Question 1

Which of the following is not one of the new taxes imposed under the PPACA?

Accepted Answer

A)  2.9 percent excise tax on medical devices
B)  10 percent tax on indoor tanning
C)  3.8 percent tax on "junk food"
D)  40 percent tax on employers providing insurance to employees in excess of $10,200 per year for individuals or $27,500 per year for families.E) A) and D)
F) B) and C)

Question 2

The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine.

Accepted Answer

A) True 
 B)False

Question 3

One of the taxes included in the Patient Protection and Affordable Care Act (PPACA) to generate revenue is a tax on junk food.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Employers in the U.S.started offering health insurance as a fringe benefit to their employees during World War II as a way of getting around the wage controls that were in effect then.

Accepted Answer

A) True 
 B)False

Question 6

The main purpose of HMOs and PPOs is to

Accepted Answer

A)  reduce health care costs for employers and their employees.
B)  reduce medical malpractice suits.
C)  enable groups of physicians to increase their fees.
D)  direct patients to specialists rather than to more expensive primary-care physicians.E) B) and D)
F) B) and C)

Question 7

As a percentage of GDP, U.S.health care spending is higher than that of any other major industrial country.

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

Which of the following provisions of the PPACA do proponents expect to reduce the growth of health care spending?

Accepted Answer

A)  prohibiting insurers from dropping or denying individuals with preexisting conditions
B)  allowing individuals to purchase coverage through insurance exchanges
C)  subsidizing purchases of insurance for those complying with the personal mandate
D)  expanding access to Medicaid coverageE) B) and C)
F) A) and B)

Question 10

One major difference between PPOs (preferred providers organizations)  and HMOs (health maintenance organizations)  is that

Accepted Answer

A)  PPOs set rates for various medical services or procedures, while HMOs allow their doctors and clinics to set their own rates.
B)  PPOs seek to reduce health care costs by controlling prices, while HMOs seek to reduce costs by restricting quantity consumed.
C)  HMOs employ their own physicians or contract for specialized services with outside providers, while PPOs have arrangements with a network of providers.
D)  HMOs seek to reduce costs by capping the rates for various services, while PPOs seek to ration health care by having waiting periods.E) None of the above
F) C) and D)

Question 11

Which of the following is a supply factor in the health care market?

Accepted Answer

A)  defensive medicine
B)  the aging of the population
C)  slow productivity growth in the health care industry
D)  asymmetric informationE) B) and C)
F) A) and C)

Question 12

Managed-care organizations attempt to control their enrolled members' use of health care as a way of containing costs.

Accepted Answer

A) True 
 B)False

Question 13

A decrease in the demand for health care would most likely result from

Accepted Answer

A)  newer and more costly medical technology.
B)  more use of defensive medicine.
C)  an aging population.
D)  healthier lifestyles.E) A) and D)
F) None of the above

Question 14

Most economists who have studied the health care industry have concluded that there is

Accepted Answer

A)  an underallocation of resources for health care in the United States.
B)  an overallocation of resources for health care in the United States.
C)  insufficient technological progress in the medical industry.
D)  a need for government price controls for physicians' fees.E) A) and B)
F) All of the above

Question 15

An increase in the demand for health care would most likely result from

Accepted Answer

A)  healthier lifestyles.
B)  an aging population.
C)  less health insurance coverage.
D)  increased productivity in health care.E) B) and C)
F) A) and B)

Question 16

Health savings accounts enable individuals who have high-deductible private insurance to place tax-free dollars into special accounts that can be used to pay for medical expenses.

Accepted Answer

A) True 
 B)False

Question 17

The Patient Protection and Affordable Care Act (PPACA)  of 2010 is designed to address a wide-ranging set of issues including the following, except

Accepted Answer

A)  the large portion of health spending supported by government insurance.
B)  the high and rising cost of health insurance and health care spending.
C)  the fact that tens of millions of Americans do not have health insurance.
D)  the inability of many people with preexisting conditions to obtain health insurance.E) None of the above
F) B) and D)

Question 18

Monthly premiums for Medicare insurance that private individuals pay cover how much of the cost of benefits provided by the program?

Accepted Answer

A)  one-fourth
B)  one-half
C)  three-fourths
D)  100 percentE) A) and B)
F) B) and C)

Question 19

Health savings accounts (HSAs) , implemented by the 2003 Medicare law,

Accepted Answer

A)  are only available to those enrolled in Medicare.
B)  allow workers to accumulate untaxed dollars for payment of qualified medical expenses.
C)  are criticized because they require workers to "use it or lose it" each year; workers are not allowed to accumulate balances over time.
D)  can only be used to pay for prescription drugs.E) A) and C)
F) None of the above

Question 20

Rising health care costs have the following implications, except

Accepted Answer

A)  faster growth of wages to workers.
B)  a growing number of uninsured workers.
C)  large numbers of personal bankruptcies.
D)  outsourcing and off-shoring of firms' operations.E) B) and C)
F) A) and B)

Exam 24: Health Care

An increase in the demand for health care would most likely result from

Correct AnswerverifiedShow Answer

Most economists who have studied the health care industry have concluded that there is

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Which of the following provisions of the PPACA do proponents expect to reduce the growth of health care spending?

Correct AnswerverifiedShow Answer

Monthly premiums for Medicare insurance that private individuals pay cover how much of the cost of benefits provided by the program?

Correct AnswerverifiedShow Answer

One major difference between PPOs (preferred providers organizations) and HMOs (health maintenance organizations) is that

Correct AnswerverifiedShow Answer

Managed-care organizations attempt to control their enrolled members' use of health care as a way of containing costs.

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

Which of the following is a supply factor in the health care market?

Correct AnswerverifiedShow Answer

The main purpose of HMOs and PPOs is to

Correct AnswerverifiedShow Answer

As a percentage of GDP, U.S.health care spending is higher than that of any other major industrial country.

Correct AnswerverifiedShow Answer

One of the taxes included in the Patient Protection and Affordable Care Act (PPACA) to generate revenue is a tax on junk food.

Correct AnswerverifiedShow Answer

A decrease in the demand for health care would most likely result from

Correct AnswerverifiedShow Answer

The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine.

Correct AnswerverifiedShow Answer

The Patient Protection and Affordable Care Act (PPACA) of 2010 is designed to address a wide-ranging set of issues including the following, except

Correct AnswerverifiedShow Answer

Employers in the U.S.started offering health insurance as a fringe benefit to their employees during World War II as a way of getting around the wage controls that were in effect then.

Correct AnswerverifiedShow Answer

Rising health care costs have the following implications, except

Correct AnswerverifiedShow Answer

Health savings accounts (HSAs) , implemented by the 2003 Medicare law,

Correct AnswerverifiedShow Answer

Which of the following is not one of the new taxes imposed under the PPACA?

Correct AnswerverifiedShow Answer

Health savings accounts enable individuals who have high-deductible private insurance to place tax-free dollars into special accounts that can be used to pay for medical expenses.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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