Question 1

The American Medical Association helps increase:

Accepted Answer

A) price competition among local physicians in the same area. 
B) the ability of each physician to act as a local monopoly. 
C) freedom of physicians to advertise. 
D) consumers' ability to obtain complete information about prices or professional quality. 
E) the ability of new, entering physicians to compete with established ones by charging lower prices. 
A) price competition among local physicians in the same area. 
B) the ability of each physician to act as a local monopoly. 
C) freedom of physicians to advertise. 
D) consumers' ability to obtain complete information about prices or professional quality. 
E) the ability of new, entering physicians to compete with established ones by charging lower prices.

Question 2

The American Medical Association encourages the young physicians to advertise to attract more patients.

Accepted Answer

A) True 
 B)False

Question 3

The figure below shows the demand (AD)and supply (SS1)curves of medical care. Figure 32.4   In Figure 32.4, which of the following regions on the graph represents those people who are not willing and able to pay the price P1 for availing medical care?

Accepted Answer

A) AE 
B) SE 
C) AD 
D) ED 
E) ES1 
A) AE 
B) SE 
C) AD 
D) ED 
E) ES1

Question 4

Demand for medical care remaining constant, if the supply of medical care is decreased, the price of medical care increases.

Accepted Answer

A) True 
 B)False

Question 5

Privatization of the social security system would lead to which of the following adverse outcomes?

Accepted Answer

A) The private companies would make a lot of profit and deprive the investors of their legitimate returns. 
B) Many people would invest irrationally and end up earning nothing. 
C) The amount of benefit received would drastically fall as the private firms do not have social obligations. 
D) It might lead to accumulation of substantial black money. 
E) There would be an increase in government borrowing and debt creation. 
A) The private companies would make a lot of profit and deprive the investors of their legitimate returns. 
B) Many people would invest irrationally and end up earning nothing. 
C) The amount of benefit received would drastically fall as the private firms do not have social obligations. 
D) It might lead to accumulation of substantial black money. 
E) There would be an increase in government borrowing and debt creation.

Question 6

Which of the following is the most controversial proposal suggested for making the system of social security more efficient?

Accepted Answer

A) Privatizing the system of social security 
B) Raising the eligibility age from 75 years to 85 years 
C) Limiting the disbursement of retirement benefits to the backward section of the population only 
D) Paying social security benefits to everyone irrespective of their levels of income 
E) Reducing the amount disbursed in retirement benefits 
A) Privatizing the system of social security 
B) Raising the eligibility age from 75 years to 85 years 
C) Limiting the disbursement of retirement benefits to the backward section of the population only 
D) Paying social security benefits to everyone irrespective of their levels of income 
E) Reducing the amount disbursed in retirement benefits

Question 7

The demand for unskilled workers is highly price elastic.This means that a tax imposed partly on unskilled workers and partly on their employers:

Accepted Answer

A) will be paid primarily by the employers. 
B) will be paid primarily by the employees. 
C) will be equally paid by employers and employees. 
D) will be totally passed on to consumers. 
E) will be paid only by the employers. 
A) will be paid primarily by the employers. 
B) will be paid primarily by the employees. 
C) will be equally paid by employers and employees. 
D) will be totally passed on to consumers. 
E) will be paid only by the employers.

Question 8

Government programs like Medicaid and Medicare have been created as per the belief that everyone has an inalienable right to medical care.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following facts is true of medicare?

Accepted Answer

A) It has caused the price elasticity of the demand for health care to increase. 
B) It is financed by state excise and sales taxes and is available on the basis of need and not disability. 
C) It covers the cost of first 100 days of hospital treatment provided only to the unemployed people. 
D) It covers the cost of the first 100 days of hospital or nursing home care for the elderly. 
E) They are subsidies given by the U.S.government to private health insurance companies. 
A) It has caused the price elasticity of the demand for health care to increase. 
B) It is financed by state excise and sales taxes and is available on the basis of need and not disability. 
C) It covers the cost of first 100 days of hospital treatment provided only to the unemployed people. 
D) It covers the cost of the first 100 days of hospital or nursing home care for the elderly. 
E) They are subsidies given by the U.S.government to private health insurance companies.

Question 10

One proposal for solving the social security problem is privatization.This means:

Accepted Answer

A) refusing to provide retirement benefits, thereby forcing people to use private savings. 
B) providing retirement benefits only to those who had worked for a private firm. 
C) providing retirement benefits only to those who also save privately. 
D) allowing participants to choose how their tax funds are to be invested. 
E) preventing participants from paying taxes on their retirement income. 
A) refusing to provide retirement benefits, thereby forcing people to use private savings. 
B) providing retirement benefits only to those who had worked for a private firm. 
C) providing retirement benefits only to those who also save privately. 
D) allowing participants to choose how their tax funds are to be invested. 
E) preventing participants from paying taxes on their retirement income.

Question 11

The following figure shows the demand (D)and supply (S)curves of human organs Figure 32.5   In Figure 32.5, if the price for human organs falls to P3:

Accepted Answer

A) there will be a surplus of human organs by Q5 - Q2. 
B) there will be a shortage of human organs by Q4 - Q3. 
C) there will be a shortage of human organs by Q5 - Q3. 
D) there will be a surplus of human organs by Q4 - Q3. 
E) there will be a shortage of human organs by Q5 - Q1. 
A) there will be a surplus of human organs by Q5 - Q2. 
B) there will be a shortage of human organs by Q4 - Q3. 
C) there will be a shortage of human organs by Q5 - Q3. 
D) there will be a surplus of human organs by Q4 - Q3. 
E) there will be a shortage of human organs by Q5 - Q1.

Question 12

It has been pointed out that there is a unidirectional flow of human organs- from poor to rich, from the Third World to the First World.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a joint federal and state health program that pays for the health care of poor families and disabled?

Accepted Answer

A) Medicure 
B) Medicare 
C) Mediaid 
D) Medicaid 
E) Mediclaim 
A) Medicure 
B) Medicare 
C) Mediaid 
D) Medicaid 
E) Mediclaim

Question 14

If a futures market for human organs can be developed, everyone would tend to volunteer to donate organs as they would receive some income for almost no cost.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following acts specifies the tax contributions of the employer and the employee for the social security program in the U.S.?

Accepted Answer

A) The National Insurance Act 
B) The Child Support, Pension, and Social Security Act 
C) The Social Security Administration Act 
D) The Cost-of-Living Allowance Act 
E) The Federal Insurance Contributions Act 
A) The National Insurance Act 
B) The Child Support, Pension, and Social Security Act 
C) The Social Security Administration Act 
D) The Cost-of-Living Allowance Act 
E) The Federal Insurance Contributions Act

Question 16

Physicians' fees have risen rapidly in the face of an expanding supply of physicians in the last two decades.Which of the following reasons best explains this phenomenon?

Accepted Answer

A) Restrictions on advertising enable established physicians to keep new, entering physicians from competing for their customers. 
B) Fees charged by physicians are fixed by the government. 
C) Consumers are able to obtain complete information about fees or professional qualities of the physicians. 
D) Restrictions on physicians' freedom to relocate within certain geographic boundaries have led to price fixing within the medical profession. 
E) The demand for physicians' services has steadily declined over the past three decades. 
A) Restrictions on advertising enable established physicians to keep new, entering physicians from competing for their customers. 
B) Fees charged by physicians are fixed by the government. 
C) Consumers are able to obtain complete information about fees or professional qualities of the physicians. 
D) Restrictions on physicians' freedom to relocate within certain geographic boundaries have led to price fixing within the medical profession. 
E) The demand for physicians' services has steadily declined over the past three decades.

Question 17

Which of the following factors are responsible for the growth of older population in the developed countries?

Accepted Answer

A) High birth and death rates 
B) High birth rate and decreased life expectancy 
C) Low birth rates and increased life expectancy 
D) Low birth rates and high death rates. 
E) High birth rates and increased life expectancy. 
A) High birth and death rates 
B) High birth rate and decreased life expectancy 
C) Low birth rates and increased life expectancy 
D) Low birth rates and high death rates. 
E) High birth rates and increased life expectancy.

Question 18

One of the myths about social security is that the government runs a surplus in the Social Security Trust Fund.Which of the following debunks this myth?

Accepted Answer

A) The number of people retiring every year has steadily declined since 1950. 
B) There are no trust funds and the proceeds from the social security taxes are used to purchase Treasury bonds. 
C) The number of people joining the workforce is increasing over time. 
D) The social security taxes has been increased by the government since 1990. 
E) The retirees receive much less than the amount paid by the current workers under the pay-as-you go system. 
A) The number of people retiring every year has steadily declined since 1950. 
B) There are no trust funds and the proceeds from the social security taxes are used to purchase Treasury bonds. 
C) The number of people joining the workforce is increasing over time. 
D) The social security taxes has been increased by the government since 1990. 
E) The retirees receive much less than the amount paid by the current workers under the pay-as-you go system.

Question 19

Empirical evidence suggests that the aging of the population stimulates the demand for health care.In the light of this observation, identify the correct statement.

Accepted Answer

A) The aged population accounts for around eleven percent of hospital expenditures. 
B) Per capita spending on personal health care for those 85 years of age or over is less than that for people of 60-65 years. 
C) The per capita consumption of nursing home care by people between 60-65 years is twice that of people of age 85 years or more. 
D) About sixty percent of the expenditure on nursing home care are for people aged between 30 and 40 years. 
E) About ninety percent of the expenditure on nursing home care are for people aged 65 years or over. 
A) The aged population accounts for around eleven percent of hospital expenditures. 
B) Per capita spending on personal health care for those 85 years of age or over is less than that for people of 60-65 years. 
C) The per capita consumption of nursing home care by people between 60-65 years is twice that of people of age 85 years or more. 
D) About sixty percent of the expenditure on nursing home care are for people aged between 30 and 40 years. 
E) About ninety percent of the expenditure on nursing home care are for people aged 65 years or over.

Question 20

One of the major impacts of the aging of the population is:

Accepted Answer

A) increase in the production of necessary goods in the economy. 
B) increase in government revenue generation. 
C) increase in the expenditure on health care. 
D) addition to the labor force. 
E) decrease in transfer payments made by the government. 
A) increase in the production of necessary goods in the economy. 
B) increase in government revenue generation. 
C) increase in the expenditure on health care. 
D) addition to the labor force. 
E) decrease in transfer payments made by the government.

Exam 53: Aging, Social Security and Health Care

The American Medical Association helps increase:

The American Medical Association encourages the young physicians to advertise to attract more patients.

The figure below shows the demand (AD)and supply (SS1)curves of medical care. Figure 32.4 In Figure 32.4, which of the following regions on the graph represents those people who are not willing and able to pay the price P1 for availing medical care?

Demand for medical care remaining constant, if the supply of medical care is decreased, the price of medical care increases.

Privatization of the social security system would lead to which of the following adverse outcomes?

Which of the following is the most controversial proposal suggested for making the system of social security more efficient?

The demand for unskilled workers is highly price elastic.This means that a tax imposed partly on unskilled workers and partly on their employers:

Government programs like Medicaid and Medicare have been created as per the belief that everyone has an inalienable right to medical care.

Which of the following facts is true of medicare?

One proposal for solving the social security problem is privatization.This means:

The following figure shows the demand (D)and supply (S)curves of human organs Figure 32.5 In Figure 32.5, if the price for human organs falls to P3:

It has been pointed out that there is a unidirectional flow of human organs- from poor to rich, from the Third World to the First World.

Which of the following is a joint federal and state health program that pays for the health care of poor families and disabled?

If a futures market for human organs can be developed, everyone would tend to volunteer to donate organs as they would receive some income for almost no cost.

Which of the following acts specifies the tax contributions of the employer and the employee for the social security program in the U.S.?

Physicians' fees have risen rapidly in the face of an expanding supply of physicians in the last two decades.Which of the following reasons best explains this phenomenon?

Which of the following factors are responsible for the growth of older population in the developed countries?

One of the myths about social security is that the government runs a surplus in the Social Security Trust Fund.Which of the following debunks this myth?

Empirical evidence suggests that the aging of the population stimulates the demand for health care.In the light of this observation, identify the correct statement.

One of the major impacts of the aging of the population is:

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

Filters

The figure below shows the demand (AD)and supply (SS₁)curves of medical care. Figure 32.4 In Figure 32.4, which of the following regions on the graph represents those people who are not willing and able to pay the price P₁ for availing medical care?

The following figure shows the demand (D)and supply (S)curves of human organs Figure 32.5 In Figure 32.5, if the price for human organs falls to P₃: