Question 1

The recently enacted health care reform package (the Patient Protection and Affordable Care Act) focuses solely on controlling health care costs.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following financed the largest share of health care spending in the U.S.in 2014?

Accepted Answer

A)  Medicare
B)  Medicaid
C)  copayments and deductions paid by patients
D)  military and other public insurance (excl.Medicare and Medicaid) E) None of the above
F) A) and B)

Question 3

One major factor contributing to rising health care costs is

Accepted Answer

A)  the increased use of expensive outpatient facilities.
B)  reduced insurance coverage of new medical illnesses.
C)  payments for medical services given to immigrants.
D)  the lack of patients' concern regarding cost of treatments.E) A) and B)
F) C) and D)

Question 4

Those without any health insurance in the U.S.tend to be the following groups, except

Accepted Answer

A)  those who are in excellent health and those with the poorest health.
B)  workers in small firms.
C)  minimum-wage workers.
D)  those receiving Social Security payments.E) A) and D)
F) A) and C)

Question 5

Which of the following is a demand-increasing factor in the health care market?

Accepted Answer

A)  rising incomes
B)  the aging of the population
C)  asymmetric information
D)  all of theseE) B) and C)
F) B) and D)

Question 6

The health care industry includes the manufacture and sale of low-fat food.

Accepted Answer

A) True 
 B)False

Question 7

Based on the available elasticity evidence, health care

Accepted Answer

A)  is an inferior good.
B)  is a normal good.
C)  is highly elastic with respect to price.
D)  has a price elasticity of demand of 1.E) A) and D)
F) A) and C)

Question 8

The problem of asymmetric information is that

Accepted Answer

A)  neither health care buyers nor providers are well-informed.
B)  health care providers are well-informed, but buyers are not.
C)  the outcomes of many complex medical procedures cannot be predicted.
D)  insurance companies are well-informed, but policy purchasers are not.E) A) and B)
F) All of the above B

Question 9

Reasons for the rapid rise in demand for health care despite steeply rising prices include the following, except

Accepted Answer

A)  people regarding health care as an entitlement or a right.
B)  imperfect information among consumers of health care.
C)  third-party insurance payments shielding consumers from the true cost of health care.
D)  high income-elasticity of the demand for health care services.E) A) and B)
F) All of the above

Question 10

If the existence of health insurance increases one's incentive to use the health care system more intensively, this is an illustration of

Accepted Answer

A)  the adverse selection problem.
B)  the moral hazard problem.
C)  the benefits-received principle.
D)  the Coase theorem.E) A) and B)
F) All of the above B

Question 11

The percentage of cost that an insured individual pays while the insurer pays the remainder would be considered

Accepted Answer

A)  copayments
B)  deductibles.
C)  play-or-pay.
D)  fee for service.E) A) and B)
F) All of the above

Question 12

Health care spending was about what percentage of U.S.GDP in 2014?

Accepted Answer

A)  45 percent
B)  32 percent
C)  18 percent
D)  8 percentE) None of the above
F) C) and D)

Question 13

The perceived central economic problem associated with the U.S.health care system is

Accepted Answer

A)  too many frivolous malpractice lawsuits.
B)  an overabundance of scanning machines.
C)  an overallocation of resources to the system.
D)  that workers lose their insurance when they lose their jobs.E) None of the above
F) A) and B)

Question 14

The employer mandate of the PPACA requires that

Accepted Answer

A)  every firm must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
B)  every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
C)  every firm with fewer than 50 full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
D)  every firm with 500 or more employees must establish their own on-site medical facilities to provide employees with basic medical care.E) B) and C)
F) A) and D) B

Question 15

Which of the following would increase the supply of health care services?

Accepted Answer

A)  increased practice of defensive medicine
B)  more tax subsidies for consumers
C)  increases in physicians' productivity
D)  increases in health insurance coverageE) None of the above
F) All of the above

Question 16

One of the provisions of the PPACA is a personal mandate that all individuals

Accepted Answer

A)  pay a $1,000 deductible and 20 percent co-pay on all medical care except annual check-ups or preventative care.
B)  contribute at least 30 percent of the total cost of employer-provided health insurance.
C)  purchase health insurance for themselves and their dependents unless they are already covered by government or employer-provided insurance.
D)  with preexisting conditions must purchase a specially designated government insurance plan.E) None of the above
F) A) and B)

Question 17

Which of the following statements is true about health care costs in the United States?

Accepted Answer

A)  Costs have risen because increases in the price of health care have more than offset reductions in the quantity of health care provided.
B)  Costs have risen because increases in the quantity of care provided have more than offset price reductions realized through economies of scale.
C)  Costs have risen because both the price of health care and the quantity provided have risen.
D)  Costs have remained relatively stable as price increases have been largely offset by reductions in the quantity provided.E) C) and D)
F) A) and D)

Question 18

Some employers have reacted to rising health care costs by hiring more part-time and temporary workers.

Accepted Answer

A) True 
 B)False

Question 19

Sam decides to join the Gigantic State University's rugby team when he learns that his health insurance will pay for any subsequent injury.This illustrates

Accepted Answer

A)  the diagnosis-related-group system.
B)  a "pay or play" system.
C)  the moral hazard problem.
D)  the Coase theorem.E) A) and B)
F) A) and C)

Question 20

Raising the deductibles and copayments is a way of dealing with the

Accepted Answer

A)  adverse selection problem of health insurance
B)  moral hazard problem of health insurance.
C)  asymmetric information between doctors and patients.
D)  externalities of health care.Difficulty: 02 MediumE) A) and B)
F) A) and C)

Exam 24: Health Care

The recently enacted health care reform package (the Patient Protection and Affordable Care Act) focuses solely on controlling health care costs.

Correct AnswerverifiedShow Answer

Which of the following financed the largest share of health care spending in the U.S.in 2014?

Correct AnswerverifiedShow Answer

One major factor contributing to rising health care costs is

Correct AnswerverifiedShow Answer

Those without any health insurance in the U.S.tend to be the following groups, except

Correct AnswerverifiedShow Answer

Which of the following is a demand-increasing factor in the health care market?

Correct AnswerverifiedShow Answer

The health care industry includes the manufacture and sale of low-fat food.

Correct AnswerverifiedShow Answer

Based on the available elasticity evidence, health care

Correct AnswerverifiedShow Answer

The problem of asymmetric information is that

Correct AnswerverifiedB

Reasons for the rapid rise in demand for health care despite steeply rising prices include the following, except

Correct AnswerverifiedShow Answer

If the existence of health insurance increases one's incentive to use the health care system more intensively, this is an illustration of

Correct AnswerverifiedB

The percentage of cost that an insured individual pays while the insurer pays the remainder would be considered

Correct AnswerverifiedShow Answer

Health care spending was about what percentage of U.S.GDP in 2014?

Correct AnswerverifiedShow Answer

The perceived central economic problem associated with the U.S.health care system is

Correct AnswerverifiedShow Answer

The employer mandate of the PPACA requires that

Correct AnswerverifiedB

Which of the following would increase the supply of health care services?

Correct AnswerverifiedShow Answer

One of the provisions of the PPACA is a personal mandate that all individuals

Correct AnswerverifiedShow Answer

Which of the following statements is true about health care costs in the United States?

Correct AnswerverifiedShow Answer

Some employers have reacted to rising health care costs by hiring more part-time and temporary workers.

Correct AnswerverifiedShow Answer

Sam decides to join the Gigantic State University's rugby team when he learns that his health insurance will pay for any subsequent injury.This illustrates

Correct AnswerverifiedShow Answer

Raising the deductibles and copayments is a way of dealing with the

Correct AnswerverifiedShow Answer

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B

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B

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B

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