Question 1

The price of medical care in the United States has

Accepted Answer

A)   remained relatively unchanged in recent years.
B)   risen slower than the overall price level.
C)   risen at the same pace as the overall price level.
D)   risen faster than the overall price level.E) A) and C)
F) C) and D)

Question 2

Health care spending was about what percentage of U.S. GDP in 2014?

Accepted Answer

A)   45 percent
B)   32 percent
C)   18 percent
D)   8 percentE) None of the above
F) B) and D)

Question 3

The health care industry currently absorbs about 17.5 percent of U.S. gross domestic product.

Accepted Answer

A) True 
 B)False

Question 4

About what percentage of the U.S. population had no health insurance for the entire year in 2015?

Accepted Answer

A)   3 percent
B)   9 percent
C)   25 percent
D)   33 percentE) C) and D)
F) A) and B)

Question 5

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

Question 6

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

Question 7

Aside from new taxes, the Patient Protection and Affordable Care Act (PPACA) aims to generate revenue by enforcing a personal mandate that requires all individuals not covered by employer- or government-provided health insurance to purchase insurance.

Accepted Answer

A) True 
 B)False

Question 8

The employer mandate of the PPACA requires that

Accepted Answer

A)   every firm must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
B)   every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
C)   every firm with fewer than 50 full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
D)   every firm with 500 or more employees must establish their own on-site medical facilities to provide employees with basic medical care.E) None of the above
F) C) and D)

Question 9

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

Question 10

Which factor will tend to increase the demand for health care?

Accepted Answer

A)   an improvement in medical technology
B)   a reduction in subsidies for Medicare
C)   an increase in the productivity of physicians
D)   an increase in the average age of the populationE) C) and D)
F) B) and D)

Question 11

Roughly how much of health care spending in the U.S. in 2014 was financed by private and public insurance?

Accepted Answer

A)   20 percent
B)   40 percent
C)   60 percent
D)   80 percentE) A) and C)
F) None of the above

Question 12

The fee-for-service arrangement for paying doctors is one way to reduce health care costs.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not a characteristic of health savings accounts (HSAs) ?

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

Question 14

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

Question 15

The demand for health care is highly elastic with respect to both price and income.

Accepted Answer

A) True 
 B)False

Question 16

In order to help pay for the costs of extending health insurance to previously uninsured people, the PPACA imposes new taxes, including the following, except

Accepted Answer

A)   an increase in the Medicare payroll tax for individuals earning more than $200,000 ($250,000 for married couples)  per year.
B)   an increase in the capital gains tax for individuals earning more than $200,000 ($250,000 for married couples)  per year.
C)   a tax levied on indoor tanning.
D)   a tax on junk foods and soda.E) A) and D)
F) A) and C)

Question 17

A decrease in the demand for health care would most likely result from

Accepted Answer

A)   newer and more costly medical technology.
B)   more use of defensive medicine.
C)   an aging population.
D)   healthier lifestyles.E) A) and D)
F) B) and C)

Question 18

The availability of health insurance tends to

Accepted Answer

A)   decrease the quantity of health care demanded and cause an underallocation of resources to the health care industry.
B)   increase the quantity of health care demanded and cause an underallocation of resources to the health care industry.
C)   increase the quantity of health care demanded and cause an overallocation of resources to the health care industry.
D)   decrease the quantity of health care demanded and cause an overallocation of resources to the health care industry.E) B) and C)
F) C) and D)

Question 19

The Patient Protection and Affordable Care Act (PPACA)  attempts to provide health-insurance coverage to low-income people through the following methods, except

Accepted Answer

A)   establishing a new government insurance system specifically for the poor.
B)   requiring large employers to cover all their employees, including the poor.
C)   expanding the Medicaid system to cover those whose incomes are less than 133 percent of the poverty level.
D)   providing subsidies to purchase health insurance to those who must buy insurance coverage on their own.E) A) and B)
F) B) and C)

Question 20

Which of the following provisions of the PPACA do proponents expect to reduce the growth of health care spending?

Accepted Answer

A)   prohibiting insurers from dropping or denying individuals with preexisting conditions
B)   allowing individuals to purchase coverage through insurance exchanges
C)   subsidizing purchases of insurance for those complying with the personal mandate
D)   expanding access to Medicaid coverageE) C) and D)
F) B) and D)

Exam 24: Health Care

In order to help pay for the costs of extending health insurance to previously uninsured people, the PPACA imposes new taxes, including the following, except

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Which of the following is not a characteristic of health savings accounts (HSAs) ?

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Health care spending was about what percentage of U.S. GDP in 2014?

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About what percentage of the U.S. population had no health insurance for the entire year in 2015?

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A decrease in the demand for health care would most likely result from

Correct AnswerverifiedShow Answer

The demand for health care is highly elastic with respect to both price and income.

Correct AnswerverifiedShow Answer

Which of the following provisions of the PPACA do proponents expect to reduce the growth of health care spending?

Correct AnswerverifiedShow Answer

The price of medical care in the United States has

Correct AnswerverifiedShow Answer

The availability of health insurance tends to

Correct AnswerverifiedShow Answer

The two main types of managed-care organizations are

Correct AnswerverifiedShow Answer

The health care industry currently absorbs about 17.5 percent of U.S. gross domestic product.

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

The fee-for-service arrangement for paying doctors is one way to reduce health care costs.

Correct AnswerverifiedShow Answer

Aside from new taxes, the Patient Protection and Affordable Care Act (PPACA) aims to generate revenue by enforcing a personal mandate that requires all individuals not covered by employer- or government-provided health insurance to purchase insurance.

Correct AnswerverifiedShow Answer

Which factor will tend to increase the demand for health care?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Roughly how much of health care spending in the U.S. in 2014 was financed by private and public insurance?

Correct AnswerverifiedShow Answer

The Patient Protection and Affordable Care Act (PPACA) attempts to provide health-insurance coverage to low-income people through the following methods, except

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

The employer mandate of the PPACA requires that

Correct AnswerverifiedShow Answer

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