Question 1

A health care organization that contracts with employers to provide health insurance to their workers, and hires doctors and other groups to provide health care for the workers who are insured is a

Accepted Answer

A)  preferred provider organization.
B)  health maintenance organization.
C)  diagnosis-related group system.
D)  regional health alliance.E) B) and C)
F) A) and D)

Question 2

The so-called government tax subsidy for health insurance comes in the form of

Accepted Answer

A)  health-insurance benefits to employees that are treated as tax-exempt income.
B)  employer-provided insurance policies that are part of employees' compensation.
C)  government subsidies to households in the form of Medicare and Medicaid.
D)  subsidies provided to firms for offering health insurance coverage to employees.E) B) and C)
F) None of the above

Question 3

Economists argue that in treating patients,

Accepted Answer

A)  physicians should use any test or procedures that might help the patient.
B)  health care should not be rationed by physicians, because it is an entitlement or right.
C)  both benefits and costs should be taken into account by physicians.
D)  physicians should use any test or procedure whose marginal benefit is positive.E) A) and D)
F) C) and D)

Question 4

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 5

Insurance exchanges

Accepted Answer

A)  are government-regulated markets where individuals can purchase health insurance to satisfy the personal mandate provision of the PPACA.
B)  are expected to significantly increase health care costs by expanding government regulation.
C)  are government-regulated markets where prices are set directly by federal regulators.
D)  allow patients to get medical treatment when away from the providers covered by their regular health insurance.E) A) and B)
F) A) and C)

Question 6

The Patient Protection and Affordable Care Act prohibits insurance companies from denying coverage to anyone on the basis of a preexisting medical condition.

Accepted Answer

A) True 
 B)False

Question 7

Singapore's health care system is identified by critics of the PPACA as one good alternative system to study and emulate.Singapore does not have which of the following characteristics?

Accepted Answer

A)  Singapore has among the world's lowest infant mortality rates.
B)  Singapore spends about the same on health care per person as the U.S., but, unlike the U.S., it ranks among the top in every health-quality category monitored by the World Health
C)  Singapore has among the world's highest life expectancies.
D)  Singapore spends less than 5 percent of its GDP on health care.E) A) and D)
F) A) and C)

Question 8

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) None of the above
F) B) and D)

Question 9

(Consider This)  PPACA requirements for health insurance rates created incentives for

Accepted Answer

A)  all uninsured people to purchase health insurance and then overuse the health care services.
B)  companies to price insurance according to risk profiles.
C)  older people to purchase, but younger people to decline, health insurance offered through insurance exchanges.
D)  younger people to purchase, but older people to decline, health insurance offered through insurance exchanges.E) A) and C)
F) B) and D)

Question 10

Roughly what portion of U.S.total health spending is paid for by private and public insurance?

Accepted Answer

A)  one-tenth
B)  one-fourth
C)  four-fifths
D)  one-halfE) C) and D)
F) A) and B)

Question 11

Health maintenance organizations (HMOs) are like health clubs that operate facilities where people can exercise and get physical training.

Accepted Answer

A) True 
 B)False

Question 12

Approximately how many millions of Americans did not have health insurance coverage in 2015?

Accepted Answer

A)  24
B)  30
C)  49
D)  63E) A) and C)
F) All of the above

Question 13

The heavy reliance on private health insurance in the U.S.began during World War II, as a

Accepted Answer

A)  legal requirement for employment.
B)  patriotic duty of firms.
C)  way of imitating European employment practices.
D)  response by employers to the wage controls in effect then.E) All of the above
F) B) and C)

Question 14

Since 1960, health care costs in the United States have risen absolutely but remained constant as a percentage of gross domestic product.

Accepted Answer

A) True 
 B)False

Question 15

The provision of health insurance leads to a deadweight loss due to an overallocation of resources to health care.

Accepted Answer

A) True 
 B)False

Question 16

Health maintenance organizations (HMOs)

Accepted Answer

A)  are based on the traditional fee-for-service system of paying physicians.
B)  charge a fixed amount per member, hire many of their own physicians, and provide health services only to members.
C)  are also known as preferred provider organizations.
D)  are illegal in several states.E) A) and D)
F) All of the above

Question 17

Studies in industrially advanced nations indicate that a 3 percent increase in incomes will generate a

Accepted Answer

A)  1 percent increase in the amount of health care demanded.
B)  1.5 percent increase in the amount of health care demanded.
C)  3 percent increase in the amount of health care demanded.
D)  6 percent increase in the amount of health care demanded.E) B) and C)
F) A) and D)

Question 18

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

Question 19

In 2007, approximately what percentage of people in the United States with private health insurance received it as an employer-provided benefit?

Accepted Answer

A)  35
B)  50
C)  88
D)  95E) None of the above
F) A) and C)

Question 20

The table shows the hypothetical demand and supply schedule for health care.Assume that health insurance pays two-thirds of the cost of health care.For the consumer, the price and quantity of health care consumed would then be

Accepted Answer

A)  $300 and 400 units.
B)  $300 and 600 units.
C)  $200 and 700 units.
D)  $200 and 300 units.E) A) and C)
F) None of the above

Exam 24: Health Care

(Consider This) PPACA requirements for health insurance rates created incentives for

Correct AnswerverifiedShow Answer

In 2007, approximately what percentage of people in the United States with private health insurance received it as an employer-provided benefit?

Correct AnswerverifiedShow Answer

The heavy reliance on private health insurance in the U.S.began during World War II, as a

Correct AnswerverifiedShow Answer

Singapore's health care system is identified by critics of the PPACA as one good alternative system to study and emulate.Singapore does not have which of the following characteristics?

Correct AnswerverifiedShow Answer

The so-called government tax subsidy for health insurance comes in the form of

Correct AnswerverifiedShow Answer

Roughly what portion of U.S.total health spending is paid for by private and public insurance?

Correct AnswerverifiedShow Answer

The Patient Protection and Affordable Care Act prohibits insurance companies from denying coverage to anyone on the basis of a preexisting medical condition.

Correct AnswerverifiedShow Answer

Health maintenance organizations (HMOs)

Correct AnswerverifiedShow Answer

Health maintenance organizations (HMOs) are like health clubs that operate facilities where people can exercise and get physical training.

Correct AnswerverifiedShow Answer

Studies in industrially advanced nations indicate that a 3 percent increase in incomes will generate a

Correct AnswerverifiedShow Answer

Approximately how many millions of Americans did not have health insurance coverage in 2015?

Correct AnswerverifiedShow Answer

The table shows the hypothetical demand and supply schedule for health care.Assume that health insurance pays two-thirds of the cost of health care.For the consumer, the price and quantity of health care consumed would then be

Correct AnswerverifiedShow Answer

Economists argue that in treating patients,

Correct AnswerverifiedShow Answer

Insurance exchanges

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The provision of health insurance leads to a deadweight loss due to an overallocation of resources to health care.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Since 1960, health care costs in the United States have risen absolutely but remained constant as a percentage of gross domestic product.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

A health care organization that contracts with employers to provide health insurance to their workers, and hires doctors and other groups to provide health care for the workers who are insured is a

Correct AnswerverifiedShow Answer

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