Question 1

What would be the effect of having no health insurance available?

Accepted Answer

A)  The quantity of health care would be set where the marginal benefit and marginal cost are equal.
B)  Excess demand for health care would be the result because the quantity supplied would be at a level where the marginal benefit exceeds the marginal cost.
C)  Excess supply for health care would be the result because the quantity supplied would be at a level where the marginal benefit would be below the marginal cost.
D)  The quantity of health care would be at an inefficient level.

Question 2

Which of the following is an example of the "moral hazard of health insurance"?

Accepted Answer

A)  An increase in the number of surgeries prescribed for benign prostate disease beyond the point at which the marginal benefit equals the marginal cost
B)  A decreased willingness of individuals to go to the doctor for minor ailments because of increases in coinsurance rates
C)  An underallocation of resources to medical care because of monopoly power of hospitals
D)  Experience rating of health insurance groups by health insurers

Question 3

In the United States, individuals pay approximately what percent of the cost of their medical care directly to providers?

Accepted Answer

A)  100 percent
B)  50 percent
C)  14 percent
D)  zero

Question 4

A third-party payment system for health care:

Accepted Answer

A)  results because of externalities in the production of health care services.
B)  encourages more than the efficient amount of resources to be allocated to health care.
C)  encourages patients and health care providers to economize on the use of health care resources.
D)  means that patients pay full price for health care services they consume.

Question 5

Because of third-party payment for services in the market for health care, the price paid by buyers is less than the payment sellers receive, and the marginal social cost of health care exceeds its mar?ginal social benefit.

Accepted Answer

A) True 
 B)False

Question 6

Asymmetric information in the market for health care occurs when sellers of medical care are better informed about cost and quality of care than buyers.

Accepted Answer

A) True 
 B)False

Question 7

As of 2019, the American system of health care is being financed by a mix of private and government insurance programs that pay over 90 percent of the health care bills for U.S.citizens.

Accepted Answer

A) True 
 B)False

Question 8

Third-party payments for health care services increase the quantity of health care demanded by reducing out-of-pocket costs to patients.

Accepted Answer

A) True 
 B)False

Question 9

Half of Americans do not have health insurance coverage.

Accepted Answer

A) True 
 B)False

Question 10

Approximately 18 percent of GDP was allocated to provision of health care in the United States as of 2016.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following subsidizes private provision of health insurance?

Accepted Answer

A)  Medicare
B)  Medicaid
C)  Public Health Service
D)  Tax exclusion of the value of employer-provided health insurance to workers

Question 12

The percent of total health care costs in the United States paid for by governments is approximately:

Accepted Answer

A)  90 percent.
B)  44 percent.
C)  25 percent.
D)  10 percent.

Question 13

Which of the following is true about the Medicare program in the United States?

Accepted Answer

A)  It is only available to those who pass a means test.
B)  It is available to all citizens over the age of 65.
C)  The costs are completely financed by fees paid by insurees.
D)  It places no limits on reimbursement to medical care providers.

Question 14

Which of the following could help slow the rate of increase of spending on health care in the United States?

Accepted Answer

A)  A reduction in the deductibles on private health insurance policies
B)  An increase in the coinsurance rate on health insurance and subjecting a larger volume of services to coinsurance
C)  Extension of Medicaid insurance to all persons who are poor
D)  A reduction in the coinsurance rate on health insurance and subjecting a smaller volume of services to coinsurance

Question 15

Which of the following programs accounts for the greatest amount of government expenditures on public health in the United States?

Accepted Answer

A)  Medicare
B)  Worker's compensation
C)  Public Health Service
D)  Medical research

Question 16

If the quantity of health care is more than the efficient quantity, what is the consequence?

Accepted Answer

A)  Some who would have access at the efficient level will not have access to health care.
B)  The health care will suffer in quality.
C)  Capital could be more efficiently spent elsewhere, leading to less overall productivity.
D)  Marginal costs and marginal benefits will be lower.

Question 17

In the United States the government pays the health bills of 90 percent of the population.

Accepted Answer

A) True 
 B)False

Question 18

Medicare is a government program of health insurance for the elderly.

Accepted Answer

A) True 
 B)False

Question 19

Which is not reason for escalating health care costs in the United States?

Accepted Answer

A)  Increase in malpractice insurance
B)  Cross-subsidization of patients who cannot pay for health care or insurance
C)  Overuse of new technology
D)  Both (b)  and (c)  are correct.

Question 20

The government program that provides the health insurance to the poor in the United States is called:

Accepted Answer

A)  national health insurance.
B)  Medicare.
C)  Medicaid.
D)  employer-provided health insurance.

Exam 9: Government and Health Care

In the United States, individuals pay approximately what percent of the cost of their medical care directly to providers?

Correct AnswerverifiedShow Answer

Approximately 18 percent of GDP was allocated to provision of health care in the United States as of 2016.

Correct AnswerverifiedShow Answer

Asymmetric information in the market for health care occurs when sellers of medical care are better informed about cost and quality of care than buyers.

Correct AnswerverifiedShow Answer

Which of the following programs accounts for the greatest amount of government expenditures on public health in the United States?

Correct AnswerverifiedShow Answer

A third-party payment system for health care:

Correct AnswerverifiedShow Answer

Half of Americans do not have health insurance coverage.

Correct AnswerverifiedShow Answer

The percent of total health care costs in the United States paid for by governments is approximately:

Correct AnswerverifiedShow Answer

As of 2019, the American system of health care is being financed by a mix of private and government insurance programs that pay over 90 percent of the health care bills for U.S.citizens.

Correct AnswerverifiedShow Answer

Medicare is a government program of health insurance for the elderly.

Correct AnswerverifiedShow Answer

Which of the following is true about the Medicare program in the United States?

Correct AnswerverifiedShow Answer

If the quantity of health care is more than the efficient quantity, what is the consequence?

Correct AnswerverifiedShow Answer

Which is not reason for escalating health care costs in the United States?

Correct AnswerverifiedShow Answer

Which of the following is an example of the "moral hazard of health insurance"?

Correct AnswerverifiedShow Answer

Third-party payments for health care services increase the quantity of health care demanded by reducing out-of-pocket costs to patients.

Correct AnswerverifiedShow Answer

What would be the effect of having no health insurance available?

Correct AnswerverifiedShow Answer

Which of the following subsidizes private provision of health insurance?

Correct AnswerverifiedShow Answer

Which of the following could help slow the rate of increase of spending on health care in the United States?

Correct AnswerverifiedShow Answer

The government program that provides the health insurance to the poor in the United States is called:

Correct AnswerverifiedShow Answer

In the United States the government pays the health bills of 90 percent of the population.

Correct AnswerverifiedShow Answer

Because of third-party payment for services in the market for health care, the price paid by buyers is less than the payment sellers receive, and the marginal social cost of health care exceeds its mar?ginal social benefit.

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

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