Question 1

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

Question 2

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

Question 3

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 D)
F) A) and B)

Question 4

If the provision of medical insurance encourages people to take more health risks because they know they can receive treatment, then health insurance

Accepted Answer

A)  produces an asymmetric information problem.
B)  leads to a universal access problem.
C)  causes a defensive medicine problem.
D)  creates a moral hazard problem.E) B) and C)
F) All of the above

Question 5

All of the following factors lead to overconsumption of health care, except

Accepted Answer

A)  the practice of defensive medicine.
B)  health insurance that pays most of the health care costs.
C)  a government tax subsidy on employer-financed health insurance.
D)  rising incomes resulting from economic growth.E) A) and B)
F) None of the above

Question 6

The unemployed are disproportionately represented among the uninsured because

Accepted Answer

A)  one must be working to qualify for Medicaid.
B)  most workers obtain health insurance through their employers.
C)  most are young and in excellent health, so they choose not to purchase health insurance.
D)  a large percentage of the unemployed are heads of single-parent families.E) None of the above
F) B) and D)

Question 7

Employer-provided private health insurance

Accepted Answer

A)  is unique to the United States and not typically found in other countries.
B)  is the most common form of health care provision in industrialized countries.
C)  substantially reduces the cost of health care provision relative to national health insurance schemes.
D)  provides a small percentage of health care spending in the United States.E) A) and B)
F) All of the above

Question 8

The number of Americans without health insurance (as of 2015)  is approximately

Accepted Answer

A)  20 million, or about 6.3 percent of the population.
B)  49 million, or about 15.3 percent of the population.
C)  30 million, or about 9.4 percent of the population.
D)  72 million, or about 22.5 percent of the population.E) B) and D)
F) C) and D)

Question 9

Approximately what portion of health care spending in the U.S.in 2014 was paid by the patients (out-of-pocket) ?

Accepted Answer

A)  21 percent
B)  44 percent
C)  60 percent
D)  75 percentE) C) and D)
F) B) and C)

Question 10

About what percentage of health care spending in the U.S.in 2014 was financed by private health insurance?

Accepted Answer

A)  15 percent
B)  35 percent
C)  50 percent
D)  75 percentE) A) and D)
F) B) and D)

Question 11

Which of the following constituted the largest share of total health care spending in 2014?

Accepted Answer

A)  physicians
B)  hospitals
C)  nursing homes
D)  prescription drugsE) None of the above
F) A) and B)

Question 12

Total U.S.health care spending in 2014 was approximately

Accepted Answer

A)  $847 billion.
B)  $1.6 trillion.
C)  $3.0 trillion.
D)  $4.1 trillion.E) B) and C)
F) A) and B)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A)  18 percent
B)  40 percent
C)  44 percent
D)  57 percentE) All of the above
F) B) and C)

Question 16

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 50 percent of the remaining equilibrium price after a $1,000 deductible is satisfied, the quantity of health care demanded will be

Accepted Answer

A)  4,000.
B)  7,000.
C)  11,000.
D)  16,000.E) C) and D)
F) B) and C)

Question 17

(Consider This)  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) A) and B)
F) A) and C)

Question 18

Assume that health insurance pays three-fourths of the cost of health care.Under this type of system, there will be allocative

Accepted Answer

A)  efficiency because consumers pay a price below market equilibrium and receive a quantity at which the marginal cost to society equals the marginal benefit.
B)  efficiency because consumers pay a price below market equilibrium and receive a quantity at which the marginal benefit to society exceeds the marginal cost.
C)  inefficiency because consumers pay a price below market equilibrium and receive a quantity at which the marginal cost to society exceeds the marginal benefit.
D)  inefficiency because consumers pay a price above market equilibrium and receive a quantity at which the marginal benefit to society exceeds the marginal cost.E) All of the above
F) A) and B)

Question 19

(Consider This)  Subsidies to encourage hospitals and physicians to adopt electronic medical records have resulted in which of the following?

Accepted Answer

A)  improved care for a greater number of patients because of the efficiency gains
B)  reduced health care costs because of the efficiency gains in record keeping
C)  more patients seen but at a higher cost because of the high fixed cost of the recording devices
D)  less care at higher costs, as the extensive record-keeping process reduces efficiencyE) B) and D)
F) A) and B)

Question 20

Some insurance companies have teamed with hospitals and doctors to provide discounts for their services.The lists of cooperating doctors and hospitals are known as

Accepted Answer

A)  health maintenance organizations.
B)  preferred provider organizations.
C)  diagnosis-related groups.
D)  health alliances.E) A) and C)
F) None of the above

Exam 24: Health Care

If the provision of medical insurance encourages people to take more health risks because they know they can receive treatment, then health insurance

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Some insurance companies have teamed with hospitals and doctors to provide discounts for their services.The lists of cooperating doctors and hospitals are known as

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

Employer-provided private health insurance

Correct AnswerverifiedShow Answer

The unemployed are disproportionately represented among the uninsured because

Correct AnswerverifiedShow Answer

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 50 percent of the remaining equilibrium price after a $1,000 deductible is satisfied, the quantity of health care demanded will be

Correct AnswerverifiedShow Answer

Total U.S.health care spending in 2014 was approximately

Correct AnswerverifiedShow Answer

(Consider This) 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

All of the following factors lead to overconsumption of health care, except

Correct AnswerverifiedShow Answer

Insurance companies use deductibles and copayments to

Correct AnswerverifiedShow Answer

Approximately what portion of health care spending in the U.S.in 2014 was paid by the patients (out-of-pocket) ?

Correct AnswerverifiedShow Answer

Assume that health insurance pays three-fourths of the cost of health care.Under this type of system, there will be allocative

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 number of Americans without health insurance (as of 2015) is approximately

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

About what percentage of health care spending in the U.S.in 2014 was financed by private health insurance?

Correct AnswerverifiedShow Answer

(Consider This) Subsidies to encourage hospitals and physicians to adopt electronic medical records have resulted in which of the following?

Correct AnswerverifiedShow Answer

Which of the following constituted the largest share of total health care spending in 2014?

Correct AnswerverifiedShow Answer

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