Question 1

Roughly what portion of U.S.total health spending is paid for by private and public insurance?

Accepted Answer

A)   One-tenth.
B)   One-fourth.
C)   Four-fifths.
D)   One-half.E) B) and D)
F) B) and C)

Question 2

Approximately how many millions of Americans do not have health insurance (prior to gaining coverage through the Patient Protection and Affordable Care Act) ?

Accepted Answer

A)   27.
B)   49.
C)   58.
D)   63.E) All of the above
F) A) and C)

Question 3

In 2011,some 49 million Americans did not have health insurance.

Accepted Answer

A) True 
 B)False

Question 4

Approximately how many workers are employed in the U.S.health care industry?

Accepted Answer

A)   850,000.
B)   925,000.
C)   5.8 million.
D)   17 million.E) C) and D)
F) All of the above

Question 5

Which of the following persons is most likely to be insured for health care?

Accepted Answer

A)   A minimum-wage teenager working for a fast-food restaurant.
B)   A skilled worker employed by a large multinational corporation.
C)   An unemployed retail clerk.
D)   A part-time groundskeeper for a small manufacturing plant.E) A) and C)
F) A) and D)

Question 6

Preferred provider organizations (PPOs)are a type of managed-care organization.

Accepted Answer

A) True 
 B)False

Question 7

There is a consensus among economists that the amount of resources allocated to the health care industry is optimal.

Accepted Answer

A) True 
 B)False

Question 8

It is generally agreed that in the long run the cost of private health insurance provided by employers is:

Accepted Answer

A)   at the expense of business profits.
B)   at the expense of real wages.
C)   paid by taxpayers through government.
D)   included as taxable income for income tax purposes.E) A) and B)
F) C) and D) B

Question 9

Rising health care costs have prompted workers to change jobs with greater frequency.

Accepted Answer

A) True 
 B)False  False

Question 10

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) All of the above
F) A) and D) B

Question 11

Subsidies for those required to purchase health insurance under the personal mandate provision of the PPACA are:

Accepted Answer

A)   limited to those whose income is less than 133 percent of the federal poverty line.
B)   limited to those whose income is at or below the federal poverty line.
C)   provided to some individuals in the upper half of the income distribution.
D)   a fixed amount per person for those eligible to receive the subsidies.E) B) and C)
F) A) and D)

Question 12

The health care market is characterized by:

Accepted Answer

A)   extensive negative externalities.
B)   significant positive externalities.
C)   perfect knowledge by both buyers and sellers.
D)   a perfectly inelastic demand.E) None of the above
F) B) and C)

Question 13

Other things equal,and given that the elasticity of demand for health care is 0.2,a 10 percent increase in the price of health care in the United States will reduce the quantity of health care demanded by about:

Accepted Answer

A)   1 percent.
B)   2 percent.
C)   5 percent.
D)   20 percent.E) A) and B)
F) A) and C)

Question 14

Employer-provided private health insurance in the United States has resulted in:

Accepted Answer

A)   incentives that encourage the overuse of health care.
B)   incentives that discourage the use of health care,and overall poorer health.
C)   lower costs of health care as providers better achieve economies of scale.
D)   comprehensive coverage of the U.S.population,with few lacking access to adequate health care.E) B) and D)
F) B) and C)

Question 15

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) B) and D)
F) All of the above

Question 16

Health care costs in the United States have risen absolutely but remained constant as a percentage of gross domestic product.

Accepted Answer

A) True 
 B)False

Question 17

All of the following are designed to reduce health care expenses for consumers except:

Accepted Answer

A)   HMOs.
B)   PPOs.
C)   the DRG payment system.
D)   the fee-for-service system.E) All of the above
F) A) and C)

Question 18

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) B) and D)
F) A) and C)

Question 19

In industrially advanced countries,estimates suggest the income elasticity of demand for health care is about:

Accepted Answer

A)   +3.
B)   +6.
C)  -2.
D)   +1.E) None of the above
F) B) and C)

Question 20

Suppose you go to a doctor,but your health insurance plan reimburses you for only 80 percent of the bill.This is an example of:

Accepted Answer

A)   a copayment.
B)   a deductible.
C)   monopsony power.
D)   a deferred benefit plan.E) C) and D)
F) A) and D)

Exam 23: Health Care

Roughly what portion of U.S.total health spending is paid for by private and public insurance?

Correct AnswerverifiedShow Answer

Approximately how many millions of Americans do not have health insurance (prior to gaining coverage through the Patient Protection and Affordable Care Act) ?

Correct AnswerverifiedShow Answer

In 2011,some 49 million Americans did not have health insurance.

Correct AnswerverifiedShow Answer

Approximately how many workers are employed in the U.S.health care industry?

Correct AnswerverifiedShow Answer

Which of the following persons is most likely to be insured for health care?

Correct AnswerverifiedShow Answer

Preferred provider organizations (PPOs)are a type of managed-care organization.

Correct AnswerverifiedShow Answer

There is a consensus among economists that the amount of resources allocated to the health care industry is optimal.

Correct AnswerverifiedShow Answer

It is generally agreed that in the long run the cost of private health insurance provided by employers is:

Correct AnswerverifiedB

Rising health care costs have prompted workers to change jobs with greater frequency.

Correct AnswerverifiedFalse

The problem of asymmetric information is that:

Correct AnswerverifiedB

Subsidies for those required to purchase health insurance under the personal mandate provision of the PPACA are:

Correct AnswerverifiedShow Answer

The health care market is characterized by:

Correct AnswerverifiedShow Answer

Other things equal,and given that the elasticity of demand for health care is 0.2,a 10 percent increase in the price of health care in the United States will reduce the quantity of health care demanded by about:

Correct AnswerverifiedShow Answer

Employer-provided private health insurance in the United States has resulted in:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Health care costs in the United States have risen absolutely but remained constant as a percentage of gross domestic product.

Correct AnswerverifiedShow Answer

All of the following are designed to reduce health care expenses for consumers except:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In industrially advanced countries,estimates suggest the income elasticity of demand for health care is about:

Correct AnswerverifiedShow Answer

Suppose you go to a doctor,but your health insurance plan reimburses you for only 80 percent of the bill.This is an example of:

Correct AnswerverifiedShow Answer

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False

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B

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