Question 1

Changes in the average age of the U.S. population over the past decade have decreased the demand for health care.

Accepted Answer

A) True 
 B)False

Question 2

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

Question 3

In the health care market,

Accepted Answer

A)   demand has increased relative to supply.
B)   supply has increased relative to demand.
C)   neither demand nor supply has changed significantly in the past two decades.
D)   the concepts of demand and supply are irrelevant.E) A) and B)
F) A) and C)

Question 4

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 D)
F) C) and D)

Question 5

Rapidly rising U.S. health care costs have

Accepted Answer

A)   forced the growth of wages to keep pace.
B)   encouraged outsourcing.
C)   caused some employers to use more part-time and temporary workers.
D)   done all of these.E) A) and B)
F) All of the above

Question 6

Health maintenance organizations (HMOs)

Accepted Answer

A)   are based on the traditional fee-for-service system of paying physicians.
B)   charge a fixed amount per member, hire many of their own physicians, and provide health services only to members.
C)   are also known as preferred provider organizations.
D)   are illegal in several states.E) None of the above
F) A) and D)

Question 7

A major implication of asymmetric information is that

Accepted Answer

A)   health care suppliers may reduce the supply of health care.
B)   health care suppliers may increase the demand for health care.
C)   collusion between health care suppliers and purchasers may accelerate the rise in costs.
D)   resources may be underallocated to the health care industry.E) B) and D)
F) All of the above

Question 8

A unit set up by insurance companies that requires hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan is a

Accepted Answer

A)   preferred provider organization.
B)   health maintenance organization.
C)   diagnosis-related group system.
D)   regional health alliance.E) A) and C)
F) C) and D)

Question 9

The twin problems of the U.S. health care industry are

Accepted Answer

A)   rapidly rising costs and unequal access to health care.
B)   declining quality of health care and the duplication of specialized equipment at hospitals.
C)   declining per capita spending on health care and the moral hazard problem.
D)   the decline in the number of family physicians and the failure to vaccinate children.E) A) and C)
F) None of the above

Question 10

Suppose you go to a doctor but your health insurance plan does not reimburse you because you have not yet paid enough out of pocket for the year to qualify for insurance benefits. This is an example of

Accepted Answer

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

Question 11

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 12

Health care expenditures as a percentage of GDP are lower in the United States than in Germany, France, or Canada.

Accepted Answer

A) True 
 B)False

Question 13

When the supplier, not the buyer, of health care services makes most of the decisions about the amount and type of health care to be provided, there is

Accepted Answer

A)   a moral hazard in the health care market.
B)   asymmetric information in the health care market.
C)   a lack of medical ethics in the health care market.
D)   a need for Medicare in the health care market.E) A) and B)
F) All of the above

Question 14

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) None of the above

Question 15

A tax subsidy is involved in employer-financed health insurance because

Accepted Answer

A)   all working adults are covered by Medicare.
B)   all working adults are covered by Medicaid.
C)   employer payments for health insurance are not subject to income or payroll taxes.
D)   corporations that provide health insurance pay lower corporate income tax rates.E) A) and D)
F) B) and C)

Question 16

U.S. hospitals provide a significant amount of uncompensated, or "free," health care every year to the uninsured poor who are rushed in for emergency or critical care.

Accepted Answer

A) True 
 B)False

Question 17

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 C)
F) All of the above

Question 18

About three-fourths of all health care costs are paid out of pocket by patients.

Accepted Answer

A) True 
 B)False

Question 19

(Consider This)  Which of the following was a major objective of the Health Information Technology for Economic and Clinical Health Act?

Accepted Answer

A)   more accurate records so health care providers could increase billings
B)   equip all households with personal medical devices to send real-time health symptoms to health care providers
C)   identify potential cost savings by detecting excessive procedures and medications
D)   all of theseE) None of the above
F) B) and D)

Question 20

Major criticisms against the Patient Protection and Affordable Care Act (PPACA)  do not include which of the following arguments?

Accepted Answer

A)   It will lead to greater inefficiencies in health care, and overconsumption might even increase.
B)   It is very costly, and the revenue sources cited in the act will not be sufficient to cover future expenses.
C)   It still does not cover everyone in the nation, and there will still be significant numbers of Americans left uninsured.
D)   It might be the first step toward a socialized health insurance system where market forces will have no role in rationing health care.E) A) and D)
F) B) and C)

Exam 24: Health Care

When the supplier, not the buyer, of health care services makes most of the decisions about the amount and type of health care to be provided, there is

Correct AnswerverifiedShow Answer

About three-fourths of all health care costs are paid out of pocket by patients.

Correct AnswerverifiedShow Answer

Suppose you go to a doctor but your health insurance plan does not reimburse you because you have not yet paid enough out of pocket for the year to qualify for insurance benefits. This is an example of

Correct AnswerverifiedShow Answer

(Consider This) Which of the following was a major objective of the Health Information Technology for Economic and Clinical Health Act?

Correct AnswerverifiedShow Answer

Rapidly rising U.S. health care costs have

Correct AnswerverifiedShow Answer

U.S. hospitals provide a significant amount of uncompensated, or "free," health care every year to the uninsured poor who are rushed in for emergency or critical care.

Correct AnswerverifiedShow Answer

The twin problems of the U.S. health care industry are

Correct AnswerverifiedShow Answer

Health care expenditures as a percentage of GDP are lower in the United States than in Germany, France, or Canada.

Correct AnswerverifiedShow Answer

A tax subsidy is involved in employer-financed health insurance because

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Major criticisms against the Patient Protection and Affordable Care Act (PPACA) do not include which of the following arguments?

Correct AnswerverifiedShow Answer

In the health care market,

Correct AnswerverifiedShow Answer

Health maintenance organizations (HMOs)

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

One major factor contributing to rising health care costs is

Correct AnswerverifiedShow Answer

A major implication of asymmetric information is that

Correct AnswerverifiedShow Answer

A unit set up by insurance companies that requires hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan is a

Correct AnswerverifiedShow Answer

Changes in the average age of the U.S. population over the past decade have decreased the demand for health care.

Correct AnswerverifiedShow Answer

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