Question 1

The table gives supply and demand data for a certain elective surgical procedure. If suppliers provide the quantity of health care demanded and insurance pays one-half of the equilibrium price, the immediate price to the consumer and quantity of health care demanded would be

Accepted Answer

A)  $2,000 and 5,200.
B)  $2,000 and 4,000.
C)  $1,000 and 5,200.
D)  $1,000 and 1,000.E) None of the above
F) B) and C)

Question 2

As a percentage of GDP, health care spending in the United States has

Accepted Answer

A)  decreased substantially since 1960.
B)  increased slightly since 1960.
C)  increased substantially since 1960.
D)  remained relatively constant since 1960.E) All of the above
F) A) and C)

Question 3

Refer to the graph of a hypothetical market for health care. The efficiency loss caused by the provision of health insurance covering four-fifths of the cost is given by the area

Accepted Answer

A)  egf.
B)  edc.
C)  eab.
D)  cdab.E) A) and B)
F) B) and C)

Question 4

Raising deductibles and copayments in health insurance plans is one effective way to contain health care costs.

Accepted Answer

A) True 
 B)False

Question 5

Approximately what percentage of U.S. health care spending is financed by public insurance?

Accepted Answer

A)  25 percent
B)  34 percent
C)  41 percent
D)  75 percentE) None of the above
F) B) and C)

Question 6

Total U.S. health care spending in 2017 was approximately

Accepted Answer

A)  $3.0 trillion.
B)  $1.6 trillion.
C)  $3.5 trillion.
D)  $4.1 trillion.E) A) and B)
F) B) and C)

Question 7

Insurance companies use deductibles and copayments to

Accepted Answer

A)  increase access to health care.
B)  reduce health care costs by discouraging overuse of the health care system.
C)  prevent small companies from self-insuring their workers.
D)  keep government out of the health care insurance industry.E) B) and C)
F) A) and D)

Question 8

One of the provisions of the PPACA is a personal mandate that all individuals

Accepted Answer

A)  pay a $1,000 deductible and 20 percent co-pay on all medical care except annual check-ups or preventative care.
B)  contribute at least 30 percent of the total cost of employer-provided health insurance.
C)  purchase health insurance for themselves and their dependents unless they are already covered by government or employer-provided insurance.
D)  with preexisting conditions must purchase a specially designated government insurance plan.E) None of the above
F) A) and B)

Question 9

Many economists believe that at the current level of consumption of health care in the United States, the marginal cost of health care for society is

Accepted Answer

A)  less than the marginal benefit.
B)  greater than the marginal benefit.
C)  equal to the marginal benefit.
D)  zero.E) All of the above
F) B) and C)

Question 10

Studies in industrially advanced nations indicate that a 10 percent increase in incomes will generate a

Accepted Answer

A)  2 percent increase in the amount of health care demanded.
B)  5 percent increase in the amount of health care demanded.
C)  10 percent increase in the amount of health care demanded.
D)  20 percent increase in the amount of health care demanded.E) None of the above
F) C) and D)

Question 11

The Patient Protection and Affordable Care Act (PPACA) of 2010 is more commonly known as

Accepted Answer

A)  Dodd Frank.
B)  Obamacare.
C)  stimulus spending.
D)  quantitative easing (Q
E)  .E) A) and B)
F) A) and C) B

Question 12

Explain how Singapore delivers good quality health care with significantly less spending than the United States.

Accepted Answer

Singapore does this by encouraging compe...

Question 13

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) B) and C)

Question 14

Identify the major sources of funding for health care and the relative percentages.

Accepted Answer

The major sources of funds for health ca...

Question 15

Which person would most likely be eligible to receive Medicare?

Accepted Answer

A)  a student attending a state university
B)  a person receiving Social Security benefits
C)  a part-time worker at a manufacturing company
D)  a U.S. college professor teaching in another countryE) All of the above
F) A) and C)

Question 16

What is the moral hazard problem associated with health care insurance?

Accepted Answer

The moral hazard problem refers to the t...

Question 17

In 2014, the Medicare and Medicaid programs reimbursed approximately what percentage of hospitals' total cost of providing care to the patients covered by those programs?

Accepted Answer

A)  80 percent
B)  90 percent
C)  100 percent
D)  105 percentE) All of the above
F) None of the above

Question 18

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

Question 19

The major objective of Medicaid is to

Accepted Answer

A)  provide health care services to the aged.
B)  provide health care services to those receiving public assistance.
C)  contain rising health care costs.
D)  make a basic health care package available to all Americans.E) B) and C)
F) A) and D)

Question 20

The price elasticity of demand for health care is

Accepted Answer

A)  perfectly inelastic.
B)  relatively inelastic.
C)  relatively elastic.
D)  perfectly elastic.E) None of the above
F) A) and D) B

Exam 24: Health Care

The table gives supply and demand data for a certain elective surgical procedure. If suppliers provide the quantity of health care demanded and insurance pays one-half of the equilibrium price, the immediate price to the consumer and quantity of health care demanded would be

Correct AnswerverifiedShow Answer

As a percentage of GDP, health care spending in the United States has

Correct AnswerverifiedShow Answer

Refer to the graph of a hypothetical market for health care. The efficiency loss caused by the provision of health insurance covering four-fifths of the cost is given by the area

Correct AnswerverifiedShow Answer

Raising deductibles and copayments in health insurance plans is one effective way to contain health care costs.

Correct AnswerverifiedShow Answer

Approximately what percentage of U.S. health care spending is financed by public insurance?

Correct AnswerverifiedShow Answer

Total U.S. health care spending in 2017 was approximately

Correct AnswerverifiedShow Answer

Insurance companies use deductibles and copayments to

Correct AnswerverifiedShow Answer

One of the provisions of the PPACA is a personal mandate that all individuals

Correct AnswerverifiedShow Answer

Many economists believe that at the current level of consumption of health care in the United States, the marginal cost of health care for society is

Correct AnswerverifiedShow Answer

Studies in industrially advanced nations indicate that a 10 percent increase in incomes will generate a

Correct AnswerverifiedShow Answer

The Patient Protection and Affordable Care Act (PPACA) of 2010 is more commonly known as

Correct AnswerverifiedB

Explain how Singapore delivers good quality health care with significantly less spending than the United States.

Correct AnswerverifiedSingapore does this by encouraging compe...View AnswerShow Answer

One major factor contributing to rising health care costs is

Correct AnswerverifiedShow Answer

Identify the major sources of funding for health care and the relative percentages.

Correct AnswerverifiedThe major sources of funds for health ca...View AnswerShow Answer

Which person would most likely be eligible to receive Medicare?

Correct AnswerverifiedShow Answer

What is the moral hazard problem associated with health care insurance?

Correct AnswerverifiedThe moral hazard problem refers to the t...View AnswerShow Answer

In 2014, the Medicare and Medicaid programs reimbursed approximately what percentage of hospitals' total cost of providing care to the patients covered by those programs?

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 AnswerverifiedD

The major objective of Medicaid is to

Correct AnswerverifiedShow Answer

The price elasticity of demand for health care is

Correct AnswerverifiedB

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B

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Singapore does this by encouraging compe...
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The major sources of funds for health ca...
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The moral hazard problem refers to the t...
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D

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B