Question 1

(Consider This) The PPACA created incentives for firms to:

Accepted Answer

A)   expand their workforces.
B)   provide on-site medical care for their workers.
C)   reduce workers to part-time status.
D)   fire workers with medical problems.E) None of the above
F) A) and B)

Question 2

Which of the following is a law passed in the last 15 years relating to health care?

Accepted Answer

A)   Establishment of health maintenance organizations to reduce health care costs.
B)   Establishment of deductibles and copayments in health insurance policies.
C)   Establishment of health savings accounts (HSAs) to promote saving for routine medical expenses.
D)   Establishment of fixed Medicare payment to hospitals based on one of several hundred diagnostic categories.E) A) and B)
F) A) and C)

Question 3

When economists say that health care services are overconsumed,they mean that:

Accepted Answer

A)   rich people buy too much health care and poor people buy too little.
B)   some resources now used in the health care industry could produce alternative goods and services that society values more highly.
C)   health care is being purchased in amounts such that marginal benefits exceed marginal costs.
D)   the price of health care is below equilibrium so that quantity demanded exceeds quantity supplied.E) A) and B)
F) A) and C)

Question 4

Which of the following statements is correct?

Accepted Answer

A)   Limited access to the health care system is a major cause of rising health care costs.
B)   Rising health care costs are a major cause of limited access to the health care system.
C)   Rising health care costs have forced employers to raise real wages above labor productivity.
D)   The tax subsidy that government provides for health care causes health care to be underconsumed.E) B) and D)
F) A) and D)

Question 5

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

Question 6

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

Accepted Answer

A)   17 percent.
B)   33 percent.
C)   50 percent.
D)   83 percent.E) A) and B)
F) B) and C)

Question 7

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 Americans.E) B) and C)
F) A) and D)

Question 8

The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine.

Accepted Answer

A) True 
 B)False

Question 9

Changes in the average age of the U.S.population over the past decade have decreased the demand for health care.

Accepted Answer

A) True 
 B)False

Question 10

The price elasticity of demand for health care is:

Accepted Answer

A)   perfectly inelastic.
B)   relatively inelastic.
C)   relatively elastic.
D)   perfectly elastic.E) A) and B)
F) C) and D)

Question 11

(Consider This) Which of the following best explains why hospital charges of $25 per aspirin are not unusual?

Accepted Answer

A)   Government payments for Medicare and Medicaid patients do not cover hospitals' fixed costs,so these costs must be distributed to other patients and their private insurance providers.
B)   Government exercises no cost control for Medicare and Medicaid,so hospitals get away with charging those patients $25 for an aspirin.
C)   Pharmaceutical companies have monopoly power over hospitals,allowing them to charge high prices for medications.
D)   Hospitals distribute a medically advanced form of aspirin that costs more to produce.E) B) and D)
F) B) and C)

Question 12

Defensive medicine:

Accepted Answer

A)   solves the moral hazard problem.
B)   increases the demand and costs for health care.
C)   solves the principal-agent problem.
D)   is the same as preventive medicine.E) A) and D)
F) A) and C)

Question 13

Other things equal,increased emphasis on providing the best possible medical care for all,regardless of income,will:

Accepted Answer

A)   increase the demand for health care.
B)   increase the supply of health care.
C)   have no effect.
D)   decrease the demand for health care.E) B) and D)
F) None of the above

Question 14

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

Question 15

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

Question 16

Health care:

Accepted Answer

A)   is an inferior good.
B)   is a normal good.
C)   is highly elastic with respect to price.
D)   has a price elasticity of demand of 1.E) C) and D)
F) A) and D)

Question 17

In the past several decades,U.S.health care expenditures have:

Accepted Answer

A)   risen absolutely but declined as a percentage of GDP.
B)   declined absolutely but risen as a percentage of GDP.
C)   risen absolutely and as a percentage of GDP.
D)   declined absolutely and as a percentage of GDP.E) B) and D)
F) All of the above

Question 18

(Consider This) Which of the following was a major objective of the Health Information Technology for Economic and Clinical Health Act?

Accepted Answer

A)   More accurate records so health care providers could increase billings.
B)   Equip all households with personal medical devices to send real-time health symptoms to health care providers.
C)   Identify potential cost savings by detecting excessive procedures and medications.
D)   All of these.E) All of the above
F) A) and C)

Question 19

In the United States,approximately how many doctors are there per 100,000 of population?

Accepted Answer

A)   162.
B)   275.
C)   580.
D)   5,800.E) A) and C)
F) A) and B)

Question 20

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

Exam 23: Health Care

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

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The availability of health insurance tends to:

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Changes in the average age of the U.S.population over the past decade have decreased the demand for health care.

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Health care:

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Which of the following statements is correct?

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

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Insurance companies use deductibles and copayments to:

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Which of the following is a law passed in the last 15 years relating to health care?

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Other things equal,increased emphasis on providing the best possible medical care for all,regardless of income,will:

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

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When economists say that health care services are overconsumed,they mean that:

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In the past several decades,U.S.health care expenditures have:

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The price elasticity of demand for health care is:

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Defensive medicine:

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The major objective of Medicaid is to:

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(Consider This) The PPACA created incentives for firms to:

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(Consider This) Which of the following was a major objective of the Health Information Technology for Economic and Clinical Health Act?

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The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine.

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(Consider This) Which of the following best explains why hospital charges of $25 per aspirin are not unusual?

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In the United States,approximately how many doctors are there per 100,000 of population?

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