Question 1

Of the following high-income countries,which has the highest infant mortality 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 2

Most doctors and hospitals operate as private businesses 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 3

The average height of adult males in the United States

Accepted Answer

A) has steadily increased since the early 1700s. 
B) has remained very constant since the Civil War. 
C) rose significantly beginning in 1830. 
D) declined in the mid-1800s before beginning to rise again around 1890. 
A) has steadily increased since the early 1700s. 
B) has remained very constant since the Civil War. 
C) rose significantly beginning in 1830. 
D) declined in the mid-1800s before beginning to rise again around 1890.

Question 4

The Pre-Existing Condition Insurance Plan is a federally administered part of the Affordable Care Act,and is designed for people with pre-existing medical conditions to obtain insurance.By offering health insurance to all U.S.citizens with pre-existing medical conditions,the Pre-Existing Condition Insurance Plan eliminates ________ for both the insurer and the insured,and eliminates ________ for the issuer of the insurance policy.

Accepted Answer

A) the principal-agent problem;moral hazard 
B) asymmetric information;adverse selection 
C) adverse selection;the principal-agent problem 
D) moral hazard;adverse selection 
A) the principal-agent problem;moral hazard 
B) asymmetric information;adverse selection 
C) adverse selection;the principal-agent problem 
D) moral hazard;adverse selection

Question 5

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

Accepted Answer

An externality is a benefit or cost that

Question 6

In the United States,consumers usually pay ________ than the true cost of medical treatment because of ________.

Accepted Answer

A) more;adverse selection 
B) more;rising insurance premiums 
C) less;third-party payers 
D) less;rising insurance deductibles 
A) more;adverse selection 
B) more;rising insurance premiums 
C) less;third-party payers 
D) less;rising insurance deductibles

Question 7

Of the following high-income countries,which has the lowest life expectancy at birth?

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 8

In the United States from 1981 to 2009,deaths from all of the following declined substantially except

Accepted Answer

A) cancer. 
B) kidney disease. 
C) heart attacks. 
D) strokes. 
A) cancer. 
B) kidney disease. 
C) heart attacks. 
D) strokes.

Question 9

Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole.

Accepted Answer

A) approximately equal to 
B) slightly faster than 
C) almost twice as fast as 
D) less than half as fast as 
A) approximately equal to 
B) slightly faster than 
C) almost twice as fast as 
D) less than half as fast as

Question 10

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

Accepted Answer

A person's height partly relies on nutri

Question 11

In the United States in 2009,the percentage of people with private health insurance was about

Accepted Answer

A) 17%. 
B) 29%. 
C) 54%. 
D) 83%. 
A) 17%. 
B) 29%. 
C) 54%. 
D) 83%.

Question 12

On average,people in high-income countries ________ than people in low-income countries.

Accepted Answer

A) have a shorter life expectancy 
B) are subject to a higher infant mortality rate 
C) are taller 
D) are exposed to more severe diseases 
A) have a shorter life expectancy 
B) are subject to a higher infant mortality rate 
C) are taller 
D) are exposed to more severe diseases

Question 13

Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending.Such changes would make it more likely that

Accepted Answer

A) consumers would pay prices closer to the actual costs for routine medical care. 
B) employers would provide more generous medical coverage to their employees. 
C) insurance deductibles would decrease. 
D) the quantity of medical services demanded would increase. 
A) consumers would pay prices closer to the actual costs for routine medical care. 
B) employers would provide more generous medical coverage to their employees. 
C) insurance deductibles would decrease. 
D) the quantity of medical services demanded would increase.

Question 14

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) employers have more incentive to allow employees time off for doctor visits. 
B) doctors have less incentive to control their costs. 
C) insurance companies have more incentive to approve medical procedures for their policy holders. 
D) consumers have less incentive to visit the doctor's office on a more frequent basis. 
A) employers have more incentive to allow employees time off for doctor visits. 
B) doctors have less incentive to control their costs. 
C) insurance companies have more incentive to approve medical procedures for their policy holders. 
D) consumers have less incentive to visit the doctor's office on a more frequent basis.

Question 15

A key difficulty facing insurance companies is that people know more about their health than do insurance companies,and that those people who are seriously ill are the most likely to want to obtain health insurance.What is this phenomenon called?

Accepted Answer

A) moral hazard 
B) economic irrationality 
C) asymmetric information 
D) adverse selection 
A) moral hazard 
B) economic irrationality 
C) asymmetric information 
D) adverse selection

Question 16

How do current tax laws in the United States favor employer-based health care insurance?

Accepted Answer

A) Individuals who receive health insurance benefits are allowed to deduct the value of these benefits from their taxable income. 
B) Employers who provide health insurance benefits are reimbursed by the government and are not taxed on these reimbursements. 
C) Individuals who receive health insurance benefits do not pay taxes on the value of these benefits. 
D) Health insurance companies that provide insurance to employers are subject to a lower tax rate than those insurance companies that provide insurance to private individuals. 
A) Individuals who receive health insurance benefits are allowed to deduct the value of these benefits from their taxable income. 
B) Employers who provide health insurance benefits are reimbursed by the government and are not taxed on these reimbursements. 
C) Individuals who receive health insurance benefits do not pay taxes on the value of these benefits. 
D) Health insurance companies that provide insurance to employers are subject to a lower tax rate than those insurance companies that provide insurance to private individuals.

Question 17

"Cost disease" refers to the tendency for low productivity in the service sector to lead to higher costs in those industries.

Accepted Answer

A) True 
 B)False

Question 18

If a buyer in an economic transaction has more information than the seller,the buyer benefits at the expense of the seller.This phenomenon is due to

Accepted Answer

A) moral hazard. 
B) adverse selection. 
C) economically irrational behavior. 
D) gains from trade. 
A) moral hazard. 
B) adverse selection. 
C) economically irrational behavior. 
D) gains from trade.

Question 19

An analysis of the Patient Protection and Affordable Care Act (PPACA)by Medicare officials claims that additional annual health care spending over the next decade under the PPACA will

Accepted Answer

A) more than double. 
B) rise by 10 percent for the first 5 years and then fall by 20 percent for the remaining 5 years. 
C) continually increase until it reaches an annual rate of 25 percent. 
D) increase by less than 1 percent. 
A) more than double. 
B) rise by 10 percent for the first 5 years and then fall by 20 percent for the remaining 5 years. 
C) continually increase until it reaches an annual rate of 25 percent. 
D) increase by less than 1 percent.

Question 20

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that repealing the tax preference for employer-provided health insurance would

Accepted Answer

A) significantly reduce the effectiveness of the health care received by those enrolled in these programs. 
B) increase overall spending on health care as consumers would have to pay a higher price for medical services. 
C) drive up prices for health care coverage since insurance reimbursements to doctors would be reduced. 
D) reduce spending by people enrolled in these programs by 33 percent. 
A) significantly reduce the effectiveness of the health care received by those enrolled in these programs. 
B) increase overall spending on health care as consumers would have to pay a higher price for medical services. 
C) drive up prices for health care coverage since insurance reimbursements to doctors would be reduced. 
D) reduce spending by people enrolled in these programs by 33 percent.

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

Most doctors and hospitals operate as private businesses in all of the following countries except

The average height of adult males in the United States

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

In the United States,consumers usually pay than the true cost of medical treatment because of .

Of the following high-income countries,which has the lowest life expectancy at birth?

In the United States from 1981 to 2009,deaths from all of the following declined substantially except

Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole.

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

In the United States in 2009,the percentage of people with private health insurance was about

On average,people in high-income countries ________ than people in low-income countries.

Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending.Such changes would make it more likely that

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

A key difficulty facing insurance companies is that people know more about their health than do insurance companies,and that those people who are seriously ill are the most likely to want to obtain health insurance.What is this phenomenon called?

How do current tax laws in the United States favor employer-based health care insurance?

"Cost disease" refers to the tendency for low productivity in the service sector to lead to higher costs in those industries.

If a buyer in an economic transaction has more information than the seller,the buyer benefits at the expense of the seller.This phenomenon is due to

An analysis of the Patient Protection and Affordable Care Act (PPACA)by Medicare officials claims that additional annual health care spending over the next decade under the PPACA will

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that repealing the tax preference for employer-provided health insurance would

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

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

Most doctors and hospitals operate as private businesses in all of the following countries except

The average height of adult males in the United States

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

In the United States,consumers usually pay ________ than the true cost of medical treatment because of ________.

Of the following high-income countries,which has the lowest life expectancy at birth?

In the United States from 1981 to 2009,deaths from all of the following declined substantially except

Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole.

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

In the United States in 2009,the percentage of people with private health insurance was about

On average,people in high-income countries ________ than people in low-income countries.

Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending.Such changes would make it more likely that

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

A key difficulty facing insurance companies is that people know more about their health than do insurance companies,and that those people who are seriously ill are the most likely to want to obtain health insurance.What is this phenomenon called?

How do current tax laws in the United States favor employer-based health care insurance?

"Cost disease" refers to the tendency for low productivity in the service sector to lead to higher costs in those industries.

If a buyer in an economic transaction has more information than the seller,the buyer benefits at the expense of the seller.This phenomenon is due to

An analysis of the Patient Protection and Affordable Care Act (PPACA)by Medicare officials claims that additional annual health care spending over the next decade under the PPACA will

Economists John Cogan,R.Glenn Hubbard,and Daniel Kessler have estimated that repealing the tax preference for employer-provided health insurance would

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

In the United States,consumers usually pay than the true cost of medical treatment because of .