Question 1

Vaccinations tend to result in a negative externality.

Accepted Answer

A) True 
 B)False  False

Question 2

In a market with positive externalities,the market equilibrium price will be greater than the efficient equilibrium price.

Accepted Answer

A) True 
 B)False  False

Question 3

Figure 5-1   Figure 5-1 represents the market for vaccinations.Vaccinations are considered a benefit to society,and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-1.The efficient equilibrium quantity is ________ thousand vaccinations.

Accepted Answer

A) 200 
B) 400 
C) 600 
D) > 600 
A) 200 
B) 400 
C) 600 
D) > 600 C

Question 4

In the market for insurance,

Accepted Answer

A) buyers often have more information than sellers. 
B) sellers often have better information than buyers. 
C) sellers are protected from lawsuits brought by buyers. 
D) demand is perfectly inelastic because,by law,home owners and automobile drivers must have insurance. 
A) buyers often have more information than sellers. 
B) sellers often have better information than buyers. 
C) sellers are protected from lawsuits brought by buyers. 
D) demand is perfectly inelastic because,by law,home owners and automobile drivers must have insurance.

Question 5

The individual mandate provision of the ACA requires

Accepted Answer

A) every U.S.resident to have health insurance. 
B) every U.S.company to provide health insurance to its employees. 
C) every employed person to pay for his or her own health insurance. 
D) every private insurance company to provide free health care to its current policy holders. 
A) every U.S.resident to have health insurance. 
B) every U.S.company to provide health insurance to its employees. 
C) every employed person to pay for his or her own health insurance. 
D) every private insurance company to provide free health care to its current policy holders.

Question 6

The study of the problems due to asymmetric information was begun when economists analyzed which type of market?

Accepted Answer

A) the market for citrus fruit 
B) the market for insurance 
C) farmers' markets 
D) the market for automobiles 
A) the market for citrus fruit 
B) the market for insurance 
C) farmers' markets 
D) the market for automobiles

Question 7

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will

Accepted Answer

A) generate additional moral hazard. 
B) create negative externalities. 
C) reduce asymmetric information. 
D) generate more adverse selection. 
A) generate additional moral hazard. 
B) create negative externalities. 
C) reduce asymmetric information. 
D) generate more adverse selection.

Question 8

What is asymmetric information?

Accepted Answer

Asymmetric information occurs

Question 9

Of the following high-income countries,which has the highest female life expectancy at age 65?

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 10

In the principal-agent relationship,the principal is

Accepted Answer

A) the owner of a resource that has hired a third party to act in the best interest of that third party. 
B) the person who is placed in control over resources that are not his own,with a contractual obligation to use these resources in the interests of some other party. 
C) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. 
D) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf. 
A) the owner of a resource that has hired a third party to act in the best interest of that third party. 
B) the person who is placed in control over resources that are not his own,with a contractual obligation to use these resources in the interests of some other party. 
C) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. 
D) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.

Question 11

Changes in the health of the average person are relatively unimportant as an indicator of changes in the standard of living.

Accepted Answer

A) True 
 B)False

Question 12

In which of the following countries does health insurance not pay for most preventive care procedures?

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 13

On average,people in the United States spend a smaller percentage of their income on health care than do people in most other countries.

Accepted Answer

A) True 
 B)False

Question 14

Briefly describe the types of health care systems in Canada,Japan,and the United Kingdom.

Accepted Answer

Canada has a single-payer health care sy

Question 15

Figure 5-3   Figure 5-3 represents the market for medical services with and without insurance,and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 5-3.With insurance and a third-party payer system,what price do doctors receive for medical services?

Accepted Answer

A) $40 
B) $55 
C) $65 
D) > $65 
A) $40 
B) $55 
C) $65 
D) > $65

Question 16

Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)?

Accepted Answer

A) Pharmaceutical firms and health insurance firms pay new taxes. 
B) Investors earning more than $200,000 pay a new tax on their investment income. 
C) Beginning in 2018,all taxes on employer-provided health insurance plans will be reduced or eliminated. 
D) Workers earning more than $200,000 pay higher Medicare payroll taxes. 
A) Pharmaceutical firms and health insurance firms pay new taxes. 
B) Investors earning more than $200,000 pay a new tax on their investment income. 
C) Beginning in 2018,all taxes on employer-provided health insurance plans will be reduced or eliminated. 
D) Workers earning more than $200,000 pay higher Medicare payroll taxes.

Question 17

In the United States in 2014,the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about

Accepted Answer

A) 2%. 
B) 29%. 
C) 44%. 
D) 98%. 
A) 2%. 
B) 29%. 
C) 44%. 
D) 98%.

Question 18

About ________ of research on new medicines is carried out in the United States.

Accepted Answer

A) 10 percent 
B) one-half 
C) two-thirds 
D) 90 percent 
A) 10 percent 
B) one-half 
C) two-thirds 
D) 90 percent

Question 19

Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as

Accepted Answer

A) bad faith. 
B) economic inefficiency. 
C) moral hazard. 
D) market failure. 
A) bad faith. 
B) economic inefficiency. 
C) moral hazard. 
D) market failure.

Question 20

Figure 5-1   Figure 5-1 represents the market for vaccinations.Vaccinations are considered a benefit to society,and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-1.Marginal social benefit is represented by which curve?

Accepted Answer

A) D1 
B) D2 
C) Supply 
D) All of the above represent marginal social benefit. 
A) D1 
B) D2 
C) Supply 
D) All of the above represent marginal social benefit.

Vaccinations tend to result in a negative externality.

In a market with positive externalities,the market equilibrium price will be greater than the efficient equilibrium price.

In the market for insurance,

The individual mandate provision of the ACA requires

The study of the problems due to asymmetric information was begun when economists analyzed which type of market?

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will

What is asymmetric information?

Of the following high-income countries,which has the highest female life expectancy at age 65?

In the principal-agent relationship,the principal is

Changes in the health of the average person are relatively unimportant as an indicator of changes in the standard of living.

In which of the following countries does health insurance not pay for most preventive care procedures?

On average,people in the United States spend a smaller percentage of their income on health care than do people in most other countries.

Briefly describe the types of health care systems in Canada,Japan,and the United Kingdom.

Figure 5-3 Figure 5-3 represents the market for medical services with and without insurance,and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 5-3.With insurance and a third-party payer system,what price do doctors receive for medical services?

Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)?

In the United States in 2014,the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about

About ________ of research on new medicines is carried out in the United States.

Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as

Figure 5-1 Figure 5-1 represents the market for vaccinations.Vaccinations are considered a benefit to society,and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 5-1.Marginal social benefit is represented by which curve?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 5: The Economics of Health Care

Vaccinations tend to result in a negative externality.

In a market with positive externalities,the market equilibrium price will be greater than the efficient equilibrium price.

In the market for insurance,

The individual mandate provision of the ACA requires

The study of the problems due to asymmetric information was begun when economists analyzed which type of market?

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will

What is asymmetric information?

Of the following high-income countries,which has the highest female life expectancy at age 65?

In the principal-agent relationship,the principal is

Changes in the health of the average person are relatively unimportant as an indicator of changes in the standard of living.

In which of the following countries does health insurance not pay for most preventive care procedures?

On average,people in the United States spend a smaller percentage of their income on health care than do people in most other countries.

Briefly describe the types of health care systems in Canada,Japan,and the United Kingdom.

Figure 5-3 Figure 5-3 represents the market for medical services with and without insurance,and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 5-3.With insurance and a third-party payer system,what price do doctors receive for medical services?

Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)?

In the United States in 2014,the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about

About ________ of research on new medicines is carried out in the United States.

Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as

Figure 5-1 Figure 5-1 represents the market for vaccinations.Vaccinations are considered a benefit to society,and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 5-1.Marginal social benefit is represented by which curve?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters