Question 1

In most circumstances,employees do not pay taxes on the value of health insurance their employers provide them.

Accepted Answer

A) True 
 B)False

Question 2

Moral hazard refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.

Accepted Answer

A) True 
 B)False

Question 3

Health insurance typically pays for most preventive care procedures 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 4

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.Marginal social benefit is represented by which curve?

Accepted Answer

A) D1 
B) D2 
C) Supply 
D) All of the above represent marginal social benefit. 
A) D1 
B) D2 
C) Supply 
D) All of the above represent marginal social benefit.

Question 5

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 6

In the United States in 2014,the percentage of people without any form of health insurance was about

Accepted Answer

A) 10%. 
B) 29%. 
C) 64%. 
D) 83%. 
A) 10%. 
B) 29%. 
C) 64%. 
D) 83%.

Question 7

Although most large firms in the United States offer their employees health insurance,fewer than two-thirds accept it.

Accepted Answer

A) True 
 B)False

Question 8

Identify and explain 4 of the difficulties in making cross-country comparisons in health care outcomes.

Accepted Answer

Data problems: Countries do not always c

Question 9

Figure 7-4 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 7-4.With insurance and a third-party payer system,what is the amount of the deadweight loss?

Accepted Answer

A) $0 
B) $1,500 
C) $3,000 
D) $9,500 
A) $0 
B) $1,500 
C) $3,000 
D) $9,500

Question 10

How can increases in a country's total income improve health?

Accepted Answer

Increases in a country's total income ma

Question 11

Of the following high-income countries,which has the highest obesity rate?

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 12

Uninsured patients receiving treatments at hospital emergency rooms that could have been provided less expensively at doctor's offices account for ________ of health care costs in the United States.

Accepted Answer

A) between 1 and 4 percent 
B) approximately 25 percent 
C) almost 40 percent 
D) between 15 and 20 percent 
A) between 1 and 4 percent 
B) approximately 25 percent 
C) almost 40 percent 
D) between 15 and 20 percent

Question 13

Of the following high-income countries,which has the highest female life expectancy at age 65?

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

In the United States in 2014,the percentage of people with private health insurance was about

Accepted Answer

A) 17%. 
B) 29%. 
C) 74%. 
D) 83%. 
A) 17%. 
B) 29%. 
C) 74%. 
D) 83%.

Question 15

Vaccinations tend to result in a positive externality.

Accepted Answer

A) True 
 B)False

Question 16

When people who buy insurance change their behavior after the purchase because they are protected from loss by the insurance,the insurance market is said to face the problem of

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 17

Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide are known as

Accepted Answer

A) fee-for-service plans. 
B) preferred provider organizations. 
C) single-health-payer systems. 
D) health maintenance organizations. 
A) fee-for-service plans. 
B) preferred provider organizations. 
C) single-health-payer systems. 
D) health maintenance organizations.

Question 18

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

Accepted Answer

A) Pharmaceutical firms and health insurance firms pay new taxes. 
B) Investors earning more than $200,000 pay a new tax on their investment income. 
C) Beginning in 2018,all taxes on employer-provided health insurance plans will be reduced or eliminated. 
D) Workers earning more than $200,000 pay higher Medicare payroll taxes. 
A) Pharmaceutical firms and health insurance firms pay new taxes. 
B) Investors earning more than $200,000 pay a new tax on their investment income. 
C) Beginning in 2018,all taxes on employer-provided health insurance plans will be reduced or eliminated. 
D) Workers earning more than $200,000 pay higher Medicare payroll taxes.

Question 19

Due to adverse selection,very few lemons will be sold in the market for used cars.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) individuals with pre-existing medical conditions are able to acquire health insurance. 
B) all policies must provide coverage for dependant children up to age 26. 
C) lifetime dollar maximums on coverage are prohibited. 
D) limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated. 
A) individuals with pre-existing medical conditions are able to acquire health insurance. 
B) all policies must provide coverage for dependant children up to age 26. 
C) lifetime dollar maximums on coverage are prohibited. 
D) limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated.

Exam 7: The Economics of Health Care

In most circumstances,employees do not pay taxes on the value of health insurance their employers provide them.

Moral hazard refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.

Health insurance typically pays for most preventive care procedures in all of the following countries except

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.Marginal social benefit is represented by which curve?

In markets with asymmetric information

In the United States in 2014,the percentage of people without any form of health insurance was about

Although most large firms in the United States offer their employees health insurance,fewer than two-thirds accept it.

Identify and explain 4 of the difficulties in making cross-country comparisons in health care outcomes.

Figure 7-4 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 7-4.With insurance and a third-party payer system,what is the amount of the deadweight loss?

How can increases in a country's total income improve health?

Of the following high-income countries,which has the highest obesity rate?

Uninsured patients receiving treatments at hospital emergency rooms that could have been provided less expensively at doctor's offices account for ________ of health care costs in the United States.

Of the following high-income countries,which has the highest female life expectancy at age 65?

In the United States in 2014,the percentage of people with private health insurance was about

Vaccinations tend to result in a positive externality.

When people who buy insurance change their behavior after the purchase because they are protected from loss by the insurance,the insurance market is said to face the problem of

Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide are known as

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

Due to adverse selection,very few lemons will be sold in the market for used cars.

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

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

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