Question 1

When the United States is described as having a dual system of health care, this means that

Accepted Answer

A)  government provides basic health insurance for all Americans and private insurance covers services beyond the basic level.
B)  high-quality care is provided in urban areas, but care in rural areas is of poor quality.
C)  those Americans with good insurance or substantial wealth receive world-class health care, while those without insurance receive no or low-quality health care.
D)  the high-risk segment of the population is required to have health insurance, while the low-risk sector is not.E) A) and D)
F) B) and C)

Question 2

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

Question 3

The dollar sum of costs that an insured individual must pay before the insurer begins to pay would be considered

Accepted Answer

A)  copayments.
B)  play-or-pay.
C)  fee for service.
D)  deductibles.E) B) and C)
F) All of the above

Question 4

All of the following are designed to reduce health care expenses for consumers except

Accepted Answer

A)  HMOs.
B)  PPOs.
C)  the DRG payment system.
D)  the fee-for-service system.E) B) and C)
F) B) and D)

Question 5

The price elasticity of demand for health care is such that an increase in the price of health care will

Accepted Answer

A)  decrease total health care expenditures.
B)  increase total health care expenditures.
C)  shift the demand for health care rightward.
D)  shift the demand for health care leftwarD.E) C) and D)
F) All of the above

Question 6

The major purpose of Medicare is to

Accepted Answer

A)  provide health care services to people on Social Security.
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) B) and C)
F) All of the above

Question 7

Asymmetric information in the health care market has increased the supply of health care.

Accepted Answer

A) True 
 B)False

Question 8

Given the availability of the Medicaid program, why are so many poor people uninsured?

Accepted Answer

A)  Because only a fixed percentage of the population can participate in Medicaid at any time.
B)  Because many poor people earn enough that they do not qualify for Medicaid.
C)  Because nonincome requirements screen many poor people from the program.
D)  Because only native-born Americans are eligible for the program.E) A) and B)
F) A) and C)

Question 9

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

Question 10

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) A) and C)

Question 11

All other things equal, increased concern for medical ethics will

Accepted Answer

A)  increase the demand for health care.
B)  decrease the demand for health care.
C)  increase the supply of health care.
D)  decrease the supply of health care.E) None of the above
F) A) and D)

Question 12

The increasing use of part-time and temporary workers can partly be blamed on the rising health care costs to employers.

Accepted Answer

A) True 
 B)False

Question 13

Which person in the following list is least likely to have health care insurance?

Accepted Answer

A)  a disabled person
B)  a temporary worker in a bank
C)  an accountant employed by a large corporation
D)  a person who receives Social Security benefitsE) B) and C)
F) All of the above

Question 14

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

Question 15

Insurance tends to drive up health care costs by encouraging greater use of health care resources.Why has this occurred in the United States but not in Canada or the United Kingdom?

Accepted Answer

A)  There is no health care insurance in Canada or the United Kingdom.
B)  Canada and the United Kingdom use nonprice rationing to contain costs.
C)  Canada and the United Kingdom have better health care technology that allows them to achieve lower costs than the United States.
D)  Only private insurance creates an incentive to overuse health care resources.E) None of the above
F) A) and B)

Question 16

(Consider This)  The PPACA was intended to slow growth in health care costs and expand health care coverage to all Americans.Which of the following is not one of problems that has occurred since implementation?

Accepted Answer

A)  Firms avoided the employer mandate by cutting worker hours to part-time status.
B)  The number of people uninsured has risen.
C)  Many of the state insurance exchanges have either gone bankrupt or are in serious danger of going bankrupt.
D)  Pricing requirements for health insurance sold through exchanges discouraged younger, healthier adults from enrolling.E) B) and D)
F) A) and B)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a law passed in the last 20 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 categoriesE) All of the above
F) None of the above

Question 19

Which person would most likely be eligible to receive Medicare?

Accepted Answer

A)  a student attending a state university
B)  a person receiving Social Security benefits
C)  a part-time worker at a manufacturing company
D)  a U.S.college professor teaching in another countryE) None of the above
F) A) and B)

Question 20

Payments for which of the following would not be covered by Medicare?

Accepted Answer

A)  all reasonable costs for the first 60 days of inpatient care in a hospital per "benefit period"
B)  posthospital nursing services, home health care, and hospice care for the terminally ill
C)  voluntary and subsidized medical insurance to cover physician services, lab tests, and outpatient hospital services
D)  nonprescription drugs and travel to physician offices for normal medical treatmentE) B) and C)
F) All of the above

Exam 24: Health Care

(Consider This) The PPACA was intended to slow growth in health care costs and expand health care coverage to all Americans.Which of the following is not one of problems that has occurred since implementation?

Correct AnswerverifiedShow Answer

Which person would most likely be eligible to receive Medicare?

Correct AnswerverifiedShow Answer

The dollar sum of costs that an insured individual must pay before the insurer begins to pay would be considered

Correct AnswerverifiedShow Answer

Given the availability of the Medicaid program, why are so many poor people uninsured?

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

Which person in the following list is least likely to have health care insurance?

Correct AnswerverifiedShow Answer

All of the following are designed to reduce health care expenses for consumers except

Correct AnswerverifiedShow Answer

The increasing use of part-time and temporary workers can partly be blamed on the rising health care costs to employers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The major objective of Medicaid is to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All other things equal, increased concern for medical ethics will

Correct AnswerverifiedShow Answer

Payments for which of the following would not be covered by Medicare?

Correct AnswerverifiedShow Answer

Insurance tends to drive up health care costs by encouraging greater use of health care resources.Why has this occurred in the United States but not in Canada or the United Kingdom?

Correct AnswerverifiedShow Answer

The price elasticity of demand for health care is such that an increase in the price of health care will

Correct AnswerverifiedShow Answer

One of the main differences between PPOs and HMOs is that

Correct AnswerverifiedShow Answer

Which of the following is a law passed in the last 20 years relating to health care?

Correct AnswerverifiedShow Answer

The major purpose of Medicare is to

Correct AnswerverifiedShow Answer

Asymmetric information in the health care market has increased the supply of health care.

Correct AnswerverifiedShow Answer

When the United States is described as having a dual system of health care, this means that

Correct AnswerverifiedShow Answer

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