Question 1

What are the two major problems facing the health care system of the United States?

Accepted Answer

A)  the inadequate supply of physicians and the need to build more hospitals
B)  increasing the demand for and supply of health care
C)  the rapid rate of technological change and an unhealthy population
D)  the need to control costs and make health care accessibleE) None of the above
F) A) and B)

Question 2

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 3

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 4

Because of health insurance, resources are underallocated to the health care industry.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not an element of the Patient Protection and Affordable Care Act (PPACA) ?

Accepted Answer

A)  Insurance companies can no longer deny coverage to anyone on the basis of a preexisting condition.
B)  To contain costs, insurance companies may impose annual or lifetime expenditure caps on those that they insure.
C)  All firms with 50 or more employees are required to purchase insurance for their workers or pay a fine
D)  Individuals who are not covered by either government- or employer-provided insurance are required to purchase health insurance for themselves and their dependentsE) B) and C)
F) A) and B)

Question 6

Which of the following is not a characteristic of health savings accounts (HSAs) ? Test Bank: II Topic: Cost Containment: Altering Incentives

Accepted Answer

A)  They are available to workers covered by health insurance plans with high deductibles ($1,000 or more)  and do not have other first-dollar insurance coverage.
B)  Contributions to HSAs are tax-deductible.
C)  Unused funds in HSAs accumulate and remain available for later out-of-pocket medical expenses.
D)  Only workers can contribute to HSAs; employers cannot.E) A) and D)
F) A) and B)

Question 7

Technological progress in the health care industry has typically reduced costs and increased supply.

Accepted Answer

A) True 
 B)False

Question 8

The price elasticity of demand for health care is 0.2.This means that a 5 percent increase in price will induce a

Accepted Answer

A)  10 percent decrease in quantity demanded.
B)  5 percent decrease in quantity demanded.
C)  2.5 percent decrease in quantity demanded.
D)  1 percent decrease in quantity demandeD.Topic: Why the Rapid Rise in Costs?E) A) and B)
F) B) and C)

Question 9

The "too much of a good thing" situation in health care in the U.S.is a result of the following causes, except

Accepted Answer

A)  the information asymmetry between health care providers and consumers.
B)  the way health care spending is financed in the U.S.
C)  the interaction between insurance and technological progress in the health care industry.
D)  the rising wages of health care workers.E) None of the above
F) A) and D)

Question 10

The reasons why health care costs in countries with public health insurance, like the United Kingdom and Canada, have not risen as much as the costs in the U.S.include the following, except

Accepted Answer

A)  setting a cap on costs to ration health care.
B)  waiting or queuing to ration health care.
C)  fixed government budgets for health care, leading to rationing.
D)  expanded coverage as a way to ration health care.E) A) and B)
F) All of the above

Question 11

After WWII, a provision in the federal tax law favored company-provided health insurance over individual-purchased health insurance.By 2007, about what percentage of people with private health insurance in the U.S.received it as an employer-provided benefit?

Accepted Answer

A)  34 percent
B)  51 percent
C)  72 percent
D)  88 percentE) A) and B)
F) All of the above

Question 12

Factors that have hampered the increase in the supply of physicians in the U.S.include the following, except

Accepted Answer

A)  actions by doctors' unions, like the AMA.
B)  rising direct expenses for a medical degree.
C)  higher opportunity cost of medical education and training.
D)  rising incomes of physicians.E) B) and C)
F) All of the above

Question 13

Employer-provided private health insurance began in the United States because

Accepted Answer

A)  the rising threat of socialism prompted U.S.companies to provide insurance to dampen enthusiasm for socialist reform.
B)  during World War II, wage and price controls forced employers to use nonwage forms of compensation to attract workers.
C)  poor health conditions at the beginning of the 20th century prompted the U.S.government to require new companies to offer health insurance to employees.
D)  the American Medical Association successfully lobbied the U.S.government to provide subsidies to companies offering private health insurance to employees.E) All of the above
F) C) and D)

Question 14

Health care spending accounted for what percentage of U.S.GDP in 1960 and in 2014?

Accepted Answer

A)  5.0 percent and 5.5 percent, respectively
B)  10.0 percent and 12.0 percent, respectively
C)  5.0 percent and 17.5 percent, respectively
D)  20.0 percent and 33.5 percent, respectivelyE) C) and D)
F) B) and C)

Question 15

The federal government in 2006 enacted limits on "pain and suffering" awards on medical malpractice lawsuits against physicians.

Accepted Answer

A) True 
 B)False

Question 16

The medically uninsured may wait until their illness reaches a critical stage before going to the hospital for admittance or emergency care.Hospitals in the U.S.provide how much of these uncompensated, or "free," health care services per year?

Accepted Answer

A)  about $6 billion
B)  about $12 billion
C)  about $40 billion
D)  about $65 billionE) C) and D)
F) None of the above

Question 17

For many years, the price of medical care in the United States has

Accepted Answer

A)  risen at the same rate as the overall price level.
B)  risen at a faster rate than the overall price level.
C)  risen, but at a slower rate than the overall price level.
D)  fallen.E) A) and C)
F) A) and B)

Question 18

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

Question 19

Subsidy provisions under the Patient Protection and Affordable Care Act were designed so that individuals just above the 133 percent of poverty level threshold would have to spend no more than percent of their income purchasing health insurance.

Accepted Answer

A)  7
B)  1
C)  10
D)  4E) B) and C)
F) C) and D)

Question 20

Defensive medicine refers to the idea that

Accepted Answer

A)  it is more cost-efficient to prevent illnesses than to cure them.
B)  physicians may require unnecessary testing as a means of protecting themselves against malpractice suits.
C)  doctors know much more about diagnosing and treating illnesses than do health care consumers.
D)  physicians do not advertise their services or fees.E) A) and B)
F) A) and C)

Exam 24: Health Care

Because of health insurance, resources are underallocated to the health care industry.

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of health savings accounts (HSAs) ? Test Bank: II Topic: Cost Containment: Altering Incentives

Correct AnswerverifiedShow Answer

The "too much of a good thing" situation in health care in the U.S.is a result of the following causes, except

Correct AnswerverifiedShow Answer

After WWII, a provision in the federal tax law favored company-provided health insurance over individual-purchased health insurance.By 2007, about what percentage of people with private health insurance in the U.S.received it as an employer-provided benefit?

Correct AnswerverifiedShow Answer

Factors that have hampered the increase in the supply of physicians in the U.S.include the following, except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The federal government in 2006 enacted limits on "pain and suffering" awards on medical malpractice lawsuits against physicians.

Correct AnswerverifiedShow Answer

Employer-provided private health insurance began in the United States because

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

For many years, the price of medical care in the United States has

Correct AnswerverifiedShow Answer

What are the two major problems facing the health care system of the United States?

Correct AnswerverifiedShow Answer

Health care spending accounted for what percentage of U.S.GDP in 1960 and in 2014?

Correct AnswerverifiedShow Answer

Subsidy provisions under the Patient Protection and Affordable Care Act were designed so that individuals just above the 133 percent of poverty level threshold would have to spend no more than percent of their income purchasing health insurance.

Correct AnswerverifiedShow Answer

Defensive medicine refers to the idea that

Correct AnswerverifiedShow Answer

The price elasticity of demand for health care is 0.2.This means that a 5 percent increase in price will induce a

Correct AnswerverifiedShow Answer

Which of the following is not an element of the Patient Protection and Affordable Care Act (PPACA) ?

Correct AnswerverifiedShow Answer

Technological progress in the health care industry has typically reduced costs and increased supply.

Correct AnswerverifiedShow Answer

The medically uninsured may wait until their illness reaches a critical stage before going to the hospital for admittance or emergency care.Hospitals in the U.S.provide how much of these uncompensated, or "free," health care services per year?

Correct AnswerverifiedShow Answer

The reasons why health care costs in countries with public health insurance, like the United Kingdom and Canada, have not risen as much as the costs in the U.S.include the following, except

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

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