Chapter 24 Health Care Answer Key
Multiple Choice Questions
1. Approximately how many workers are employed in the U.S. health care industry?
2. In the United States, approximately how many doctors are there per 100,000 population?
3. Employer-provided private health insurance
24-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Understand
Di f f i c u l t y : 02 Medium
Learning Objective: 24–01 Convey important facts about rising health care costs in the
United States.
Test Bank: I
To pic: The Health Care Industry
4. In 2007, approximately what percentage of people in the United States with private
health insurance received it as an employer-provided benefit?
5. Employer-provided private health insurance began in the United States because
6. Employer-provided private health insurance in the United States has resulted in
7. The twin problems of the U.S. health care industry are
8. The price of medical care in the United States has
24-4
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 24–01 Convey important facts about rising health care costs in the
United States.
Test Bank: I
To pic: The Health Care Industry
9. Which of the following statements is true about health care costs in the United States?
10. Approximately how many millions of Americans did not have health insurance
coverage in 2015?
11. When the United States is described as having a dual system of health care, this means
that
24-5
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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.
AACSB: Knowledge Application
A c c e s s i b i l i t y : Keyboard Navigation
Blooms: Understand
Di f f i c u l t y : 02 Medium
Learning Objective: 24–01 Convey important facts about rising health care costs in the
United States.
Test Bank: I
To pic: The Health Care Industry
12. The major purpose of Medicare is to
13. The major objective of Medicaid is to
24-6
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Di f f i c u l t y : 02 Medium
Learning Objective: 24–01 Convey important facts about rising health care costs in the
United States.
Test Bank: I
To pic: The Health Care Industry
14. As a percentage of GDP, health care spending in the United States has
15. Aggregate U.S. health care spending in 2014 was approximately
16. The United States devotes about percent of its gross domestic product to health care
(2014).
24-7
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
D.
17.5
AACSB: Knowledge Application
A c c e s s i b i l i t y : Keyboard Navigation
Blooms: Understand
Di f f i c u l t y : 02 Medium
Learning Objective: 24–01 Convey important facts about rising health care costs in the
United States.
Test Bank: I
To pic: The Health Care Industry
17. Between 1960 and 2014, U.S. health care spending as a percentage of domestic output
18. As a percentage of GDP, U.S. health care spending is
19. Total U.S. health care spending in 2014 was approximately
20. In the past several decades, U.S. health care expenditures have
21. Roughly what portion of U.S. total health spending is paid for by private and public
insurance?
24-9
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 24–01 Convey important facts about rising health care costs in the
United States.
Test Bank: I
To pic: The Health Care Industry
22. Rapidly rising U.S. health care costs have
23. Which of the following statements is correct?
24. The perceived central economic problem associated with the U.S. health care system is
24–10
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Knowledge Application
A c c e s s i b i l i t y : Keyboard Navigation
Blooms: Understand
Di f f i c u l t y : 02 Medium
Learning Objective: 24–02 Relate the economic implications of rising health care costs.
Test Bank: I
To pic: Economic Implications of Rising Costs
25. The fundamental problem associated with the U.S. health care system is that
26. When economists say that health care services are overconsumed, they mean that
27. Approximately what percentage of U.S. health care spending is financed by public
insurance?
28. Health care expenditures coming directly out of consumers‘ pockets, primarily in the
form of deductibles and copayments, account for what percentage of U.S. health care
spending?
29. For many years, the price of medical care in the United States has
24–12
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Di f f i c u l t y : 02 Medium
Learning Objective: 24–01 Convey important facts about rising health care costs in the
United States.
Test Bank: I
To pic: The Health Care Industry
30. The number of Americans without health insurance (as of 2015) is approximately
31. Given the availability of the Medicaid program, why are so many poor people
uninsured?
32. Which of the following persons is most likely to be insured for health care?
24–13
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
C. an unemployed retail clerk
D. a part-time groundskeeper for a small manufacturing plant
AACSB: Knowledge Application
A c c e s s i b i l i t y : Keyboard Navigation
Blooms: Understand
Di f f i c u l t y : 02 Medium
Learning Objective: 24–03 Discuss the problem of limited access to health care for those
without insurance.
Test Bank: I
To pic: Limited Access
33. The unemployed are disproportionately represented among the uninsured because
34. The health care market is characterized by
35. In the health care market,
36. The price elasticity of demand for health care is such that an increase in the price of
health care will
37. The price elasticity of demand for health care is
24–15
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 24–04 List the demand and supply factors explaining rising health
care costs.
Test Bank: I
To pic: Why the Rapid Rise in Costs?
38. The demand for health care in industrially advanced economies is
39. In industrially advanced countries, estimates suggest the income elasticity of demand
for health care is about
40. Based on the available elasticity evidence, health care
24–16
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Knowledge Application
A c c e s s i b i l i t y : Keyboard Navigation
Blooms: Remember
Difficulty: 01 Easy
Learning Objective: 24–04 List the demand and supply factors explaining rising health
care costs.
Test Bank: I
To pic: Why the Rapid Rise in Costs?
41. In industrially advanced countries, the price elasticity of demand for health care is
about
42. 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
43. Which of the following is a demand-increasing factor in the health care market?
44. Defensive medicine refers to the idea that
45. Defensive medicine
24–18
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Difficulty: 01 Easy
Learning Objective: 24–04 List the demand and supply factors explaining rising health
care costs.
Test Bank: I
To pic: Why the Rapid Rise in Costs?
46. The problem of asymmetric information is that
47. A major implication of asymmetric information is that
48. If labor productivity in the health care industry rises very slowly relative to wages and
salaries in the industry, this would tend to
24–19
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
D.
increase the cost of health care.
AACSB: Knowledge Application
A c c e s s i b i l i t y : Keyboard Navigation
Blooms: Remember
Difficulty: 01 Easy
Learning Objective: 24–04 List the demand and supply factors explaining rising health
care costs.
Test Bank: I
To pic: Why the Rapid Rise in Costs?
49. According to most experts, which of the following factors is most important in causing
health care costs to rise?
50. Economists argue that in treating patients,
51.
Refer to the diagram. Economists would argue that health care should be provided to
patients in