Question 1

Why didn't the supply of medical care increase in the United States in spite of increase in its price?

Accepted Answer

A) Pharmacists were earlier restricted to dispense drugs but now they are allowed to do so 
B) New drugs can easily enter the U.S.market as government regulations are lax 
C) The Medicare system restricts the movement of resources from one part of the market to another 
D) Relaxation of the restrictions imposed by the U.S.government earlier 
E) The market for medical care is a free and unregulated market. 
A) Pharmacists were earlier restricted to dispense drugs but now they are allowed to do so 
B) New drugs can easily enter the U.S.market as government regulations are lax 
C) The Medicare system restricts the movement of resources from one part of the market to another 
D) Relaxation of the restrictions imposed by the U.S.government earlier 
E) The market for medical care is a free and unregulated market. C

Question 2

Direct payments for medical care consist of out-of-pocket payments made by individuals, copayments, and deductibles required by many third-party payers.

Accepted Answer

A) True 
 B)False  True

Question 3

The system of adjusting social security benefits annually as the cost of living increases in the United States has been a result of intellectual foresight by the American economists.

Accepted Answer

A) True 
 B)False  False

Question 4

The results of privatizing the social security system has been negative at large in most of the economies.

Accepted Answer

A) True 
 B)False

Question 5

The social security taxes that the working population pays today are used to provide benefits for current retirees.

Accepted Answer

A) True 
 B)False

Question 6

People who oppose the establishment of an open market in human organs justify their view on the ground that:

Accepted Answer

A) it would yield huge profits to the privately owned medical care centers. 
B) it would lead to a chronic organ shortage. 
C) it would result in the exploitation of the poor. 
D) it would induce people to fritter away money earned through the sale of organs. 
E) although the poor people are in greater need of the organs, yet they would not be able to afford them because of their high price. 
A) it would yield huge profits to the privately owned medical care centers. 
B) it would lead to a chronic organ shortage. 
C) it would result in the exploitation of the poor. 
D) it would induce people to fritter away money earned through the sale of organs. 
E) although the poor people are in greater need of the organs, yet they would not be able to afford them because of their high price.

Question 7

Empirical evidences suggest that the expenditure on prescription drugs grew by an annual average of 15 percent since 1995.In the light of this observation which of the following statements is true?

Accepted Answer

A) The restrictions imposed by the government on drug manufacturing firms were relaxed 
B) Medicare has increased the ability to buy drugs 
C) FDA has been easily granting permission to drug manufacturing companies to sell their new drugs. 
D) Cost of producing new drugs have declined 
E) Discovery of expensive new drugs reduced the demand for prescription drugs. 
A) The restrictions imposed by the government on drug manufacturing firms were relaxed 
B) Medicare has increased the ability to buy drugs 
C) FDA has been easily granting permission to drug manufacturing companies to sell their new drugs. 
D) Cost of producing new drugs have declined 
E) Discovery of expensive new drugs reduced the demand for prescription drugs.

Question 8

Which of the following statements about Medicare is correct?

Accepted Answer

A) Medicare covers the entire cost of hospital or nursing home care of the old people. 
B) Medicare had emerged in the 1950s. 
C) Medicare covers the first 100 days of hospital or nursing home care of the old people. 
D) Medicare is available on the basis of need. 
E) Medicare is funded by property taxes. 
A) Medicare covers the entire cost of hospital or nursing home care of the old people. 
B) Medicare had emerged in the 1950s. 
C) Medicare covers the first 100 days of hospital or nursing home care of the old people. 
D) Medicare is available on the basis of need. 
E) Medicare is funded by property taxes.

Question 9

The figure given below represents demand for and supply of hospital beds in Anytown, U.S.A. , as shown by curves D and S1 in the following figure.If the hospital receives permission to expand, its new supply curve will be S2.Price level P1 is the fixed prospective payment reimbursement rate paid by Medicare to the hospital, regardless of actual cost. Figure 32.3   According to Figure 32.3, given the existing demand for its beds, after the hospital completes its expansion it will maximize its occupancy rate by charging a price level:

Accepted Answer

A) P1. 
B) P2. 
C) P3. 
D) (P1+ P2)/2. 
E) P3-P1. 
A) P1. 
B) P2. 
C) P3. 
D) (P1+ P2)/2. 
E) P3-P1.

Question 10

Which of the following reasons justifies the increase in the expenditure on prescription drugs in the U.S.?

Accepted Answer

A) Lack of sufficient investment in research and development of new drugs 
B) Proper functioning of the Medicare and Medicaid programs 
C) Insufficient supply of prescription drugs leading to a shortage 
D) Increasing returns to scale experienced by the drug manufacturers 
E) Decrease in the time required to introduce a new drug into the market 
A) Lack of sufficient investment in research and development of new drugs 
B) Proper functioning of the Medicare and Medicaid programs 
C) Insufficient supply of prescription drugs leading to a shortage 
D) Increasing returns to scale experienced by the drug manufacturers 
E) Decrease in the time required to introduce a new drug into the market

Question 11

A part of the supply to the human organs market comes from the organs harvested from people who die suddenly, such as those killed in accidents.

Accepted Answer

A) True 
 B)False

Question 12

Government restrictions prevent the market from allocating resources to where they have the highest value.

Accepted Answer

A) True 
 B)False

Question 13

Medical care in the United States is not only expensive but also technologically backward than other nations.

Accepted Answer

A) True 
 B)False

Question 14

The aging of the American population has brought to the forefront of the nation the concern that social security is no longer a viable option for future retirees and that the financial viability of the system depends on:

Accepted Answer

A) how much each retiree has contributed over his or her lifetime to his or her individual social security account. 
B) the ratio of those working to those retired. 
C) the ratio of the total earning of an individual over his lifetime to the number of his service years. 
D) the interest rate in effect at the time a contributor first began to contribute to his or her individual social security account. 
E) the interest rate in effect over the entire course of time that a contributor has paid into the fund. 
A) how much each retiree has contributed over his or her lifetime to his or her individual social security account. 
B) the ratio of those working to those retired. 
C) the ratio of the total earning of an individual over his lifetime to the number of his service years. 
D) the interest rate in effect at the time a contributor first began to contribute to his or her individual social security account. 
E) the interest rate in effect over the entire course of time that a contributor has paid into the fund.

Question 15

_____ account for a majority of the health care expenditure in the United States.

Accepted Answer

A) Physician's services 
B) Prescription drugs 
C) Personal health care services 
D) Hospital services 
E) Medical equipments at retail stores 
A) Physician's services 
B) Prescription drugs 
C) Personal health care services 
D) Hospital services 
E) Medical equipments at retail stores

Question 16

The U.S.government spends more on social security than it spends on national defense.

Accepted Answer

A) True 
 B)False

Question 17

The increase in physicians' fees in the U.S.is most likely to have resulted from a(n):

Accepted Answer

A) decline of the supply of doctors. 
B) decline in the number of hospitals. 
C) increase in emigration from the U.S. 
D) increase in the supply of doctors. 
E) increase in the U.S.population. 
A) decline of the supply of doctors. 
B) decline in the number of hospitals. 
C) increase in emigration from the U.S. 
D) increase in the supply of doctors. 
E) increase in the U.S.population.

Question 18

Which of the following has led to increased cost of health services?

Accepted Answer

A) The demand for health services have declined over the time. 
B) The demand for health services has increased relative to its supply. 
C) Supply of health services have increased relative to its demand. 
D) Both demand and supply of health services have increased at the same pace. 
E) The government has invested heavily on health infrastructure. 
A) The demand for health services have declined over the time. 
B) The demand for health services has increased relative to its supply. 
C) Supply of health services have increased relative to its demand. 
D) Both demand and supply of health services have increased at the same pace. 
E) The government has invested heavily on health infrastructure.

Question 19

The social security system in Chile is partially privatized as a part of the taxes is used to run government expenses and the rest can be invested by the worker.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a consequence of government programs like Medicare and Medicaid?

Accepted Answer

A) Increased cost of medical care 
B) Increased price elasticity of demand for medical care 
C) Increase in the the number of private health insurance companies 
D) Increased demand for health care 
E) Increase in the marginal cost of medical care 
A) Increased cost of medical care 
B) Increased price elasticity of demand for medical care 
C) Increase in the the number of private health insurance companies 
D) Increased demand for health care 
E) Increase in the marginal cost of medical care

Exam 53: Aging, Social Security and Health Care

Why didn't the supply of medical care increase in the United States in spite of increase in its price?

Direct payments for medical care consist of out-of-pocket payments made by individuals, copayments, and deductibles required by many third-party payers.

The system of adjusting social security benefits annually as the cost of living increases in the United States has been a result of intellectual foresight by the American economists.

The results of privatizing the social security system has been negative at large in most of the economies.

The social security taxes that the working population pays today are used to provide benefits for current retirees.

People who oppose the establishment of an open market in human organs justify their view on the ground that:

Empirical evidences suggest that the expenditure on prescription drugs grew by an annual average of 15 percent since 1995.In the light of this observation which of the following statements is true?

Which of the following statements about Medicare is correct?

Which of the following reasons justifies the increase in the expenditure on prescription drugs in the U.S.?

A part of the supply to the human organs market comes from the organs harvested from people who die suddenly, such as those killed in accidents.

Government restrictions prevent the market from allocating resources to where they have the highest value.

Medical care in the United States is not only expensive but also technologically backward than other nations.

The aging of the American population has brought to the forefront of the nation the concern that social security is no longer a viable option for future retirees and that the financial viability of the system depends on:

_____ account for a majority of the health care expenditure in the United States.

The U.S.government spends more on social security than it spends on national defense.

The increase in physicians' fees in the U.S.is most likely to have resulted from a(n):

Which of the following has led to increased cost of health services?

The social security system in Chile is partially privatized as a part of the taxes is used to run government expenses and the rest can be invested by the worker.

Which of the following is a consequence of government programs like Medicare and Medicaid?

Economics: The World Around You

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

National Income Accounting

an Introduction to the Foreign Exchange Market and the Balance of Payments

Consumer Choice

Supply: The Costs of Doing Business

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Profit Maximization

Aggregate Expenditures

Perfect Competition

Income and Expenditures Equilibrium

Monopoly

Fiscal Policy

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Money and Banking

Market Failures, Government Failures, and Rent Seeking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Resource Markets

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

The Labor Market

Capital Markets

Economic Growth

Development Economics

the Land Market and Natural Resources

Aging, Social Security and Health Care

Globalization

Elasticity: Demand and Supply

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

Consumer Choice

International Trade Restrictions

World Trade Equilibrium

Exchange Rates and Financial Links Between Countries

International Trade Restrictions

Supply: the Costs of Doing Business

Exchange Rates and Financial Links Between Countries

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

The Land Market and Natural Resources

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

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