Economics (McConnell) AP Edition, 19th Edition

Chapter 21: Health Care

Quiz

1
Most private health insurance in the U.S.:
A)is purchased by households directly from insurance companies
B)covers only catastrophic care
C)has no copays or deductibles
D)is provided by employers to their employees
2
The effect of medical insurance is to:
A)increase the demand for covered procedures
B)reduce the total number of the procedures provided
C)decrease the supply of covered procedures
D)move downward and to the left along the supply curve for a covered procedure
3
As a percentage of GDP, medical spending is approximately:
A)17% and rising
B)8% and rising
C)12% and falling
D)18% and falling
4
Beginning in 2006, Medicare Part D:
A)capped malpractice awards for "pain and suffering"
B)abolished the right of employers to require their workers to establish health savings accounts
C)expanded hospitalization insurance coverage to workers aged 59 to 65
D)provided prescription drug coverage to Medicare-eligible citizens
5
In many industrially advanced countries, the quantity of health care demanded increases at about the same pace as income, suggesting that the:
A)income elasticity of demand is about 1
B)income elasticity of demand is about 0
C)price elasticity of demand is about -2
D)demand for health care is an inferior good
6
In addition to unequal access to care, the major problem facing the U.S. health care industry is:
A)declining quality of care relative to other advanced economies
B)the reduction in the number of physicians per capita
C)the rapidly rising cost of health care
D)the development of a patients' bill of rights
7
Which accounts for the largest percentage of health care financing in the U.S.?
A)Public insurance
B)Private insurance
C)Co-payments and deductibles
D)Private expenditures other than co-payments and deductibles
8
Most economists who have studied the health care industry have concluded that resources in the U.S. are likely:
A)underallocated to health care; marginal benefits exceed marginal costs
B)underallocated to health care; marginal costs exceed marginal benefits
C)overallocated to health care; marginal benefits exceed marginal costs
D)overallocated to health care; marginal costs exceed marginal benefits
9
The demand for health care in the U.S. is:
A)price elastic and income inelastic
B)price inelastic and income elastic
C)both price and income inelastic
D)both price and income elastic
10
The Patient Protection and Affordable Care Act:
A)mandated that all large employers provide health coverage to their employers or face a fine
B)allows individuals to purchase any amount of health insurance they choose, including the choice not to have any coverage at all
C)provided health insurance coverage to all U.S. citizens
D)caps the cost of individual health insurance at 1% of family income for all families
McConnell Economics Nineteenth Edition Large Cover Image
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