Question 1

The demand curve for medical care is positively sloped.Thus irrespective of the high price of medical care its demand is always high.

Accepted Answer

A) True 
 B)False  False

Question 2

The ratio of workers to social security beneficiaries has declined from 16.5 in 1950 to about 3 in 2010 and is expected to decline to 2 by 2030.This trend indicates that:

Accepted Answer

A) the surplus generated from the social security fund is going to increase over time. 
B) the revenue generated by the government from the social taxes is going to decline by 2030. 
C) the strength of the U.S.labor force will shrink over time. 
D) the social security contributions will fall short of the social security payments over time. 
E) the number of retirees will gradually decline and the youth employment in the economy will increase. 
A) the surplus generated from the social security fund is going to increase over time. 
B) the revenue generated by the government from the social taxes is going to decline by 2030. 
C) the strength of the U.S.labor force will shrink over time. 
D) the social security contributions will fall short of the social security payments over time. 
E) the number of retirees will gradually decline and the youth employment in the economy will increase. C

Question 3

Which of the following can increase the price of medical care even if the demand for medical care remains constant?

Accepted Answer

A) Decrease in the cost of medical care 
B) Availability of high end technology in modern medical care 
C) Increase in the cost of medical care 
D) General improvement in the standard of living 
E) An increase in preference for herbal medicines among people 
A) Decrease in the cost of medical care 
B) Availability of high end technology in modern medical care 
C) Increase in the cost of medical care 
D) General improvement in the standard of living 
E) An increase in preference for herbal medicines among people C

Question 4

The figure below shows the demand (AD)and supply (SS1)curves of medical care. Figure 18.4   Refer to Figure 18.4.If the third-party system now induces those people to avail medical care who were earlier not willing to avail it, the demand curve AD would:

Accepted Answer

A) shift inward. 
B) become perfectly elastic. 
C) become vertical. 
D) remain unchanged. 
E) shift outward. 
A) shift inward. 
B) become perfectly elastic. 
C) become vertical. 
D) remain unchanged. 
E) shift outward.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

If the ratio of those working to those retired increases it implies that "The World is Aging."

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

Which of the following provides the best description of the Social Security System in the United States?

Accepted Answer

A) A trust fund into which every American citizen has voluntarily paid a certain amount of money each year 
B) Funds that were deposited in a trust fund and allowed to accumulate interest-free for use in future years 
C) Funds that were deposited in a trust fund and allowed to accumulate at market rates of interest for general use in future years 
D) Funds that were deposited in a trust fund and allowed to accumulate at market rates of interest for the use in future years only by the individuals who voluntarily deposited the funds 
E) A transfer payment that taxes the working population today and pays benefits for current retirees from the proceeds of that tax. 
A) A trust fund into which every American citizen has voluntarily paid a certain amount of money each year 
B) Funds that were deposited in a trust fund and allowed to accumulate interest-free for use in future years 
C) Funds that were deposited in a trust fund and allowed to accumulate at market rates of interest for general use in future years 
D) Funds that were deposited in a trust fund and allowed to accumulate at market rates of interest for the use in future years only by the individuals who voluntarily deposited the funds 
E) A transfer payment that taxes the working population today and pays benefits for current retirees from the proceeds of that tax.

Question 11

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 12

Many doctors, lawyers, and economists opine that an existence of a legal market for human organs will help cure their chronic shortage that is gripping transplant medicine.

Accepted Answer

A) True 
 B)False

Question 13

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 14

The following figure shows the demand (D)and supply (S)curves of human organs Figure 18.5   In Figure 18.5, 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 15

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 16

The social security tax proceeds are often used to purchase government bonds.

Accepted Answer

A) True 
 B)False

Question 17

The bulk of the cost of hospital care is borne by third-parties.Such third-parties are:

Accepted Answer

A) relatives and friends. 
B) financial institutions. 
C) insurance companies. 
D) voluntary organizations. 
E) employers. 
A) relatives and friends. 
B) financial institutions. 
C) insurance companies. 
D) voluntary organizations. 
E) employers.

Question 18

As three-quarters of the world's population resides in the developing countries, these areas contain around 80 percent of the world's elderly population.

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

A physician who prescribes unnecessary tests to her patients is most likely defending:

Accepted Answer

A) his patients against chronic diseases. 
B) the reputation of all physicians. 
C) the general health of the community. 
D) the hospital's reputation and goodwill. 
E) himself or herself against the possibility of a malpractice suit. 
A) his patients against chronic diseases. 
B) the reputation of all physicians. 
C) the general health of the community. 
D) the hospital's reputation and goodwill. 
E) himself or herself against the possibility of a malpractice suit.

Exam 31: Aging, Social Security and Health Care

The demand curve for medical care is positively sloped.Thus irrespective of the high price of medical care its demand is always high.

The ratio of workers to social security beneficiaries has declined from 16.5 in 1950 to about 3 in 2010 and is expected to decline to 2 by 2030.This trend indicates that:

Which of the following can increase the price of medical care even if the demand for medical care remains constant?

The figure below shows the demand (AD)and supply (SS1)curves of medical care. Figure 18.4 Refer to Figure 18.4.If the third-party system now induces those people to avail medical care who were earlier not willing to avail it, the demand curve AD would:

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

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

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

If the ratio of those working to those retired increases it implies that "The World is Aging."

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

Which of the following provides the best description of the Social Security System in the United States?

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

Many doctors, lawyers, and economists opine that an existence of a legal market for human organs will help cure their chronic shortage that is gripping transplant medicine.

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 18.5 In Figure 18.5, 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.

The social security tax proceeds are often used to purchase government bonds.

The bulk of the cost of hospital care is borne by third-parties.Such third-parties are:

As three-quarters of the world's population resides in the developing countries, these areas contain around 80 percent of the world's elderly population.

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.

A physician who prescribes unnecessary tests to her patients is most likely defending:

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

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

Aging, Social Security and Health Care

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 18.4 Refer to Figure 18.4.If the third-party system now induces those people to avail medical care who were earlier not willing to avail it, the demand curve AD would:

The following figure shows the demand (D)and supply (S)curves of human organs Figure 18.5 In Figure 18.5, if the price for human organs falls to P₃: