Deck 24: Health Care

Question 1

A co-payment is the

A)percentage of a covered expense that an individual will have to pay (after the deductible is met.)
B)percentage of a covered expense that an insurance company will have to pay (after the deductible is met).
C)amount of covered expense that an individual will have to pay before the insurance company pays anything.
D)amount of covered expense that an insurance company will have to pay before the individual pays anything.

Answer 1

A

Question 2

Medicaid is the Federal Government program that provides health insurance to the

A)poor.
B)injured.
C)elderly.
D)handicapped.

Answer 2

A

Question 3

The majority of people with private health insurance get it

A)individually.
B)in groups.
C)at the grocery store.
D)along with one other person.

Answer 3

B

Question 4

The maximum out of pocket is the

A)percentage of a covered expense that an individual will have to pay (after the deductible is met).
B)percentage of a covered expense that an insurance company will have to pay (after the deductible is met).
C)most of covered expense that an individual will have to pay during a year.
D)amount of covered expense that an insurance company will have to pay before the individual pays anything.

Question 5

Suppose someone knew the probability of incurring a $10,000 medical expense was 5% and the odds of being healthy and incurring no expenses was 95%. If they used that information to compare the expected cost to them ($500)with the $400 premium it would cost to get full coverage and decided not to buy the insurance then economists would say they are

A)irrational.
B)risk loving.
C)risk averse.
D)risk neutral.

Question 6

In 2014 the percentage of people covered by health insurance for the entire year was

A)40%.
B)65%.
C)83%.
D)95%.

Question 7

In 2014 the percentage of people who were not covered by health insurance for the entire year was

A)10%.
B)16%.
C)25%.
D)55%.

Question 8

Combined, in 2014 Medicare and Medicaid covered

A)6 million people.
B)25 million people.
C)105 million people.
D)143 million people.

Question 9

Medicare is the Federal Government program that provides health insurance to the

A)poor.
B)injured.
C)elderly.
D)unemployed.

Question 10

The percentage of people without health insurance at some time during 2014 was

A)76%.
B)17%.
C)8%.
D)2%.

Question 11

People generally buy insurance of any kind because they are

A)risk neutral.
B)risk loving.
C)risk averse.
D)risk seeking.

Question 12

In 2014, the U.S. spends approximately ____ of GDP on health care.

A)1% (1/100th)
B)16% (1/6th)
C)25% (1/4th)
D)33% (1/3r

Question 13

Being risk averse means that you would be willing to pay _____ than the expected outcome in order to guarantee an outcome.

A)less
B)more
C)no more or less
D)more or less

Question 14

Government spent approximately _____ on health care in 2014.

A)$1,400 billion
B)$1,400 trillion
C)$431 million
D)$7.66 million

Question 15

A deductible is the

A)percentage of a covered expense that an individual will have to pay.
B)percentage of a covered expense that an insurance company will have to pay.
C)amount of covered expense that an individual will have to pay before the insurance company pays anything.
D)amount of covered expense that an insurance company will have to pay before the individual pays anything.

Question 16

The government spends ___ of all health care dollars in the U.S.

A)10%
B)25%
C)approximately half
D)100%

Question 17

Government spending accounts for _________ the private market in health care expenditures.

A)much more than
B)slightly more than
C)slightly less than
D)much less than

Question 18

Which Federal Government program(s)pay(s)for the health needs of people who are old and poor?

A)Medicare
B)Medicaid
C)WIC
D)Medicare and Medicaid

Question 19

Suppose someone knew that the probability of incurring a $10,000 medical expense was 5% and the odds of being healthy and incurring no expenses was 95%. If they used that information to compare the expected cost to them ($500)with the $600 premium it would cost to get full coverage and decided to buy the insurance then economists would say they are

A)Irrational.
B)risk loving.
C)risk averse.
D)risk neutral.

Question 20

Suppose someone knew that the probability of incurring a $10,000 medical expense was 5% and the odds of being healthy and incurring no expenses was 95%. If they used that information to compare the expected cost to them ($500)with the $500 premium it would cost to get full coverage and decided to buy the insurance but only if the price went no higher then economists would say they are

A)irrational.
B)risk loving.
C)risk averse.
D)risk neutral.

Question 21

If the deductible is $500 and the co-payment is 20%, on a covered expense of $1000 the individual will pay _____ and their insurance company will pay ______.

A)$500; $500
B)$500; $600
C)$600; $400
D)$400; $600

Question 22

Fee-for-service insurance

A)is typically less expensive than an HMO covering the same illnesses.
B)has fewer meddlesome bureaucrats than an HMO.
C)does not allow patients to pick their own doctor.
D)requires you pay for services before they are performed.

Question 23

If the deductible is $200 and the co-payment is 20%, on a covered expense of $1200 the individual will pay _____ and their insurance company will pay ______.

A)$400;$800
B)$200; $1000
C)$800; $400
D)$600; $600

Question 24

If the deductible is $400 and the co-payment is 25%, on a covered expense of $800 the individual will pay _____ and their insurance company will pay ______.

A)$500; $500
B)$500; $300
C)$300; $500
D)$500; $100

Question 25

HMO insurance

A)is less expensive than fee-for-service insurance.
B)has more meddlesome bureaucrats than fee-for service.
C)restricts doctor choice to primary care physicians.
D)all of the options are correct.

Question 26

Fee-for-service insurance

A)is typically less expensive than an HMO covering the same illnesses.
B)has more meddlesome bureaucrats than an HMO.
C)allows patients to pick their own doctor.
D)requires you pay for services before they are performed.

Question 27

Fee-for-service insurance

A)is typically more expensive than an HMO covering the same illnesses.
B)has fewer meddlesome bureaucrats than an HMO.
C)allows patients to pick their own doctor.
D)all of the options are correct.

Question 28

A physician whose job is to determine if a patient needs to be referred to a specialist is called

A)an intern.
B)a primary care physician.
C)an HMO doctor.
D)a primatologist.

Question 29

HMO insurance

A)is more expensive than fee-for-service insurance.
B)has more meddlesome bureaucrats than fee-for service.
C)does not restrict doctor choice to primary care physicians.
D)requires all care be taken in hospitals.

Question 30

If a person has a deductible of $300 and must pay $500 out of a $1,300 health care expense in a year, then their co-payment rate is

A)5%.
B)10%.
C)20%.
D)50%.

Question 31

If a person must pay the first $300 of covered health care expenses in a year, this is called their

A)co-payment.
B)deductible.
C)lifetime maximum.
D)maximum out-of-pocket.

Question 32

Fee-for-service insurance

A)is typically more expensive than an HMO covering the same illnesses.
B)has more meddlesome bureaucrats than an HMO.
C)does not allow patients to pick their own doctor.
D)requires you pay for services before they are performed.

Question 33

If a person has a deductible of $300 and must pay $400 out of a $1,300 health care expense in a year, then their co-payment rate is

A)5%.
B)10%.
C)20%.
D)50%.

Question 34

If a person must pay 20% of a covered health care expense, this is called their

A)co-payment.
B)deductible.
C)lifetime maximum.
D)maximum out-of-pocket.

Question 35

HMO insurance

A)is less expensive than fee-for-service insurance.
B)has fewer meddlesome bureaucrats than fee-for service.
C)does not restrict doctor choice to primary care physicians.
D)requires all care be taken in hospitals.

Question 36

Which of the following was made illegal under the Patient Protection and Affordable Care Act

A)co-payment.
B)deductible.
C)lifetime maximum.
D)maximum out-of-pocket.

Question 37

The lifetime maximum is the

A)percentage of a covered expense that an individual will have to pay (after the deductible is met).
B)percentage of a covered expense that an insurance company will have to pay (after the deductible is met).
C)most of covered expenses that an individual will have to pay during a year.
D)most of covered expenses that an insurance company will pay on an individual over their lifetime. It was made illegal by the PPACA.

Question 38

If the deductible is $300 and the co-payment is 20%, on a covered expense of $800 the individual will pay _____ and their insurance company will pay ______.

A)$300; $500
B)$300; $400
C)$400; $400
D)$500; $300

Question 39

If a person must pay for all health care expenses in excess of $1,000,000, this is called their

A)co-payment.
B)deductible.
C)lifetime maximum.
D)maximum out-of-pocket.

Question 40

If a person does not have to pay more than $3,000 in a year for health care expenses, this is called their

A)co-payment.
B)deductible.
C)lifetime maximum.
D)maximum out-of-pocket.

Question 41

Part B of Medicare covers

A)prescriptions taken out of the hospital.
B)only charges incurred in a hospital.
C)doctor visits outside of a hospital.
D)all health care needs.

Question 42

When creating market demand curves for privately produced and privately consumed goods we

A)add the quantity demanded at each price.
B)add the price paid at each quantity.
C)take an average of the quantity demanded at each price.
D)take an average of the price paid at each quantity.

Question 43

Part A of Medicare covers

A)prescriptions taken out of the hospital.
B)only charges incurred in a hospital.
C)doctor visits outside of a hospital.
D)all health care needs.

Question 44

The Children's Health Insurance Program is designed to

A)replace Medicaid for children.
B)replace Medicaid for families with children.
C)augment Medicaid by insuring the children of working (but low income)families who have no insurance.
D)insure all children regardless of circumstance.

Question 45

Publicly provided health insurance for the poor will

A)raise the price of health care to the non-poor.
B)raise the level of health care consumed by the non-poor.
C)increase the total amount of health care consumed.
D)raise the price of health care to the non-poor and increase the total amount of health care consumed.

Question 46

Publicly provided health insurance for the poor will

A)lower the price of health care to the non-poor.
B)raise the level of health care consumed by the poor.
C)decrease the total amount of health care consumed.
D)lower the price of health care to the non-poor and decrease the total amount of health care consumed.

Question 47

Publicly provided health insurance for the poor will

A)lower the price of health care to the non-poor.
B)raise the level of health care consumed by the non-poor.
C)increase the total amount of health care consumed.
D)lower the price of health care to the non-poor and increase the total amount of health care consumed.

Question 48

When creating a demand curve for a good where one group gets the good for free and another group must pay the market price you must

A)add the quantity demanded for each group at each price.
B)add the price paid at each quantity.
C)take an average of the quantity demanded at each price.
D)add the amount that the first group wants (when it is available to them free)to the quantity demanded by the second group at each price.

Question 49

Which public health care program is divided between "part A" and "part B"?

A)Medicare
B)Medicaid
C)U)S. Health
D)WIC

Question 50

Effective AIDS drugs did not exist in the early 1980s. When they became available they were very expensive. When people use these facts to say that the price of AIDS drugs has increased economists generally

A)agree.
B)suggest they are confusing price increases with quality increases.
C)note that the drugs are not as effective as advertised.
D)stay out of this discussion.

Question 51

The Children's Health Insurance Program was created in the

A)1940s.
B)1960s.
C)1980s.
D)1990s.

Question 52

Health Care is not like other goods and services because

A)if a newly discovered cure costs a lot we say, incorrectly, that its price has risen.
B)we tend to like to go to the doctor and do it for enjoyment whereas we hate going to the dentist.
C)people do not have to pay for it.
D)there is no motive to consume more than is economically efficient.

Question 53

If, over the years, the standard night in a hospital has risen in price from $200 a night to $1000 a night but now also includes amenities, then economists insist that the price

A)has risen $800 over that period.
B)has definitely risen but by less than $800 over that period.
C)has definitely risen and by more than $800 over that period.
D)may have risen or fallen depending on the value of the amenities.

Question 54

Publicly provided health insurance for the poor will

A)lower the price of health care to the poor.
B)lower the level of health care consumed by the poor.
C)increase the total amount of health care consumed.
D)lower the price of health care to the non-poor and increase the total amount of health care consumed.

Question 55

An insurance plan that carries a low annual premium but also a low annual maximum amount that insurance will cover is called a

A)mini-med.
B)an HMO.
C)a PPO.
D)a fee for service provider.

Question 56

HMO insurance

A)is more expensive than fee-for-service insurance.
B)has fewer meddlesome bureaucrats than fee-for service.
C)restricts doctor choice to primary care physicians.
D)requires all care be taken in hospitals.

Question 57

Health Care is not like other goods and services because

A)people go to the doctor to find out what is wrong whereas they get other services knowing more about what they need.
B)we tend to like to go to the doctor and do it for enjoyment whereas we hate going to the dentist.
C)people do not have to pay for it.
D)there is no motive to consume more than is economically efficient.

Question 58

Publicly provided health insurance for the poor will

A)raise the price of health care to the non-poor.
B)raise the level of health care consumed by the non-poor.
C)decrease the total amount of health care consumed.
D)raise the price of health care to the non-poor and decrease the total amount of health care consumed.

Question 59

Health Care is not like other goods and services because

A)people go to the doctor to find out what is wrong whereas they get other services knowing more about what they need.
B)we tend to like to go to the doctor and do it for enjoyment whereas we hate going to the dentist.
C)if a newly discovered cure costs a lot we say, incorrectly, that its price has risen.
D)people go to the doctor to find out what is wrong whereas they get other services knowing more about what they need and if a newly discovered cure costs a lot we say, incorrectly, that its price has risen.

Question 60

Effective AIDS drugs did not exist in the early 1980s. When they became available they were very expensive. When people use these facts to say that the price of AIDS drugs has increased economists generally

A)agree.
B)suggest that the price actually fell.
C)note that the drugs are not as effective as advertised.
D)stay out of this discussion.

Question 61

When neither the patient nor the doctor is cost conscious as a result of health insurance, economists label this the

A)moral hazard problem.
B)the insurance fiasco.
C)risk neutrality.
D)efficiency outcome.

Question 62

If a health economist is worried that a system of health insurance will break down because of the problem of adverse selection, that economist may focus on ____ as a solution to that problem.

A)moral hazard
B)eliminating pre-existing condition clauses
C)mandation
D)lowering insurance premiums

Question 63

In terms of who employs physicians, who owns hospitals and clinics, and the role of insurance

A)single payer systems are all alike.
B)single payer systems are no different than private systems.
C)single payer systems are all private.
D)single payer systems are very different depending on the country.

Question 64

A single payer system in the United States would

A)increase availability of health care services to those who are currently uninsured.
B)necessitate a tax cut.
C)likely decrease the waiting time for certain procedures.
D)likely fail because no other nations have tried it.

Question 65

On health care issues, the U.S. generally spends

A)much more as a percentage of GDP than other nations.
B)almost exactly the same percentage of GDP as other nations.
C)much less as a percentage of GDP as other nations.
D)a more rapidly decreasing percentage of GDP than other nations.

Question 66

Moral Hazard

A)is the fact that having insurance increases the demand for the good.
B)is the fact that people will consume more health care when they pay only a percentage.
C)does not apply to health insurance.
D)is the fact that having insurance increases the demand for the good and it does not apply to health insurance.

Question 67

Nations with single payer systems typically have

A)lower tax rates than exist in the U.S.
B)lower life expectancies than in the U.S.
C)better access to high-tech medical solutions than in the U.S.
D)relative equality in the access to basic care.

Question 68

Nations with single payer systems typically have

A)higher tax rates than exist in the U.S.
B)lower life expectancies than in the U.S.
C)better access to high-tech medical solutions than in the U.S.
D)serious inequality in the access to basic care.

Question 69

Many economists note that the shortage of blood in several rare types is, at least in part, attributable to the fact that the price of blood is

A)determined by market forces.
B)kept too high.
C)right at equilibrium.
D)fixed at zero.

Question 70

If a health economist is worried that a system of health insurance will break down because, when combined with policies outlawing the use of an individual's health information in setting coverage and rates, the sickest will be the only one who will want insurance and the healthiest will go without insurance, that economist is focused on the problem of

A)moral hazard.
B)adverse selection.
C)mandation.
D)lack of universal coverage.

Question 71

Relative to the U.K., Japan, Germany and France, life expectancy in the U.S. is

A)higher by more than ten years.
B)higher by one to five years.
C)lower by more than ten years.
D)lower by one to five years.

Question 72

When an insurance company pays 20% of the bill for health care services, this

A)increases supply.
B)reduces demand.
C)makes demand less elastic.
D)reduces demand and makes demand less elastic.

Question 73

A cross-country analysis of health expenditures and statistics suggests that expenditures (as a percentage of GDP)in the U.S. are ____ than the rest of the world, and that treatment in the U.S. is

A)higher; less effective in some areas and more effective in other areas.
B)lower; less effective in some areas and more effective in other areas.
C)higher; unambiguously better in all areas
D)higher; unambiguously worse in all areas

Question 74

If a health economist is worried that a system of health insurance will break down because those with health insurance will be less likely to eat right and exercise because they will not be financially liable for the health care costs that follow, that economist is focused on the problem of

A)moral hazard.
B)adverse selection.
C)mandation.
D)lack of universal coverage.

Question 75

When an insurance company pays 20% of the bill for health care services, this

A)reduces demand.
B)reduces supply.
C)makes demand less elastic.
D)reduces demand and makes demand less elastic.

Question 76

Nations with single payer systems typically have

A)lower tax rates than exist in the U.S.
B)lower life expectancies than in the U.S.
C)worse access to high-tech medical solutions than in the U.S.
D)serious inequality in the access to basic care.

Question 77

In terms of the percentage of health expenditures spent by governments, single payer systems are

A)more than 100%.
B)by definition 100%.
C)typically between 60% and 90%.
D)typically under 50%.

Question 78

Many economists note that the shortage of organs is, at least in part, attributable to the fact that the price of organs is

A)determined by market forces.
B)kept too high.
C)right at equilibrium.
D)fixed at zero.

Question 79

A cross-country analysis of health statistics suggests that countries with single payer systems have infant mortality rates that are _____ than those rates for the U.S. and survival rates for breast and prostate cancer that are _____ than those rates for the U.S.

A)higher, higher
B)higher, lower
C)lower, higher
D)lower, lower

Question 80

Nations with single payer systems typically have

A)lower tax rates than exist in the U.S.
B)higher life expectancies than in the U.S.
C)better access to high-tech medical solutions than in the U.S.
D)serious inequality in the access to basic care.