Question 1

What is one alternative to the PPACA that has been proposed?

Accepted Answer

One alternative to the PPACA would be so...

Question 2

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.E) B) and C)
F) All of the above

Question 3

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 4

The idea that one pays a relatively small known cost for protection against an uncertain and much larger cost is the basic principle behind

Accepted Answer

A)  insurance.
B)  copayment.
C)  moral hazard.
D)  asymmetric information.E) A) and B)
F) None of the above

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Approximately how many millions of Americans did not have health insurance coverage in 2017?

Accepted Answer

A)  9
B)  29
C)  49
D)  63E) A) and B)
F) C) and D)

Question 7

People 65 years old and older constituted about 9 percent of the U.S. population in 1960. In 2017, this percentage was around

Accepted Answer

A)  the same as in 1960.
B)  15 percent.
C)  21 percent.
D)  5 percent.E) B) and C)
F) All of the above

Question 8

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 9

The table shows the hypothetical demand and supply schedule for health care. If private insurance covers 50 percent of the equilibrium price, how much will the insured pay and what will be their quantity of health care demanded?

Accepted Answer

A)  $400 and 500 units.
B)  $400 and 400 units.
C)  $500 and 400 units.
D)  $200 and 700 units.E) B) and C)
F) A) and D)

Question 10

Briefly discuss the two major problems facing the health care system?

Accepted Answer

The two major problems facing the health...

Question 11

In recent decades, health care expenditures in the U.S. have been rising in absolute terms, but falling as a percentage of GDP.

Accepted Answer

A) True 
 B)False

Question 12

The table shows the hypothetical demand and supply schedule for health care. If there was no health insurance, the equilibrium price and quantity of health care would be

Accepted Answer

A)  $600 and 300 units.
B)  $400 and 400 units.
C)  $400 and 500 units.
D)  $500 and 400 units.E) A) and B)
F) B) and C)

Question 13

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 D)
F) All of the above

Question 14

The asymmetric information problem in health care implies that the demand for health care is a "supplier-induced demand."

Accepted Answer

A) True 
 B)False

Question 15

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 C)
F) None of the above

Question 16

In industrially advanced countries, the price elasticity of demand for health care is about

Accepted Answer

A)  2.0.
B)  0.2.
C)  4.5.
D)  1.0.E) B) and D)
F) B) and C)

Question 17

Between 1960 and 2017, U.S. health care spending as a percentage of domestic output

Accepted Answer

A)  more than tripled.
B)  more than quadrupled.
C)  declined by one-half.
D)  remained relatively constant.E) A) and B)
F) A) and C)

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

Which of the following factors is not a reason why competitive pricing has not developed in the health care industry?

Accepted Answer

A)  The government bans competitive pricing in health care.
B)  Consumers rarely shop around for health care providers.
C)  Insurance covers most consumers' cost of health care.
D)  Consumers are often wary of low prices in health care.E) C) and D)
F) B) and C)

Question 20

The two main types of managed-care organizations are

Accepted Answer

A)  U.S. veterans' hospitals and university health clinics.
B)  health maintenance organizations (HMOs) and private nursing homes.
C)  health maintenance organizations (HMOs) and preferred provider organizations (PPOs) .
D)  preferred provider organizations (PPOs) and nonprofit hospitals.E) All of the above
F) C) and D)

Exam 24: Health Care

What is one alternative to the PPACA that has been proposed?

Correct AnswerverifiedOne alternative to the PPACA would be so...View AnswerShow Answer

The idea that one pays a relatively small known cost for protection against an uncertain and much larger cost is the basic principle behind

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following factors is not a reason why competitive pricing has not developed in the health care industry?

Correct AnswerverifiedShow Answer

A major implication of asymmetric information is that

Correct AnswerverifiedShow Answer

In recent decades, health care expenditures in the U.S. have been rising in absolute terms, but falling as a percentage of GDP.

Correct AnswerverifiedShow Answer

The table shows the hypothetical demand and supply schedule for health care. If there was no health insurance, the equilibrium price and quantity of health care would be

Correct AnswerverifiedShow Answer

People 65 years old and older constituted about 9 percent of the U.S. population in 1960. In 2017, this percentage was around

Correct AnswerverifiedShow Answer

Approximately how many millions of Americans did not have health insurance coverage in 2017?

Correct AnswerverifiedShow Answer

The table shows the hypothetical demand and supply schedule for health care. If private insurance covers 50 percent of the equilibrium price, how much will the insured pay and what will be their quantity of health care demanded?

Correct AnswerverifiedShow Answer

In industrially advanced countries, the price elasticity of demand for health care is about

Correct AnswerverifiedShow Answer

The asymmetric information problem in health care implies that the demand for health care is a "supplier-induced demand."

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

Briefly discuss the two major problems facing the health care system?

Correct AnswerverifiedThe two major problems facing the health...View AnswerShow Answer

Between 1960 and 2017, U.S. health care spending as a percentage of domestic output

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The two main types of managed-care organizations are

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

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

Correct AnswerverifiedShow Answer

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One alternative to the PPACA would be so...
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The two major problems facing the health...
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