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Economic
Q:
Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase a health insurance policy?
A) the company that issues the health insurance policy
B) the individual who is applying for the health insurance policy
C) the employer of the individual who is trying to purchase the health insurance policy
D) All parties in the health insurance market have access to the same level of information.
Q:
The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is
A) inefficient market hypothesis.
B) moral hazard.
C) information disparity.
D) asymmetric information.
Q:
An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy. What is the term used to describe the situation above?
A) moral hazard
B) adverse selection
C) asymmetric information
D) economic irrationality
Q:
A key difficulty facing insurance companies is that people know more about their health than do insurance companies, and that those people who are seriously ill are the most likely to want to obtain health insurance. What is this phenomenon called?
A) moral hazard
B) economic irrationality
C) asymmetric information
D) adverse selection
Q:
What is the main difference between a single-payer health care system and socialized medicine?
Q:
Briefly explain 4 of the difficulties in making cross-country comparisons in health care outcomes.
Q:
What are the main sources of health insurance in the United States?
Q:
The Japanese system of universal health insurance requires no co-payments from residents for health services.
Q:
Canada has a single-payer health care system in which the government provides national health insurance to all Canadian residents.
Q:
On average, people in the United States spend a greater percentage of their income on health care than do people in most other countries.
Q:
In the United States in 2011, over 90 percent of people without health insurance were below the age of 34.
Q:
A majority of people in the United States have private health insurance.
Q:
Of the following high-income countries, which has the lowest number of MRI units per 1 million population?
A) Canada
B) Japan
C) the United Kingdom
D) the United States
Q:
Of the following high-income countries, which has the highest number of CT scanners per 1 million population?
A) Canada
B) Japan
C) the United Kingdom
D) the United States
Q:
Of the following high-income countries, which has the lowest mortality ratio for cancer?
A) Canada
B) Japan
C) the United Kingdom
D) the United States
Q:
Of the following high-income countries, which has the highest infant mortality rate?
A) Canada
B) Japan
C) the United Kingdom
D) the United States
Q:
Of the following high-income countries, which has the lowest life expectancy at birth?
A) Canada
B) Japan
C) the United Kingdom
D) the United States
Q:
In the United States, health care spending per person based on income per person is ________ the average for most other countries.
A) slightly lower than
B) significantly higher than
C) significantly lower than
D) comparable to
Q:
Typically, the higher the level of income per person in a country, the higher the level of spending per person on health care. This relationship between income and spending indicates that health care is a
A) normal good.
B) inferior good.
C) luxury.
D) necessity.
Q:
The largest government-run health care system in the world, with 1.7 million employees, is in
A) Canada.
B) Japan.
C) the United Kingdom.
D) the United States.
Q:
In which of the following countries are substantial co-payments typically required as a part of the health care system?
A) Canada and the United States
B) Japan and Canada.
C) the United States and Japan
D) the United States and the United Kingdom
Q:
Health insurance typically pays for most preventive care procedures in all of the following countries except
A) Canada.
B) Japan.
C) the United Kingdom.
D) the United States.
Q:
Most doctors and hospitals operate as private businesses in all of the following countries except
A) Canada.
B) Japan.
C) the United Kingdom.
D) the United States.
Q:
The health care system in the United Kingdom is referred to as ________, under which the government owns most of the hospitals and employs most of the doctors.
A) an out-of-pocket system
B) a single-payer health care system
C) a universal health insurance system
D) socialized medicine
Q:
The health care system in Japan is referred to as ________, under which every resident of Japan is required to enroll in either a private or the government-provided health insurance program.
A) an out-of-pocket system
B) a single-payer health care system
C) a universal health insurance system
D) socialized medicine
Q:
The health care system in Canada is referred to as ________, and is a system in which the government provides national health insurance to all Canadian residents.
A) an out-of-pocket system
B) a single-payer health care system
C) a universal health insurance system
D) socialized medicine
Q:
Health insurance plans which typically reimburse doctors mainly by paying a flat fee per patient are known as
A) fee-for-service plans.
B) preferred provider organizations.
C) single-health-payer systems.
D) health maintenance organizations.
Q:
In the United States in 2012, of those companies employing more than 200 workers that offer health care to those workers, about ________ percent of employees accept the coverage.
A) 10
B) 36
C) 62
D) 98
Q:
In the United States in 2012, about two-thirds of those who were not covered by health insurance
A) are single and unemployed.
B) live in families in which at least one member has a job.
C) live in families in which all members are unemployed.
D) are retired from the workforce.
Q:
In the United States, private health insurance companies
A) are all for-profit firms.
B) are all not-for-profit firms.
C) can be either for-profit or not-for-profit firms.
D) are all government-run firms.
Q:
A contract under which a buyer agrees to make payments in exchange for the provider agreeing to pay some or all of the buyer's medical bills is referred to as
A) a fee-for-service plan.
B) the Affordable Care Act.
C) a deductible.
D) health insurance.
Q:
In the United States in 2012, the percentage of people that directly purchased an individual or family health insurance policy from an insurance company was about
A) 2%.
B) 10%.
C) 17%.
D) 26%.
Q:
In the United States in 2012, the percentage of firms that employed between 3 and 199 workers and offered health insurance as a fringe benefit to the workers was about
A) 29%.
B) 42%.
C) 61%.
D) 98%.
Q:
In the United States in 2012, the percentage of firms that employed more than 200 workers and offered health insurance as a fringe benefit to the workers was about
A) 29%.
B) 42%.
C) 61%.
D) 98%.
Q:
In the United States in 2012, the percentage of people who received health insurance through a government program was about
A) 10%.
B) 16%.
C) 36%.
D) 64%.
Q:
In the United States in 2012, the percentage of people without any form of health insurance was about
A) 16%.
B) 29%.
C) 64%.
D) 83%.
Q:
In the United States in 2012, the percentage of people with private health insurance was about
A) 17%.
B) 29%.
C) 74%.
D) 83%.
Q:
Briefly describe the most important differences between the market for health care and the market for other goods and services.
Q:
How can improvements in health increase a country's total income?
Q:
How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?
Q:
Between 1981 and 2011, deaths from cancer have increased in the United States.
Q:
Life expectancy at birth in the United States has more than doubled since 1850.
Q:
The overall mortality rate in the United States has remained fairly constant for the past 30 years.
Q:
Changes in the health of the average person are an important indicator of changes in the standard of living.
Q:
Better health allows people to work harder, which raises a country's total income. This indicates that in effect, better health
A) is a primary cause of price increases.
B) reduces the incentive to work.
C) shifts out a country's production possibilities frontier.
D) increases consumer surplus.
Q:
The overall decline in death rates in the United States since 1981 was due to all of the following except
A) a decline in smoking.
B) the decline in the population.
C) the availability of new prescription drugs.
D) new surgical techniques.
Q:
In the United States from 1981 to 2011, deaths from diabetes increased largely due to the effects of
A) foreign-produced insulin.
B) stress in the workplace.
C) a larger immigrant population.
D) increasing obesity.
Q:
In the United States from 1981 to 2011, deaths from all of the following declined substantially except
A) cancer.
B) kidney disease.
C) heart attacks.
D) strokes.
Q:
A typical consumer of health care in the United States
A) pays the full price of his or her health care.
B) pays more than the full price of his or her health care.
C) does not pay any of the price of his or her health care.
D) does not pay the full price of his or her health care.
Q:
Between 1981 and 2011, the overall mortality rate in the United States
A) decreased by more than 25 percent.
B) slowly but steadily increased.
C) remained fairly constant.
D) was similar to the average rate in most low-income countries.
Q:
In the United States, doctors and hospitals that provide most health care are
A) primarily private firms.
B) primarily employed by the government.
C) split evenly between private firms and employed by the government.
D) 100 percent employed by the government.
Q:
On average, people in high-income countries ________ than people in low-income countries.
A) have a shorter life expectancy
B) are subject to a higher infant mortality rate
C) are taller
D) are exposed to more severe diseases
Q:
In 2013, health care made up ________ of the U.S. economy
A) about 2 percent
B) roughly 8 percent
C) more than one-sixth
D) almost two-thirds
Q:
Over the past 160 years in the United States, life expectancy
A) has remained fairly constant.
B) has slightly declined.
C) has more than doubled.
D) increased up to the 1950s and then declined for the next 60 years.
Q:
If the quantity supplied of walkie-talkies increases by 5 percent when prices increase by 12 percent, then
A) the supply of walkie-talkies is inelastic.
B) the supply of walkie-talkies is elastic.
C) the walkie-talkie supply curve will shift to the right.
D) the walkie-talkie supply curve will shift to the left.
Q:
In September 2012, the average price of gasoline in the United States was $3.91 per gallon and consumers bought 5 percent less gasoline than they had during September 2011, when the average price was $3.66 per gallon. Based on these numbers, what was the price elasticity of demand for gasoline from September 2011 to September 2012?
A) -0.33
B) -0.76
C) -2.96
D) -6.75
Q:
Suppose the supply of bicycles is price elastic. This means that
A) consumers will respond significantly to an increase in the quantity supplied of bicycles.
B) suppliers will increase the quantity supplied of bicycles, but not immediately.
C) suppliers face many substitutes for bicycles.
D) suppliers will respond significantly to changes in the price of bicycles.
Q:
Figure 6-1 Refer to Figure 6-1. A perfectly inelastic demand curve is shown in
A) Panel A.
B) Panel B.
C) Panel C.
D) Panel D.
Q:
To calculate the price elasticity of supply we divide
A) the percentage change in price by the percentage change in quantity supplied.
B) the percentage change in quantity supplied by the percentage change in price.
C) rise by the run.
D) the average price by the average quantity supplied.
Q:
Figure 6-1 Refer to Figure 6-1. A perfectly elastic demand curve is shown in
A) Panel A.
B) Panel B.
C) Panel C.
D) Panel D.
Q:
The price elasticity of supply measures
A) the responsiveness of quantity supplied to changes in input prices.
B) the responsiveness of quantity supplied to changes in technology.
C) the responsiveness of quantity supplied to changes in price.
D) a supplier's ability to produce a good in the face of scarcity.
Q:
Figure 6-1 Refer to Figure 6-1. The demand curve on which elasticity changes at every point is given in
A) Panel A.
B) Panel B.
C) Panel C.
D) none of the above graphs.
Q:
Suppose the demand curve for a product is represented by a typical downward-sloping curve. Now suppose the demand for this product decreases. Which of the following statements
accurately predicts the resulting decrease in price?
A) The more elastic the supply curve, the greater the price increase.
B) The more elastic the supply curve, the smaller the price decrease.
C) The increase in price is not affected by the elasticity of the supply curve.
D) The decrease in price will always be proportional to the magnitude of the demand shift.
Q:
Seth is a competitive body builder. He says he has to have his 12-oz package of protein powder to "feed his muscles" every day. On the basis of this information, what can you conclude about his price elasticity of demand for protein powder?
A) It is elastic.
B) It is perfectly elastic.
C) It is perfectly inelastic.
D) The price elasticity coefficient is 0.
Q:
Suppose at the going wage rate of $20 per hour, firms can hire as many hours of janitorial services as it desires. If any firm tries to lower the wage rate to $19, it will not be able to hire any janitor. What does this indicate about the supply curve for janitorial services?
A) Supply is unit-elastic.
B) Supply is perfectly elastic.
C) Supply is perfectly inelastic.
D) Supply is relatively inelastic.
Q:
Jenna runs a small boutique in Capitola. She tells one of her suppliers that she is willing to pay $6 for a pair of wool hand warmers and not a dime more. On the basis of this information, what can you conclude about her price elasticity of demand for wool hand warmers?
A) It is elastic.
B) It is perfectly elastic.
C) It is perfectly inelastic.
D) The price elasticity coefficient is 0.
Q:
Over longer periods of time, increases in oil prices provide firms with incentives to explore and recover oil. What does this indicate about the long run price elasticity of supply for oil?
A) The elasticity coefficient is likely to be higher in the long run than in the short run.
B) The elasticity coefficient is likely to be lower in the long run than in the short run.
C) The elasticity coefficient approaches 0 in the long run as supplies are depleted.
D) The elasticity coefficient is unstable in the long run because oil supplies may be depleted.
Q:
If demand is perfectly inelastic, the absolute value of the price elasticity of demand is
A) zero.
B) less than one.
C) more than one.
D) equal to the absolute value of the slope of the demand curve.
Q:
Bringing oil to the market is a relatively long and costly process. The whole process from exploration to pumping significant amounts of oil can take years. What does this indicate about the price elasticity of supply for oil?
A) The elasticity coefficient is likely to be very high and supply is inelastic.
B) The elasticity coefficient is likely to be close to zero and supply is perfectly elastic.
C) The elasticity coefficient is likely to be low and supply is highly inelastic.
D) The elasticity coefficient is likely to be low and supply is highly elastic.
Q:
A demand curve which is ________ represents perfectly inelastic demand, and a demand curve which is ________ represents inelastic demand.
A) downward sloping; vertical
B) horizontal; downward sloping
C) vertical; downward sloping
D) upward sloping; horizontal
Q:
If, for a given percentage decrease in price, quantity supplied decreases by a proportionately smaller percentage, then supply is
A) unit-elastic.
B) perfectly elastic.
C) relatively inelastic.
D) elastic.
Q:
If demand is inelastic, the absolute value of the price elasticity of demand is
A) one.
B) less than one.
C) greater than one.
D) greater than the absolute value of the slope of the demand curve.
Q:
If firms do not increase their quantity supplied when price changes, then supply is
A) perfectly elastic.
B) perfectly inelastic.
C) relatively inelastic.
D) elastic.
Q:
The price elasticity of demand for Stork ice cream is -4. Suppose you're told that following a price increase, quantity demanded fell by 10 percent. What was the percentage change in price that brought about this change in quantity demanded?
A) 40 percent
B) 25 percent
C) 2.5 percent
D) 0.4 percent
Q:
If, for a given percentage increase in price, quantity supplied increases by a proportionately larger percentage, then supply is
A) unit-elastic.
B) perfectly elastic.
C) relatively inelastic.
D) elastic.
Q:
If the percentage increase in price is 15 percent and the value of the price elasticity of demand is -3, then quantity demanded
A) will increase by 45 percent.
B) will increase by 5 percent.
C) will decrease by 45 percent.
D) will decrease by 5 percent.
Q:
The price elasticity of supply for umbrellas is 2. Suppose you're told that following a price increase, quantity supplied increased by 30 percent. What was the percentage change in price that brought this about?
A) 60 percent
B) 15 percent
C) 6.7 percent
D) impossible to determine without additional information
Q:
Suppose the value of the price elasticity of demand is -3. What does this mean?
A) A 1 percent increase in the price of the good causes quantity demanded to increase by 3 percent.
B) A 1 percent increase in the price of the good causes quantity demanded to decrease by 3 percent.
C) A 3 percent increase in the price of the good causes quantity demanded to decrease by 1 percent.
D) A $1 increase in price causes quantity demanded to fall by 3 units.
Q:
Figure 6-11 Refer to Figure 6-11. What is the value of the price elasticity of supply between g and h?
A) 20 percent
B) 0.5
C) 2
D) 0.02
Q:
Price elasticity of demand measures
A) how responsive suppliers are to price changes.
B) how responsive sales are to changes in the price of a related good.
C) how responsive quantity demanded is to a change in price.
D) how responsive sales are to a change in buyers' incomes.