v

Question 2

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 3

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 4

Which of the following is a part of the "employer mandate" provision of the Patient Protection and Affordable Care Act (ACA)?

Accepted Answer

A) Every firm with more than 3 full-time employees must offer health insurance to its employees and must automatically enroll them in the plan. 
B) Small businesses with fewer than 50 employees are exempt from being required to participate in the program. 
C) Firms with 50 or more full-time employees must offer health insurance or pay a $3,000 fine to the federal government for every employee who receives a tax credit from the federal government for obtaining health insurance through a health insurance marketplace. 
D) Every resident of the United States must have health insurance that meets certain basic requirements. 
A) Every firm with more than 3 full-time employees must offer health insurance to its employees and must automatically enroll them in the plan. 
B) Small businesses with fewer than 50 employees are exempt from being required to participate in the program. 
C) Firms with 50 or more full-time employees must offer health insurance or pay a $3,000 fine to the federal government for every employee who receives a tax credit from the federal government for obtaining health insurance through a health insurance marketplace. 
D) Every resident of the United States must have health insurance that meets certain basic requirements.

Question 5

On average,people in low-income countries ________ than people in high-income countries.

Accepted Answer

A) have a longer life expectancy 
B) are subject to a lower infant mortality rate 
C) are shorter 
D) are exposed to fewer severe diseases 
A) have a longer life expectancy 
B) are subject to a lower infant mortality rate 
C) are shorter 
D) are exposed to fewer severe diseases

Question 6

The Congressional Budget Office estimates that the additional taxes and fees enacted under the ACA will be enough to pay for the plan and reduce the federal government's budget deficit.

Accepted Answer

A) True 
 B)False

Question 7

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

Accepted Answer

A) is a primary cause of price increases. 
B) reduces the incentive to work. 
C) shifts out a country's production possibilities frontier. 
D) increases consumer surplus. 
A) is a primary cause of price increases. 
B) reduces the incentive to work. 
C) shifts out a country's production possibilities frontier. 
D) increases consumer surplus.

Question 8

In the United States,health care spending on people over age 65 is ________ on people aged 18 to 24.

Accepted Answer

A) one third as much as 
B) twice as much as 
C) six times greater than 
D) forty times greater than 
A) one third as much as 
B) twice as much as 
C) six times greater than 
D) forty times greater than

Question 9

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is

Accepted Answer

A) inefficient market hypothesis. 
B) moral hazard. 
C) information disparity. 
D) asymmetric information. 
A) inefficient market hypothesis. 
B) moral hazard. 
C) information disparity. 
D) asymmetric information.

Question 10

What is health insurance?

Accepted Answer

Health insurance is a contract

Question 11

Life expectancy at birth in the United States has more than doubled since 1850.

Accepted Answer

A) True 
 B)False

Question 12

Between 1981 and 2013,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 13

In the United States in 2014,the percentage of people who received health insurance through a government program was about

Accepted Answer

A) 10%. 
B) 16%. 
C) 36%. 
D) 64%. 
A) 10%. 
B) 16%. 
C) 36%. 
D) 64%.

Question 14

Economists John Cogan,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 15

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

Accepted Answer

A) Individuals are allowed to opt out of the insurance program if they can prove they have no serious health issues. 
B) In 2016,fines for not having health insurance are the greater of $695 per person or 2.5 percent of income. 
C) Individuals who do not acquire health insurance will be subject to a fine. 
D) With limited exceptions,every resident of the United States is 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. 
B) In 2016,fines for not having health insurance are the greater of $695 per person or 2.5 percent of income. 
C) Individuals who do not acquire health insurance will be subject to a fine. 
D) With limited exceptions,every resident of the United States is required to have health insurance that meets certain basic requirements.

Question 16

Replacing employment-based health care with a government-run system could reduce employers payments for their workers insurance,but the amount that they would have to pay in overall compensation

Accepted Answer

A) would remain essentially unchanged. 
B) would dramatically increase. 
C) would fall to zero. 
D) would dramatically decrease. 
A) would remain essentially unchanged. 
B) would dramatically increase. 
C) would fall to zero. 
D) would dramatically decrease.

Question 17

In 2015,the average height of adult males in the United States was

Accepted Answer

A) 5' 7.0". 
B) 5' 9.5". 
C) 6' 0.0". 
D) 6' 4.75". 
A) 5' 7.0". 
B) 5' 9.5". 
C) 6' 0.0". 
D) 6' 4.75".

Question 18

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will

Accepted Answer

A) generate additional moral hazard. 
B) create negative externalities. 
C) reduce asymmetric information. 
D) generate more adverse selection. 
A) generate additional moral hazard. 
B) create negative externalities. 
C) reduce asymmetric information. 
D) generate more adverse selection.

Question 19

What is the principal-agent problem?

Accepted Answer

A) It is a problem caused by a person (principal)who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way. 
B) It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them. 
C) It is a problem of the power system of boss and subordinate where the boss (principal)exerts influence over his subordinates (agents)using punishment or threat. 
D) It is a problem that exists when a person (principal)has more information about the task than the agent he hires to perform the task. 
A) It is a problem caused by a person (principal)who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way. 
B) It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them. 
C) It is a problem of the power system of boss and subordinate where the boss (principal)exerts influence over his subordinates (agents)using punishment or threat. 
D) It is a problem that exists when a person (principal)has more information about the task than the agent he hires to perform the task.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 7: The Economics of Health Care

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

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 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.

Which of the following is a part of the "employer mandate" provision of the Patient Protection and Affordable Care Act (ACA)?

On average,people in low-income countries ________ than people in high-income countries.

The Congressional Budget Office estimates that the additional taxes and fees enacted under the ACA will be enough to pay for the plan and reduce the federal government's budget deficit.

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

In the United States,health care spending on people over age 65 is ________ on people aged 18 to 24.

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is

What is health insurance?

Life expectancy at birth in the United States has more than doubled since 1850.

Between 1981 and 2013,deaths from kidney disease increased largely due to the effects of

In the United States in 2014,the percentage of people who received health insurance through a government program was about

Economists John Cogan,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.

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

Replacing employment-based health care with a government-run system could reduce employers payments for their workers insurance,but the amount that they would have to pay in overall compensation

In 2015,the average height of adult males in the United States was

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will

What is the principal-agent problem?

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

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

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.