Employer-provided private health insurance A) is unique to the United States and not typically found in other countries. B) is the most common form of health care provision in industrialized countries.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Employer-provided private health insurance
A) is unique to the United States and not typically found in other countries.
B) is the most common form of health care provision in industrialized countries.
C) substantially reduces the cost of health care provision relative to national health
insurance schemes.
D) provides a small percentage of health care spending in the United States.
1)
2) Employer-provided private health insurance began in the United States because
A) the rising threat of socialism prompted U.S. companies to provide insurance to
dampen enthusiasm for socialist reform.
B) during World War II, wage and price controls forced employers to use nonwage
forms of compensation to attract workers.
C) poor health conditions at the beginning of the 20th century prompted the U.S.
government to require new companies to offer health insurance to employees.
D) the American Medical Association successfully lobbied the U.S. government to
provide subsidies to companies offering private health insurance to employees.
2)
3) Employer-provided private health insurance in the United States has resulted in
A) incentives that encourage the overuse of health care.
B) incentives that discourage the use of health care, and overall poorer health.
C) lower costs of health care as providers better achieve economies of scale.
D) comprehensive coverage of the U.S. population, with few lacking access to
adequate health care.
3)
4) Which of the following statements is true about health care costs in the United States?
A) Costs have risen because increases in the price of health care have more than offset
reductions in the quantity of health care provided.
B) Costs have risen because increases in the quantity of care provided have more than
offset price reductions realized through economies of scale.
C) Costs have risen because both the price of health care and the quantity provided
have risen.
D) Costs have remained relatively stable as price increases have been largely offset by
reductions in the quantity provided.
4)
5) The perceived central economic pr
6) The fundamental problem associated with the U.S. health care system is that
A) the financing of health care through insurance has resulted in the underallocation of
resources to the health care industry.
B) frivolous malpractice suits have increased malpractice insurance premiums for
doctors.
C) at the margin, the value of health care services may be less than the value of
alternative goods and services.
D) there are too many general practitioners and not enough specialists.
6)
7) When economists say that health care services are overconsumed, they mean that
A) rich people buy too much health care and poor people buy too little.
B) some resources now used in the health care industry could produce alternative
goods and services that society values more highly.
C) health care is being purchased in amounts such that marginal benefits exceed
marginal costs.
D) the price of health care is below equilibrium so that quantity demanded exceeds
quantity supplied.
7)
8) Given the availability of the Medicaid program, why are so many poor people uninsured?
A) Because only a fixed percentage of the population can participate in Medicaid at any
time.
B) Because many poor people earn enough that they do not qualify for Medicaid.
C) Because nonincome requirements screen many poor people from the program.
D) Because only native-born Americans are eligible for the program.
8)
9) The main purpose of HMOs and PPOs is to
A) reduce health care costs for employers and their employees.
B) reduce medical malpractice suits.
C) enable groups of physicians to increase their fees.
D) direct patients to specialists rather than to more expensive primary-care physicians.
9)
10) The employer mandate of the PPACA requires that
A) every firm must purchase health insurance for their full-time employees or pay a
$2,000 fine per employee.
B) every firm with 50 or more full-time employees must purchase health insurance for
their full-time employees or pay a $2,000 fine per employee.
C) every firm with fewer than 50 full-time employees must purchase health insurance
for their full-time employees or pay a $2,000 fine per employee.
D) every firm with 500 or more employees must establish their own on-site medical
facilities to provide employees with basic medical care.
10)
2
11) One of the provisions of the PPACA is a personal mandate that all individuals
A) pay a $1,000 deductible and 20 percent co-pay on all medical care except annual
check-ups or preventative care.
B) contribute at least 30 percent of the total cost of employer-provided health
insurance.
C) purchase health insurance for themselves and their dependents unless they are
already covered by government or employer-provided insurance.
D) with preexisting conditions must purchase a specially designated government
insurance plan.
11)
12) Which of the following was not an objection raised by opponents of the Patient
Protection and Affordable Care Act?
A) The revenue generated by the new taxes in the PPACA would be insufficient to
cover costs of the program.
B) The PPACA moves the United States closer to creating a national health insurance
system with nonprice rationing of health care.
C) The subsidies would lead to higher prices and increased consumption of health care.
D) The percentage of health care spending coming directly out of consumers’ pockets
would increase.
12)
13) The prominence of employer-provided health insurance in the U.S. has had the following
major consequences, except
A) overuse of health care services.
B) rapidly rising prices of health care.
C) reform efforts have mostly focused on regulation of health insurance.
D) heightened awareness of employees about the true costs of their health care.
13)
14) The burden of Medicaid costs is
A) the sole responsibility of states.
B) the sole responsibility of the Federal government.
C) shared by the states and Federal government.
D) shared by the states and the individual receiving the benefits.
14)
15) One of the economic effects of rising health care costs in the labor market is that
A) productivity in medical care decreases.
B) the demand for medical workers is decreasing.
C) government is cutting health care coverage for workers.
D) employers are using more temporary and part-time workers.
15)
16) Most economists who have studied the health care industry have concluded that there is
A) an underallocation of resources for health care in the United States.
B) an overallocation of resources for health care in the United States.
C) insufficient technological progress in the medical industry.
D) a need for government price controls for physicians’ fees.
16)
3
17) Raising the deductibles and copayments is a way of dealing with the
A) adverse selection problem of health insurance
B) moral hazard problem of health insurance.
C) asymmetric information between doctors and patients.
D) externalities of health care.
17)
18) Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum
acceptable price to the seller, Tony, was $140. Amanda experiences
A) a consumer surplus of $10, and Tony experiences a producer surplus of $190.
B) a producer surplus of $200, and Tony experiences a consumer surplus of $10.
C) a consumer surplus of $670, and Tony experiences a producer surplus of $200.
D) a producer surplus of $10, and Tony experiences a consumer surplus of $190.
18)
19)
Refer to the diagram. The area that identifies the maximum sum of consumer surplus and
producer surplus is
A) a + b + c + d + e + f. B) c + d + f.
C) a + b + e. D) a + b + c + d.
19)
4
20)
Refer to the diagram. If actual production and consumption occur at Q2,
A) efficiency is achieved.
B) an efficiency loss (or deadweight loss) of a + b + c + d occurs.
C) an efficiency loss (or deadweight loss) of a + c occurs.
D) an efficiency loss (or deadweight loss) of e + f occurs.
20)
21) Allocative efficiency occurs only at that output where
A) marginal benefit exceeds marginal cost by the greatest amount.
B) consumer surplus exceeds producer surplus by the greatest amount.
C) the combined amounts of consumer surplus and producer surplus are maximized.
D) the areas of consumer and producer surplus are equal.
21)
22) At the output where the combined amounts of consumer and producer surplus are
largest,
A) the areas of consumer and producer surplus necessarily are equal.
B) the maximum willingness to pay for the last unit of output equals the minimum
acceptable price of that unit of output.
C) consumer surplus exceeds producer surplus by the greatest amount.
D) marginal benefit exceeds marginal cost by the greatest amount.
22)
23) An efficiency loss (or deadweight loss)
A) is measured as the combined loss of consumer surplus and producer surplus from
over- or underproducing.
B) results from producing a unit of output for which the maximum willingness to pay
exceeds the minimum acceptable price.
C) can result from underproduction, but not from overproduction.
D) can result from overproduction, but not from underproduction.

The post Employer-provided private health insurance A) is unique to the United States and not typically found in other countries. B) is the most common form of health care provision in industrialized countries. appeared first on Ink Essays.