Question 1

The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA)will

Accepted Answer

A) increase federal government spending by about $2 trillion over 10 years. 
B) cost the government significantly more than the additional taxes and fees enacted under the law will bring in. 
C) eliminate the budget deficit within 10 years. 
D) actually reduce government spending over a 20 year period. 
A) increase federal government spending by about $2 trillion over 10 years. 
B) cost the government significantly more than the additional taxes and fees enacted under the law will bring in. 
C) eliminate the budget deficit within 10 years. 
D) actually reduce government spending over a 20 year period.

Question 2

Economists John Cogan,Glenn Hubbard,and Daniel Kessler have estimated that repealing the tax preference for employer-provided health insurance would

Accepted Answer

A) significantly reduce the effectiveness of the health care received by those enrolled in these programs. 
B) increase overall spending on health care as consumers would have to pay a higher price for medical services. 
C) drive up prices for health care coverage since insurance reimbursements to doctors would be reduced. 
D) reduce spending by people enrolled in these programs by 33 percent. 
A) significantly reduce the effectiveness of the health care received by those enrolled in these programs. 
B) increase overall spending on health care as consumers would have to pay a higher price for medical services. 
C) drive up prices for health care coverage since insurance reimbursements to doctors would be reduced. 
D) reduce spending by people enrolled in these programs by 33 percent.

Question 3

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 4

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 5

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 6

What is the principal-agent problem?

Accepted Answer

The principal-agent problem is

Question 7

Greater availability of lower-cost drugs will tend to shift the ________ curve for medical services to the ________.

Accepted Answer

A) demand;left 
B) demand;right 
C) supply;left 
D) supply;right 
A) demand;left 
B) demand;right 
C) supply;left 
D) supply;right

Question 8

Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents.

Accepted Answer

A) True 
 B)False

Question 9

In the 1973 movie Save the Tiger,Jack Lemmon plays Harry Stoner,the CEO of a clothing manufacturer whose business has fallen on hard times.In one of the key scenes of the movie,Stoner tries to convince his partner that they should hire someone to burn one of their buildings in order to collect on their insurance policy.Harry Stoner's actions are an example of

Accepted Answer

A) adverse selection. 
B) moral hazard. 
C) self-interest. 
D) asymmetric information. 
A) adverse selection. 
B) moral hazard. 
C) self-interest. 
D) asymmetric information.

Question 10

By the year 2015,health care spending on Medicare,Medicaid,and other U.S.government programs as a percentage of GDP had reached a level of

Accepted Answer

A) 2.2 percent. 
B) 6 percent. 
C) 17.5 percent. 
D) 21.5 percent. 
A) 2.2 percent. 
B) 6 percent. 
C) 17.5 percent. 
D) 21.5 percent.

Question 11

In the United States in 2014,about ________ of uninsured people live in families in which at least one member has a job.

Accepted Answer

A) 12%. 
B) 38%. 
C) 70%. 
D) 98%. 
A) 12%. 
B) 38%. 
C) 70%. 
D) 98%.

Question 12

Doctors have ________ incentive to control their costs when consumers ________ for a visit to the doctor's office.

Accepted Answer

A) more;only pay a deductible 
B) less;only pay a deductible 
C) less;pay entirely out of pocket 
D) more;have a third-party payer that pays 
A) more;only pay a deductible 
B) less;only pay a deductible 
C) less;pay entirely out of pocket 
D) more;have a third-party payer that pays

Question 13

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

Accepted Answer

A) additional moral hazard. 
B) positive externalities. 
C) greater asymmetric information. 
D) more adverse selection. 
A) additional moral hazard. 
B) positive externalities. 
C) greater asymmetric information. 
D) more adverse selection.

Question 14

Figure 7-2 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 7-2.At the market equilibrium,the deadweight loss is equal to

Accepted Answer

A) $0. 
B) $500,000. 
C) $1,000,000. 
D) $2,000,000. 
A) $0. 
B) $500,000. 
C) $1,000,000. 
D) $2,000,000.

Question 15

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 16

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 efficient equilibrium

Accepted Answer

A) economic surplus is maximized. 
B) economic surplus is minimized. 
C) economic surplus is zero. 
D) economic surplus is negative. 
A) economic surplus is maximized. 
B) economic surplus is minimized. 
C) economic surplus is zero. 
D) economic surplus is negative.

Question 17

Compared to other high-income countries,health care spending per person in the United States has been

Accepted Answer

A) growing at a faster rate. 
B) declining at a faster rate. 
C) growing at approximately the same rate. 
D) declining at approximately the same rate. 
A) growing at a faster rate. 
B) declining at a faster rate. 
C) growing at approximately the same rate. 
D) declining at approximately the same rate.

Question 18

Under current U.S.tax laws,individuals do not pay taxes on health insurance benefits they receive from their employers.

Accepted Answer

A) True 
 B)False

Question 19

One consequence of adverse selection in the market for used cars is that most used cars sold will be lemons.

Accepted Answer

A) True 
 B)False

Question 20

The individual mandate provision of the ACA requires

Accepted Answer

A) every U.S.resident to have health insurance. 
B) every U.S.company to provide health insurance to its employees. 
C) every employed person to pay for his or her own health insurance. 
D) every private insurance company to provide free health care to its current policy holders. 
A) every U.S.resident to have health insurance. 
B) every U.S.company to provide health insurance to its employees. 
C) every employed person to pay for his or her own health insurance. 
D) every private insurance company to provide free health care to its current policy holders.

Exam 7: The Economics of Health Care

The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA)will

Economists John Cogan,Glenn Hubbard,and Daniel Kessler have estimated that repealing the tax preference for employer-provided health insurance would

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

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

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

What is the principal-agent problem?

Greater availability of lower-cost drugs will tend to shift the ________ curve for medical services to the ________.

Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents.

By the year 2015,health care spending on Medicare,Medicaid,and other U.S.government programs as a percentage of GDP had reached a level of

In the United States in 2014,about ________ of uninsured people live in families in which at least one member has a job.

Doctors have ________ incentive to control their costs when consumers ________ for a visit to the doctor's office.

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

Figure 7-2 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 7-2.At the market equilibrium,the deadweight loss is equal to

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

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 efficient equilibrium

Compared to other high-income countries,health care spending per person in the United States has been

Under current U.S.tax laws,individuals do not pay taxes on health insurance benefits they receive from their employers.

One consequence of adverse selection in the market for used cars is that most used cars sold will be lemons.

The individual mandate provision of the ACA requires

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

Greater availability of lower-cost drugs will tend to shift the curve for medical services to the .

Doctors have incentive to control their costs when consumers for a visit to the doctor's office.