Question 1

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,

Accepted Answer

A) they demand a larger quantity of health care services than they would if they paid a price that better represented the true cost of providing the service. 
B) they demand a smaller quantity of health care services than they would if they paid a price that better represented the true cost of providing the service. 
C) the doctors supply a smaller quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. 
D) the insurance companies provide a larger quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. 
A) they demand a larger quantity of health care services than they would if they paid a price that better represented the true cost of providing the service. 
B) they demand a smaller quantity of health care services than they would if they paid a price that better represented the true cost of providing the service. 
C) the doctors supply a smaller quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. 
D) the insurance companies provide a larger quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. A

Question 2

The Congressional Budget Office estimates that the payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance account for ________ of health care costs in the United States.

Accepted Answer

A) between 20 and 30 percent 
B) roughly half 
C) less than 1 percent 
D) a vast majority 
A) between 20 and 30 percent 
B) roughly half 
C) less than 1 percent 
D) a vast majority C

Question 3

Briefly describe are the 6 main provisions of the Patient Protection and Affordable Care Act (PPACA)?

Accepted Answer

1.Individual mandate requiring that every resident of the United States have health insurance or be subject to a fine.
2.State health exchanges which offer health insurance policies are required to be established in every state.
3.Employers are mandated to offer health insurance to employees,or in some cases,pay a fee to the federal government for every employee who receives a tax credit for obtaining insurance through a health exchange.
4.Insurance companies will be required to participate in a high-risk pool and must provide health coverage for dependant children up to age 26.Also,lifetime dollar maximums will be prohibited and limits will be placed on deductibles and waiting periods for coverage to take effect.
5.Medicare eligibility will be expanded and some Medicare reimbursements will be reduced.
6.New taxes will be phased in to help fund the program.

Question 4

Suggest three ways by which health insurance companies can reduce adverse selection?

Accepted Answer

Some ways by which insurance companies c

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 which of the following countries are substantial co-payments typically required as a part of the health care system?

Accepted Answer

A) Canada and the United States 
B) Japan and Canada. 
C) the United States and Japan 
D) the United States and the United Kingdom 
A) Canada and the United States 
B) Japan and Canada. 
C) the United States and Japan 
D) the United States and the United Kingdom

Question 7

The health care system in the United Kingdom is referred to as ________,under which the government owns most of the hospitals and employs most of the doctors.

Accepted Answer

A) an out-of-pocket system 
B) a single-payer health care system 
C) a universal health insurance system 
D) socialized medicine 
A) an out-of-pocket system 
B) a single-payer health care system 
C) a universal health insurance system 
D) socialized medicine

Question 8

The rising cost of malpractice insurance is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (PPACA)except

Accepted Answer

A) individuals are allowed to opt out of the insurance program if they can prove they have no serious health issues and do so before the act fully takes effect in the year 2012. 
B) by 2018,fines for not having health insurance will be the greater of $895 per person or 2.5 percent of income. 
C) beginning in 2014,individuals who do not acquire health insurance will be subject to a fine. 
D) with limited exceptions,every resident of the United States will be required to have health insurance that meets certain basic requirements. 
A) individuals are allowed to opt out of the insurance program if they can prove they have no serious health issues and do so before the act fully takes effect in the year 2012. 
B) by 2018,fines for not having health insurance will be the greater of $895 per person or 2.5 percent of income. 
C) beginning in 2014,individuals who do not acquire health insurance will be subject to a fine. 
D) with limited exceptions,every resident of the United States will be required to have health insurance that meets certain basic requirements.

Question 10

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 11

Over the past 160 years in the United States,life expectancy

Accepted Answer

A) has remained fairly constant. 
B) has slightly declined. 
C) has more than doubled. 
D) increased up to the 1950s and then declined for the next 60 years. 
A) has remained fairly constant. 
B) has slightly declined. 
C) has more than doubled. 
D) increased up to the 1950s and then declined for the next 60 years.

Question 12

Most employees ________ pay taxes on the value of health insurance provided by employers,and most people ________ get a tax break when buying individual health insurance policies.

Accepted Answer

A) do;do 
B) do;do not 
C) do not;do 
D) do not;do not 
A) do;do 
B) do;do not 
C) do not;do 
D) do not;do not

Question 13

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

Accepted Answer

A) is a primary cause of price increases. 
B) reduces the incentive to work. 
C) shifts out a country's production possibilities frontier. 
D) increases consumer surplus. 
A) is a primary cause of price increases. 
B) reduces the incentive to work. 
C) shifts out a country's production possibilities frontier. 
D) increases consumer surplus.

Question 14

Vaccinating people against a communicable disease such as influenza not only reduces the chances that the person vaccinated will catch the disease but also reduces the probability that an epidemic of the disease will occur.Which of the following statements is true?

Accepted Answer

A) Reducing the chances that the person vaccinated will catch the disease is a private cost while reducing the probability of an influenza epidemic is a social benefit. 
B) Vaccinating people against communicable diseases yields private benefits in excess of social benefits. 
C) Reducing the chances that the person vaccinated will catch the disease is a private benefit while reducing the probability of an influenza epidemic is a social benefit. 
D) The benefits of the influenza vaccination outweigh the costs. 
A) Reducing the chances that the person vaccinated will catch the disease is a private cost while reducing the probability of an influenza epidemic is a social benefit. 
B) Vaccinating people against communicable diseases yields private benefits in excess of social benefits. 
C) Reducing the chances that the person vaccinated will catch the disease is a private benefit while reducing the probability of an influenza epidemic is a social benefit. 
D) The benefits of the influenza vaccination outweigh the costs.

Question 15

Health insurance companies impose deductibles on policies and co-payments on claims

Accepted Answer

A) to increase sales. 
B) to reduce moral hazard problems. 
C) to reduces sunk costs. 
D) to increase prices. 
A) to increase sales. 
B) to reduce moral hazard problems. 
C) to reduces sunk costs. 
D) to increase prices.

Question 16

The health care system in Japan is referred to as ________,under which every resident of Japan is required to enroll in either a private or the government-provided health insurance program.

Accepted Answer

A) an out-of-pocket system 
B) a single-payer health care system 
C) a universal health insurance system 
D) socialized medicine 
A) an out-of-pocket system 
B) a single-payer health care system 
C) a universal health insurance system 
D) socialized medicine

Question 17

A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services.This would tend to ________ economic efficiency by ________ the costs of medical services

Accepted Answer

A) increase;increasing 
B) increase;decreasing 
C) decrease;increasing 
D) decrease;decreasing 
A) increase;increasing 
B) increase;decreasing 
C) decrease;increasing 
D) decrease;decreasing

Question 18

In the United States from 1981 to 2009,deaths from diabetes increased largely due to the effects of

Accepted Answer

A) foreign-produced insulin. 
B) stress in the workplace. 
C) a larger immigrant population. 
D) increasing obesity. 
A) foreign-produced insulin. 
B) stress in the workplace. 
C) a larger immigrant population. 
D) increasing obesity.

Question 19

Which of the following individuals is most likely to purchase a life insurance policy that pays out an annual income beginning at a certain age until the individual's death?

Accepted Answer

A) Ian,who expects to have a short life expectancy because of an illness 
B) Bradley who has six young children 
C) Avril,a tax attorney who wants to avoid adverse selection 
D) Alma,who expects to live a long life,based on her family history 
A) Ian,who expects to have a short life expectancy because of an illness 
B) Bradley who has six young children 
C) Avril,a tax attorney who wants to avoid adverse selection 
D) Alma,who expects to live a long life,based on her family history

Question 20

A doctor pursuing his own interests rather than the interests of his patients is an example of the principal-agent problem.

Accepted Answer

A) True 
 B)False

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,

The Congressional Budget Office estimates that the payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance account for ________ of health care costs in the United States.

Briefly describe are the 6 main provisions of the Patient Protection and Affordable Care Act (PPACA)?

Suggest three ways by which health insurance companies can reduce adverse selection?

In markets with asymmetric information,

In which of the following countries are substantial co-payments typically required as a part of the health care system?

The health care system in the United Kingdom is referred to as ________,under which the government owns most of the hospitals and employs most of the doctors.

The rising cost of malpractice insurance is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

All of the following are part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (PPACA)except

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

Over the past 160 years in the United States,life expectancy

Most employees pay taxes on the value of health insurance provided by employers,and most people get a tax break when buying individual health insurance policies.

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

Vaccinating people against a communicable disease such as influenza not only reduces the chances that the person vaccinated will catch the disease but also reduces the probability that an epidemic of the disease will occur.Which of the following statements is true?

Health insurance companies impose deductibles on policies and co-payments on claims

The health care system in Japan is referred to as ________,under which every resident of Japan is required to enroll in either a private or the government-provided health insurance program.

A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services.This would tend to economic efficiency by the costs of medical services

In the United States from 1981 to 2009,deaths from diabetes increased largely due to the effects of

Which of the following individuals is most likely to purchase a life insurance policy that pays out an annual income beginning at a certain age until the individual's death?

A doctor pursuing his own interests rather than the interests of his patients is an example of the principal-agent problem.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage,international Trade,and Exchange Rates

Filters

Exam 5: The Economics of Health Care

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,

The Congressional Budget Office estimates that the payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance account for ________ of health care costs in the United States.

Briefly describe are the 6 main provisions of the Patient Protection and Affordable Care Act (PPACA)?

Suggest three ways by which health insurance companies can reduce adverse selection?

In markets with asymmetric information,

In which of the following countries are substantial co-payments typically required as a part of the health care system?

The health care system in the United Kingdom is referred to as ________,under which the government owns most of the hospitals and employs most of the doctors.

The rising cost of malpractice insurance is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

All of the following are part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (PPACA)except

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

Over the past 160 years in the United States,life expectancy

Most employees ________ pay taxes on the value of health insurance provided by employers,and most people ________ get a tax break when buying individual health insurance policies.

Better health allows people to work harder,which raises a country's total income.This indicates that in effect,better health

Vaccinating people against a communicable disease such as influenza not only reduces the chances that the person vaccinated will catch the disease but also reduces the probability that an epidemic of the disease will occur.Which of the following statements is true?

Health insurance companies impose deductibles on policies and co-payments on claims

The health care system in Japan is referred to as ________,under which every resident of Japan is required to enroll in either a private or the government-provided health insurance program.

A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services.This would tend to ________ economic efficiency by ________ the costs of medical services

In the United States from 1981 to 2009,deaths from diabetes increased largely due to the effects of

Which of the following individuals is most likely to purchase a life insurance policy that pays out an annual income beginning at a certain age until the individual's death?

A doctor pursuing his own interests rather than the interests of his patients is an example of the principal-agent problem.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage,international Trade,and Exchange Rates

Filters

Most employees pay taxes on the value of health insurance provided by employers,and most people get a tax break when buying individual health insurance policies.

A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services.This would tend to economic efficiency by the costs of medical services