Question 1

Subsidies for those required to purchase health insurance under the personal mandate provision of the PPACA are

Accepted Answer

A)  limited to those whose income is less than 133 percent of the federal poverty line.
B)  limited to those whose income is at or below the federal poverty line.
C)  provided to some individuals in the upper half of the income distribution.
D)  a fixed amount per person for those eligible to receive the subsidies.E) None of the above
F) All of the above

Question 2

Which of the following nations has the highest percentage of its GDP spent on health care?

Accepted Answer

A)  Singapore
B)  Canada
C)  France
D)  United StatesE) A) and C)
F) A) and B)

Question 3

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 two-thirds of the equilibrium price, the immediate price to the consumer and quantity of health care demanded would be

Accepted Answer

A)  $3,000 and 7,000.
B)  $4,000 and 10,000.
C)  $1,000 and 16,000.
D)  $2,000 and 11,000.E) A) and B)
F) C) and D)

Question 4

Access to health care is a highly publicized problem in the U.S. The number of Americans in 2017 who did not have health insurance coverage was approximately

Accepted Answer

A)  12 million.
B)  29 million.
C)  85 million.
D)  121 million.E) All of the above
F) C) and D)

Question 5

If labor productivity in the health care industry rises very slowly relative to wages and salaries in the industry, this would tend to

Accepted Answer

A)  increase the demand for health care.
B)  decrease the demand for health care.
C)  increase the supply of health care.
D)  increase the cost of health care.E) A) and C)
F) C) and D)

Question 6

Indiana's health care plan for state employees

Accepted Answer

A)  has reduced total spending on health care, but at the cost of employees forgoing important preventative care procedures.
B)  has reduced total spending on health care without people forgoing important preventative care procedures.
C)  has increased total spending on health care, but with the benefit of increasing the overall health of state workers, who now take greater advantage of preventative care procedures.
D)  has reduced health care spending for those who participate in the plan, but only a small (less than 10 percent) percentage of state employees actually use the system.E) B) and C)
F) All of the above

Question 7

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

Accepted Answer

A)  162
B)  224
C)  580
D)  6,200E) A) and B)
F) None of the above

Question 8

In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about

Accepted Answer

A)  +3.
B)  +6.
C)  −2.
D)  +1.E) B) and C)
F) None of the above

Question 9

One of the main differences between PPOs and HMOs is that

Accepted Answer

A)  HMO physicians charge on a traditional fee-for-service basis, while PPO physicians do not.
B)  HMOs are usually for-profit organizations, whereas PPOs are not.
C)  PPOs employ their own doctors, whereas HMOs do not.
D)  PPO physicians charge on a traditional fee-for-service basis, while HMOs do not.E) A) and D)
F) A) and C)

Question 10

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. The rationale for doing this includes the following, except

Accepted Answer

A)  saving taxpayers money.
B)  inducing health care providers to serve Medicare and Medicaid patients.
C)  making hospitals and other providers become more profitable.
D)  putting downward pressure on health care costs.E) B) and D)
F) None of the above

Question 11

What is the primary purpose of the insurance exchanges set up by the PPACA?

Accepted Answer

A)  provide direct care to those without employer-provided health insurance
B)  allow those with employer-provided health insurance to trade for policies that are more cost effective
C)  sell government-provided health insurance to those lacking employer coverage
D)  promote competition among insurance companies to help reduce the growth in health care spendingE) C) and D)
F) All of the above

Question 12

Theoretically, the effect of private health insurance on the price and quantity of health care consumed

Accepted Answer

A)  is the same as that of public health insurance.
B)  is a lower price and a higher quantity compared to public health insurance.
C)  is a higher price and a lower quantity compared to public health insurance.
D)  is a lower price and a lower quantity compared to public health insurance.E) B) and C)
F) All of the above

Question 13

Health care spending accounted for what percentage of U.S. GDP in 1960 and in 2017?

Accepted Answer

A)  5.0 percent and 5.45 percent, respectively
B)  10.0 percent and 12.2 percent, respectively
C)  5.0 percent and 17.9 percent, respectively
D)  20.0 percent and 33.5 percent, respectivelyE) All of the above
F) B) and C)

Question 14

A unit set up by insurance companies that requires hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan is a

Accepted Answer

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

Question 15

Employer-provided private health insurance began in the United States because

Accepted Answer

A)  the rising threat of socialism prompted U.S. companies to provide insurance to dampen enthusiasm for socialist reform.
B)  during World War II, wage and price controls forced employers to use nonwage forms of compensation to attract workers.
C)  poor health conditions at the beginning of the 20th century prompted the U.S. government to require new companies to offer health insurance to employees.
D)  the American Medical Association successfully lobbied the U.S. government to provide subsidies to companies offering private health insurance to employees.E) C) and D)
F) None of the above

Question 16

In the health care market,

Accepted Answer

A)  demand has increased relative to supply.
B)  supply has increased relative to demand.
C)  neither demand nor supply has changed significantly in the past two decades.
D)  the concepts of demand and supply are irrelevant.E) A) and B)
F) A) and C)

Question 17

Identify the four peculiarities of the health care market.

Accepted Answer

Ethical and equity considerations: Ethic...

Question 18

Preferred provider organizations (PPOs)are a type of managed-care organization.

Accepted Answer

A) True 
 B)False

Question 19

Other things equal, and given that the elasticity of demand for health care is 0.2, a 10 percent increase in the price of health care in the United States will reduce the quantity of health care demanded by about

Accepted Answer

A)  1 percent.
B)  2 percent.
C)  5 percent.
D)  20 percent.E) A) and B)
F) A) and C)

Question 20

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

Exam 24: Health Care

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. The rationale for doing this includes the following, except

Correct AnswerverifiedShow Answer

If labor productivity in the health care industry rises very slowly relative to wages and salaries in the industry, this would tend to

Correct AnswerverifiedShow Answer

Which of the following nations has the highest percentage of its GDP spent on health care?

Correct AnswerverifiedShow Answer

In the health care market,

Correct AnswerverifiedShow Answer

One of the main differences between PPOs and HMOs is that

Correct AnswerverifiedShow Answer

Theoretically, the effect of private health insurance on the price and quantity of health care consumed

Correct AnswerverifiedShow Answer

What is the primary purpose of the insurance exchanges set up by the PPACA?

Correct AnswerverifiedShow Answer

Identify the four peculiarities of the health care market.

Correct AnswerverifiedEthical and equity considerations: Ethic...View AnswerShow 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 two-thirds of the equilibrium price, the immediate price to the consumer and quantity of health care demanded would be

Correct AnswerverifiedShow Answer

Employer-provided private health insurance began in the United States because

Correct AnswerverifiedShow Answer

Health care spending accounted for what percentage of U.S. GDP in 1960 and in 2017?

Correct AnswerverifiedShow Answer

Preferred provider organizations (PPOs)are a type of managed-care organization.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Subsidies for those required to purchase health insurance under the personal mandate provision of the PPACA are

Correct AnswerverifiedShow Answer

Indiana's health care plan for state employees

Correct AnswerverifiedShow Answer

A unit set up by insurance companies that requires hospitals and physicians to provide discounted prices for their services as a condition for being included in the insurance plan is a

Correct AnswerverifiedShow Answer

In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about

Correct AnswerverifiedShow Answer

Access to health care is a highly publicized problem in the U.S. The number of Americans in 2017 who did not have health insurance coverage was approximately

Correct AnswerverifiedShow Answer

Other things equal, and given that the elasticity of demand for health care is 0.2, a 10 percent increase in the price of health care in the United States will reduce the quantity of health care demanded by about

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Ethical and equity considerations: Ethic...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified