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24-61
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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?
24-64
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: 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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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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?
24-67
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: 24-01 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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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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
24-70
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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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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: 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
24-76
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: 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
