Question 1

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) A) and B)
F) A) and D)

Question 2

One of the economic effects of rising health care costs in the labor market is that

Accepted Answer

A)  productivity in medical care decreases.
B)  the demand for medical workers is decreasing.
C)  government is cutting health care coverage for workers.
D)  employers are using more temporary and part-time workers.E) A) and C)
F) None of the above

Question 3

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) A) and B)
F) All of the above

Question 4

Which of the following is not one of the new taxes imposed under the PPACA?

Accepted Answer

A)  2.9 percent excise tax on medical devices
B)  10 percent tax on indoor tanning
C)  3.8 percent tax on "junk food"
D)  40 percent tax on employers providing insurance to employees in excess of $10,200 per year for individuals or $27,500 per year for families.E) B) and C)
F) A) and D)

Question 5

What was the primary goal of the proponents of the Patient Protection and Affordable Care Act?

Accepted Answer

A)  improve the quality of care by reducing medical malpractice
B)  reduce health care costs in the United States by 50 percent
C)  make all U.S. health care publically (government) provided
D)  extend health insurance coverage to all AmericansE) B) and C)
F) None of the above

Question 6

About what percentage of health care spending in the U.S. in 2017 was financed by private health insurance?

Accepted Answer

A)  25 percent
B)  34 percent
C)  41 percent
D)  75 percentE) C) and D)
F) A) and B)

Question 7

The number of Americans without health insurance (as of 2017) is approximately

Accepted Answer

A)  20 million, or about 6 percent of the population.
B)  49 million, or about 15 percent of the population.
C)  29 million, or about 9 percent of the population.
D)  72 million, or about 22 percent of the population.E) None of the above
F) B) and C)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a nationwide Federal health care program available to Social Security beneficiaries and persons with disabilities?

Accepted Answer

A)  Medicaid
B)  Medicare
C)  PPOs
D)  HMOsE) A) and B)
F) None of the above

Question 10

Which of the following is a demand factor in the market for health care?

Accepted Answer

A)  the number of nurses graduating from universities
B)  productivity in the health care industry
C)  changes in medical technology
D)  physicians' treatment decisionsE) A) and B)
F) A) and C)

Question 11

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. One major consequence of doing this is that hospitals and other providers are then

Accepted Answer

A)  reducing the amount of health care services they provide.
B)  passing the uncovered costs on to patients with private health insurance.
C)  denying services to many Medicare and Medicaid patients.
D)  filing for bankruptcy regularly.E) A) and B)
F) A) and D)

Question 12

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) A) and B)
F) B) and D)

Question 13

The twin problems of health care in the U.S. are the rapidly rising cost of health care and limited access to health insurance coverage.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a reason why the demand for health care in the U.S. is quite price-inelastic?

Accepted Answer

A)  People consider health care to be a luxury.
B)  There are only a few, or no, substitutes.
C)  Most consumers do not shop around, preferring a long-term relationship with their doctors.
D)  Most patients have insurance, effectively removing their budget constraint for health care.E) C) and D)
F) B) and D)

Question 15

Which of the following statements is true about health care costs in the United States?

Accepted Answer

A)  Costs have risen because increases in the price of health care have more than offset reductions in the quantity of health care provided.
B)  Costs have risen because increases in the quantity of care provided have more than offset price reductions realized through economies of scale.
C)  Costs have risen because both the price of health care and the quantity provided have risen.
D)  Costs have remained relatively stable as price increases have been largely offset by reductions in the quantity provided.E) A) and B)
F) None of the above

Question 16

Given the availability of the Medicaid program, why are so many poor people uninsured?

Accepted Answer

A)  Because only a fixed percentage of the population can participate in Medicaid at any time.
B)  Because many poor people earn enough that they do not qualify for Medicaid.
C)  Because non-income requirements screen many poor people from the program.
D)  Because only native-born Americans are eligible for the program.E) None of the above
F) All of the above

Question 17

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

Question 18

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 19

How are the budgets for the federal, state, and local governments affected by rising health care costs?

Accepted Answer

The budgets of federal, state, and local...

Question 20

The health care industry currently absorbs about 17.9 percent of U.S. gross domestic product.

Accepted Answer

A) True 
 B)False

Exam 24: Health Care

Which of the following is a demand factor in the market for health care?

Correct AnswerverifiedShow Answer

The number of Americans without health insurance (as of 2017) is approximately

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The health care industry currently absorbs about 17.9 percent of U.S. gross domestic product.

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

The twin problems of health care in the U.S. are the rapidly rising cost of health care and limited access to health insurance coverage.

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

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. One major consequence of doing this is that hospitals and other providers are then

Correct AnswerverifiedShow Answer

Which of the following is a nationwide Federal health care program available to Social Security beneficiaries and persons with disabilities?

Correct AnswerverifiedShow Answer

About what percentage of health care spending in the U.S. in 2017 was financed by private health insurance?

Correct AnswerverifiedShow Answer

How are the budgets for the federal, state, and local governments affected by rising health care costs?

Correct AnswerverifiedThe budgets of federal, state, and local...View AnswerShow Answer

Which of the following is not a reason why the demand for health care in the U.S. is quite price-inelastic?

Correct AnswerverifiedShow Answer

What was the primary goal of the proponents of the Patient Protection and Affordable Care Act?

Correct AnswerverifiedShow Answer

Given the availability of the Medicaid program, why are so many poor people uninsured?

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

Which of the following is not one of the new taxes imposed under the PPACA?

Correct AnswerverifiedShow Answer

One of the economic effects of rising health care costs in the labor market is that

Correct AnswerverifiedShow Answer

Which of the following statements is true about health care costs in the United States?

Correct AnswerverifiedShow Answer

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The budgets of federal, state, and local...
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