978-1259723223 Test Bank TBChap024 Part 4

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Test Bank: II

Topic: The Health Care Industry

142. Which of the following constituted the largest share of total health care spending in

2014?

143. Roughly how much of health care spending in the U.S. in 2014 was financed by

private and public insurance?

144. Which of the following financed the largest share of health care spending in the U.S. in

2014?

145. Approximately what portion of health care spending in the U.S. in 2014 was paid by

the patients (out–of–pocket)?

146. About what percentage of health care spending in the U.S. in 2014 was financed by

private health insurance?

147. Out-of-pocket costs of health care to consumers are mostly in the form of

148. The prominence of employer-provided health insurance in the U.S. has had the

following major consequences, except

149. Which of the following is a nationwide Federal health care program available to

Social Security beneficiaries and persons with disabilities?

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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: II

Topic: The Health Care Industry

150. What health care program provides payment for medical benefits to certain low-

income people, including the blind, the elderly, persons with disabilities, children, and

adults with dependent children?

151. Which person would most likely be eligible to receive Medicare?

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

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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 treatment

153. Monthly premiums for Medicare insurance that private individuals pay cover how

much of the cost of benefits provided by the program?

154. Which person would most likely be eligible to receive Medicaid?

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Test Bank: II

Topic: The Health Care Industry

155. The burden of Medicaid costs is

156. Health care spending accounted for what percentage of U.S. GDP in 1960 and in

2014?

157. Which of the following nations has the highest percentage of its GDP spent on health

care?

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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: II

Topic: The Health Care Industry

158. Rising health care costs have the following implications, except

159. One of the economic effects of rising health care costs in the labor market is that

160. Many economists believe that at the current level of consumption of health care in the

United States, the marginal cost of health care for society is

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C. equal to the marginal benefit.

D. zero.

161. The “too much of a good thing” situation in health care in the U.S. is a result of the

following causes, except

162. About what percentage of the U.S. population had no health insurance for the entire

year in 2015?

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

164. Most economists who have studied the health care industry have concluded that there

is

165. Those without any health insurance in the U.S. tend to be the following groups, except

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Learning Objective: 24–03 Discuss the problem of limited access to health care for those

without insurance.

Test Bank: II

Topic: Limited Access

166. The medically uninsured may wait until their illness reaches a critical stage before

going to the hospital for admittance or emergency care. Hospitals in the U.S. provide how

much of these uncompensated, or “free,” health care services per year?

167. The rising prices, quantities, and costs of health care in the U.S. are the result of

168. One of the peculiarities of the U.S. market for health care is

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D. fee-for-service payments for all physician visits.

169. One special feature about health care services is that society regards them as

170. Reasons for the rapid rise in demand for health care despite steeply rising prices

include the following, except

171. Which of the following terms best characterizes the demand for health care?

172. The price elasticity of demand for health care is 0.2. This means that a 5 percent

increase in price will induce a

173. Studies in industrially advanced nations indicate that a 3 percent increase in incomes

will generate a

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Difficulty: 01 Easy

Learning Objective: 24–04 List the demand and supply factors explaining rising health

care costs.

Test Bank: II

Top i c: Why the Rapid Rise in Costs?

174. Data on the income elasticity of demand for health care suggest that health care is a(n)

175. Which of the following is a demand factor in the market for health care?

176. One major factor contributing to rising health care costs is

177. Which of the following is not a reason why the demand for health care in the U.S. is

quite price-inelastic?

178. An increase in the demand for health care would most likely result from

179. Compared to younger people, those who are 65 and older tend to consume roughly

180. People 65 years old and older constituted about 9 percent of the U.S. population in

1960. In 2014, this percentage was around

181. A decrease in the demand for health care would most likely result from

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Difficulty: 01 Easy

Learning Objective: 24–04 List the demand and supply factors explaining rising health

care costs.

Test Bank: II

Top i c: Why the Rapid Rise in Costs?

182. Which factor will tend to increase the demand for health care?

183. All other things equal, increased concern for medical ethics will

184. The increased practice of “defensive medicine” is a consequence of

185. When the supplier, not the buyer, of health care services makes most of the decisions

about the amount and type of health care to be provided, there is

186. One of the special features of the health care market is asymmetric information. Which

of the following is

not

characteristic of asymmetric information?

187. Why is there an asymmetric information problem in the market for health care?

188. The moral hazard problem created when consumers acquire health insurance leads

them to

189. If the provision of medical insurance encourages people to take more health risks

because they know they can receive treatment, then health insurance

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190. All of the following factors lead to overconsumption of health care, except

191. The so-called government tax subsidy for health insurance comes in the form of

192. Assume that health insurance pays three-fourths of the cost of health care. Under this

type of system, there will be allocative

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193. The idea that one pays a relatively small known cost for protection against an

uncertain and much larger cost is the basic principle behind

194.

Quantity Demanded (units of

service)

Price

Quantity Supplied (units of

service)

200

$700

800

300

600

700

400

500

600

500

400

500