Question_Doc13_15Dec_8th

Question_Doc13_15Dec_8th

Question

28)The twin economic problems of the
U.S. health care industry are the A) rising health care costs and the declining
quality of health care services. B) rising health care costs and the rising
malpractice insurance costs.

C) rising health care costs and the
moral hazard problem in health care services. D) declining rate of immunization
rates and the rising malpractice insurance costs.

29)In the year 2010, the United
States spent about

A)16 percent of GDP on health care.

B)100 percent of GDP on health care.

C)6 percent of GDP on health care.

D)2 percent of GDP on health care.

30)Currently less than ________ of
all health care spending is paid by individuals. A) 60 percent.

B) 35 percent. C) 20 percent. D) 5
percent.

31)Which of the following is NOT a
reason for the increase in health care costs? A) the aging of the population

B) the implementation of new
technologies C) the increase in third party payments

D) the decrease in the fertility
rate

32)The federal government and
insurance companies are examples of third party A) payers for health care.

B) users of health care.

C) providers of health care. D)
observers of health care.

33)Since the
1930s, out-of-pocket payments for health care have

A)declined from about 50 to 30
percent of total payments.

B)declined from about 95 to 20
percent of total payments.

C)declined from about 70 to 30
percent of total payments.

D)not changed and remain at 70
percent of total payments.

34)Which country has the highest per
capita health care expenditures in the world? A) Canada

B) France

C) United States D) Japan

35)The health care market in the
United States is characterized by

A)considerable government
involvement.

B)third-party payment of health
care costs.

C)asymmetric information between
providers and consumers.

D)all of the above

36)Joseph decides to join the Big
State University’s football team when he learns that his health insurance will
pay for any subsequent injury. This illustrates

A) a moral hazard problem. B)
monopolistic behavior.

C) a symmetric information problem.
D) oligopolistic behavior.

37)A major benefit of a health
savings account is that it

A)combats moral hazard.

B)means more health care services
will be demanded.

C)eliminates rising health care
costs.

D)creates the incentive to see a
doctor regularly.

38) In insurance markets, moral
hazard occurs when the behavior of

A)the insured person changes in a
way that raises costs for the insurer, since the insured person no longer bears
the full costs of that behavior.

B)the insurer changes in a way that
raises costs for the insured person, since the insurer no longer bears the full
costs of that behavior.

C)the insured person changes in a
way that eliminates rising health care costs for the insurer, since the insured
person no longer bears the full costs of that behavior.

D)the insured person has an
incentive to under consume medical services, simply because the insured person
no longer bears the full cost of medical services.

39) As a result of moral hazard,

A)both physicians and hospitals
order more procedures.

B)physicians and hospital
administrators have no incentive to raise costs.

C)patients increasingly have to
worry about the expense of operations and other medical procedures.

D)both physicians and hospitals have
a financial interest in trying to keep hospital costs down.

40)All of the following are key
features of the new the federal government’s national health care program
EXCEPT

A) people must either purchase
health insurance or pay a fine to the federal government. B) a young person in
good health can opt not to purchase health insurance without penalty. C) firms
with at least 50 employees must either provide health insurance or pay fines
when uninsured employees receive tax subsidies to purchase insurance.

D) Government-directed exchanges
will assist in matching individuals and small businesses with health insurance
policies that satisfy government requirements.

41)Which of the following is
an individual mandate in the new the federal government’s new
national health

care program?

A) Under the new program, the
federal government will coordinate the establishment of health insurance
exchanges.

B) Firms with at least 50 employees
must either provide health insurance or pay fines when uninsured employees
receive tax subsidies to purchase insurance.

C) A tax rate of 3.8 percent will be
assessed on nearly all earnings above $200,000 per year for individuals and
above $250,000 per year for married couples.

D) Nearly all U.S. residents must
either purchase health insurance coverage or pay a fine of up to $750 per year
for an individual (up to $2,250 per year for a family).

42)Which of the following is
an employer mandate in the new the federal government’s new national
health

care program?

A) Under the new program, the
federal government will coordinate the establishment of health insurance
exchanges.

B) A tax rate of 3.8 percent will be
assessed on nearly all earnings above $200,000 per year for individuals and
above $250,000 per year for married couples.

C) Firms with at least 50 employees
must either provide health insurance or pay fines when uninsured employees
receive tax subsidies to purchase insurance.

D) Nearly all U.S. residents must
either purchase health insurance coverage or pay a fine of up to $750 per year
for an individual (up to $2,250 per year for a family).

43)How will the new federal government’s
new national health care program be funded?

A)The federal government will charge
all participants of health insurance exchanges 3.8%.

B)Firms with at least 50 employees
must pay an annual fine of up to $750 per employee regardless of coverage.

C)A tax rate of 3.8 percent will be
assessed on nearly all earnings above $200,000 per year for individuals and
above $250,000 per year for married couples.

D)Nearly all U.S. residents will pay
a fine of up to $750 per year for an individual (up to $2,250 per year for a
family) regardless of coverage.

44) The new federal government’s
national health care program imposes the following regulations on health care
insurers EXCEPT

A)health insurers must cover all who
apply, including people who already have health problems.

B)all new plans must cover certain
preventive services such as mammograms and colonoscopies but must be paid 100%
by patients.

C)a ceiling is imposed on the rate
of increase in health insurance prices charged to elderly people.

D)insurance companies will be
prohibited from imposing lifetime dollar limits on essential benefits, like
hospital stays.

45)Government agencies to which the
national health care program assigns the task of assisting individuals,
families, and small businesses in identifying health insurance policies to
purchase are known as

A) health care exchanges. B) markets
for health care.

C) health insurance regulations. D)
health insurance mandates.

46)Which of the following is NOT a
subsidy in the new the federal government’s new national health care program?

A) Families with incomes up to 133%
of the federal poverty level are eligible for federal Medicaid coverage.

B) Families with incomes up to 400%
of the federal poverty level are eligible for thousands of dollars in tax
subsidies per year (amounts vary with family incomes).

C) Tax credits are available to
businesses providing health insurance to 25 or fewer workers and paying annual
salaries averaging no more than $50,000.

D) A special subsidy rate of 3.8% is
applied to nearly all income earnings above $200,000 for individuals or
$250,000 for married couples.

47)Once the national health care
program goes into effect and more people will pay fewer of their health care
expenses out of their own pockets than they did previously, we can expect A)
the quantity of health care services demanded will increase.

B) the quantity of health care
services demanded will decrease. C) the quantity of health care services
supplied will increase. D) the quantity of health care services supplied will
decrease.

48)Once the national health care
program goes into effect, we can expect A) total expenditures on health care
will decrease.

B) more individuals will have more
incentives to make decisions that promote better health. C) total expenditures
on health care will increase.

D) moral hazard will decrease.

49)Once the national health care
program goes into effect, we can expect

A)the quantity of health care
services supplied will increase.

B)total expenditures on health care
will decrease.

C)more individuals will pay more out
of pocket expenses.

D)moral hazard will increase.

50)The effects of the national
health care program on labor markets will A) lower the effective wage rate that
they must pay for each unit of labor. B) decrease the marginal revenue product
of labor.

C) increase the marginal revenue
product of labor.

D) move upward along
their downward-sloping marginal-product-of-labor curve.

51)The effects of the national
health care program on labor markets will

A)increase the quantity supplied of
labor.

B)decrease the quantity supplied of
labor.

C)increase the quantity demanded for
labor.

D)decrease the quantity demanded for
labor.

52)The effects of the national
health care program on goods and services markets will A) increase the marginal
cost of the firm.

B) increase the quantity produced of
the firm.

C) consumers will pay lower prices
for many goods and services. D) decrease the quantity demanded for all goods
and services.

53)Based on most observations, what
are the effects on government budgets from the national health care program?

A) Tax revenues will not flow into
the new program immediately.

B) The federal government ultimately
will have to search for ways to reduce its health care expenditures .

C) Federal government expenditures
on the program are being phased in immediately.

D) the federal government ultimately
will lower taxes since the program’s cost will decline over time.

54)Why have health care costs risen
so much in recent years?

55) “It is difficult to compare
over time health care expenditures, costs, and output.” Do you agree or
disagree? Why?

56) How is moral hazard related to
health care?

Question_Doc13_15Dec_8th


Attachments
Question_Doc13_15Dec_8th_-_Answer.docx (15.58 KB)

Preview: program, xxx federal xxxxxxxxxx will coordinate xxx establishment of xxxxxx insurance xxxxxxxxx xx A xxx rate of x 8 percent xxxx be xxxxxxxx xx nearly xxx earnings above xxxxxxxx per year xxx individuals xxx xxxxx $250,000 xxx year for xxxxxxx couples C) xxxxx with xx xxxxx 50 xxxxxxxxx must either xxxxxxx health insurance xx pay xxxxx xxxx uninsured xxxxxxxxx receive tax xxxxxxxxx to purchase xxxxxxxxx D) xxxxxx xxx U x residents must xxxxxx purchase health xxxxxxxxx coverage xx xxx a xxxx of up xx $750 per xxxx for xx xxxxxxxxxx (up xx $2,250 per xxxx for a xxxxxxx Answer: x xxxxxx will xxx new federal xxxxxxxxxxxx new national xxxxxx care xxxxxxx xx funded?A)The xxxxxxx government will xxxxxx all participants xx health xxxxxxxxx xxxxxxxxx 3 xx B)Firms with xx least 50 xxxxxxxxx must xxx xx annual xxxx of up xx $750 per xxxxxxxx regardless xx xxxxxxxx C)A xxx rate of x 8 percent xxxx be xxxxxxxx xx nearly xxx earnings above xxxxxxxx per year xxx individuals xxx xxxxx $250,000 xxx year for xxxxxxx couples D)Nearly xxx U x xxxxxxxxx will xxx a fine xx up to xxxx per xxxx xxx an xxxxxxxxxx (up to xxxxxx per year xxx a xxxxxxx xxxxxxxxxx of xxxxxxxx Answer: C xxx The new xxxxxxx government’s xxxxxxxx xxxxxx care xxxxxxx imposes the xxxxxxxxx regulations on xxxxxx care xxxxxxxx xxxxxxxxxxxxxx insurers xxxx cover all xxx apply, including xxxxxx who xxxxxxx xxxx health xxxxxxxx B)all new xxxxx must cover xxxxxxx preventive xxxxxxxx xxxx as xxxxxxxxxx and colonoscopies xxx must be xxxx 100% xx xxxxxxxx C)a xxxxxxx is imposed xx the rate xx increase xx xxxxxx insurance xxxxxx charged to xxxxxxx people D)insurance xxxxxxxxx will xx xxxxxxxxxx from xxxxxxxx lifetime dollar xxxxxx on essential xxxxxxxxx like xxxxxxxx xxxxx Answer: x 45)Government agencies xx which the xxxxxxxx health xxxx xxxxxxx assigns xxx task of xxxxxxxxx individuals, families, xxx small xxxxxxxxxx xx identifying xxxxxx insurance policies xx purchase are xxxxx asA) xxxxxx xxxx exchanges xx markets for xxxxxx care C) xxxxxx insurance xxxxxxxxxxx xx health xxxxxxxxx mandates Answer: xxxxxxxxx of the xxxxxxxxx is xxx x subsidy xx the new xxx federal government’s xxx national xxxxxx xxxx program?A) xxxxxxxx with incomes xx to 133% xx the xxxxxxx xxxxxxx level xxx eligible