Question 1

The so-called government tax subsidy for health insurance comes in the form of

Accepted Answer

A)   health-insurance benefits to employees that are treated as tax-exempt income.
B)   employer-provided insurance policies that are part of employees' compensation.
C)   government subsidies to households in the form of Medicare and Medicaid.
D)   subsidies provided to firms for offering health insurance coverage to employees.E) A) and B)
F) A) and C)

Question 2

Most industrialized countries emphasize private health insurance paid by employers, to provide coverage for most workers in each nation.

Accepted Answer

A) True 
 B)False

Question 3

The diagnosis-related group (DRG)  system adopted by Medicare since 1983 has had the following effects, except

Accepted Answer

A)   hospitals now receive a fixed payment for treating each patient.
B)   the average length of a hospital stay has increased.
C)   more patients are treated on an outpatient basis.
D)   hospitals now have an incentive to restrict the amount of resources used for patients.E) A) and D)
F) A) and C)

Question 4

Employer-provided private health insurance

Accepted Answer

A)   is unique to the United States and not typically found in other countries.
B)   is the most common form of health care provision in industrialized countries.
C)   substantially reduces the cost of health care provision relative to national health insurance schemes.
D)   provides a small percentage of health care spending in the United States.E) A) and B)
F) B) and D)

Question 5

Economists argue that in treating patients,

Accepted Answer

A)   physicians should use any test or procedures that might help the patient.
B)   health care should not be rationed by physicians, because it is an entitlement or right.
C)   both benefits and costs should be taken into account by physicians.
D)   physicians should use any test or procedure whose marginal benefit is positive.E) A) and B)
F) C) and D)

Question 6

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 7

Access to health care is a highly publicized problem in the U.S. The number of Americans in 2015 who did not have health insurance coverage was approximately

Accepted Answer

A)   12 million.
B)   30 million.
C)   85 million.
D)   121 million.E) All of the above
F) A) and B)

Question 8

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

Question 9

Because employer payments for health insurance are not subject to income or payroll taxes, government in effect provides a subsidy to health care.

Accepted Answer

A) True 
 B)False

Question 10

Singapore's health care system includes the following major elements, except

Accepted Answer

A)   government mandates designed to promote competition on price and quality among health care providers.
B)   high out-of-pocket costs to consumers.
C)   laws requiring people to save for future health expenditures.
D)   a national health insurance plan for its citizens provided by the government.E) B) and D)
F) B) and C)

Question 11

In recent decades, the cost of health care has

Accepted Answer

A)   risen fast due to both rising prices and increasing quantities of services consumed.
B)   risen solely because of rising prices of health care goods and services.
C)   remained somewhat stable due to rising prices but falling quantities of services consumed.
D)   risen solely because of rising quantities of medical goods and services consumed.E) All of the above
F) C) and D)

Question 12

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) B) and D)
F) None of the above

Question 13

Which person would most likely be eligible to receive Medicaid?

Accepted Answer

A)   a person who receives Medicare benefits
B)   a person who receives Social Security benefits
C)   a person who works in a government-operated hospital
D)   a person who qualifies for the Supplementary Security Income programE) A) and B)
F) A) and D)

Question 14

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 15

(Last Word)  Singapore encourages competition in its health care market by

Accepted Answer

A)   requiring hospitals to post prices for services and by government publishing hospital performance records.
B)   avoiding any government involvement in the health care market.
C)   operating government-run hospitals to compete directly with private hospitals.
D)   outsourcing all of its health care services to foreign providers.E) C) and D)
F) B) and C)

Question 16

Which of the following constituted the largest share of total health care spending in 2014?

Accepted Answer

A)   physicians
B)   hospitals
C)   nursing homes
D)   prescription drugsE) B) and D)
F) B) and C)

Question 17

About how many people were employed in the U.S. health care industry in 2014?

Accepted Answer

A)   5 million
B)   12 million
C)   34 million
D)   42 millionE) B) and D)
F) None of the above

Question 18

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) B) and D)
F) None of the above

Question 19

Medicare is the nationwide federal health care program available to Social Security beneficiaries and the disabled.

Accepted Answer

A) True 
 B)False

Question 20

Approximately how many millions of Americans did not have health insurance coverage in 2015?

Accepted Answer

A)   24
B)   30
C)   49
D)   63E) B) and D)
F) All of the above

Exam 24: Health Care

Employer-provided private health insurance

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Economists argue that in treating patients,

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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

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Most industrialized countries emphasize private health insurance paid by employers, to provide coverage for most workers in each nation.

Correct AnswerverifiedShow Answer

Based on the available elasticity evidence, health care

Correct AnswerverifiedShow Answer

Singapore's health care system includes the following major elements, except

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About how many people were employed in the U.S. health care industry in 2014?

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Which person would most likely be eligible to receive Medicaid?

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

Correct AnswerverifiedShow Answer

Access to health care is a highly publicized problem in the U.S. The number of Americans in 2015 who did not have health insurance coverage was approximately

Correct AnswerverifiedShow Answer

In recent decades, the cost of health care has

Correct AnswerverifiedShow Answer

Approximately how many millions of Americans did not have health insurance coverage in 2015?

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Which of the following constituted the largest share of total health care spending in 2014?

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

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

Correct AnswerverifiedShow Answer

(Last Word) Singapore encourages competition in its health care market by

Correct AnswerverifiedShow Answer

The diagnosis-related group (DRG) system adopted by Medicare since 1983 has had the following effects, except

Correct AnswerverifiedShow Answer

The so-called government tax subsidy for health insurance comes in the form of

Correct AnswerverifiedShow Answer

Medicare is the nationwide federal health care program available to Social Security beneficiaries and the disabled.

Correct AnswerverifiedShow Answer

Because employer payments for health insurance are not subject to income or payroll taxes, government in effect provides a subsidy to health care.

Correct AnswerverifiedShow Answer

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