MICROECONOMICS FINAL EXAM PART 3
in 2012, health care expenditures in the united states were approximately ______ per person
$9,000
the age group in the united states which has undergone the largest reduction in the poverty rate because of government programs was:
65 years old and older
in most wealthy countries excluding in the united states, the government pays ______ of medical costs
70% to 80%
which of the following counties has a single-payer system funded through taxes in which the government is the principal payer of medical bills for all of its citizens
Canada
the means-tested US government health insurance program is:
Medicaid
which of the following programs provides in-kind transfers?
Medicaid
children in low-income families that cant afford insurance but are above the poverty threshold are covered by:
SCHIP (state children's insurance health program)
given that the definition of poverty has not been adjusted to reflect the long-term rise in average incomes, you would expect ________ in the percentage of the population living below the poverty line
a decrease
which of the following was NOT mentioned in the textbook as a possible factor in increasing income inequality in the united states since 1968?
a reduction in the number of people attending college
much of the rise in income inequality in the past 20 years in the united states comes from:
a rising gap among the incomes of highly educated workers
the poverty threshold is the same regardless of the number of members in a household
false
America's gini coefficient is _______ than that of most _______
higher; other wealthy nations
a definition of poverty that compares the individual's level of income with that of other individuals in the country:
is a relative measure
the rising income gap among highly educated workers in the united states
is an important feature of the increase in income inequality
when a welfare program is provided to those whose income falls below some minimum, it is said to be:
means-tested
a ______ program is one for which the recipient qualifies on the basis of _____
means-tested; income
the ______ identifies the level of income at which half of the households in the population earn more and half of the population earns less
median household income
a social insurance program is aimed at:
people who have encountered unexpected financial distress
the welfare state can:
take up a large share of government spending in wealthy countries
______ is (are) a means-tested monetary benefit in a welfare program
temporary assistance for needy families
which program was introduced in 1990 to replace the means-tested program Aid to Families with Dependent Children?
temporary assistance to needy families
the mean household income is:
the average income across all households
_______ is a means-tested program
the food stamp program
the poverty threshold is defined as:
the minimum annual income that is considered adequate to purchase the necessities of life
the poverty threshold depends upon:
the size and the composition of the family
health care in the united states is DIFFERENT FROM that of other wealthy countries in all of the following ways EXCEPT that:
the united states is the only country that provides government health care
among the following, which factor has been associated with the increase in income inequality in the united states?
the way technological change has affected labor demand
the ability-to-pay principle is a good justification for:
the welfare state, the income tax structure, and government transfers
technological change in the united states over the past 3 decades has increased the demand for skilled labor and decreased the demand for unskilled labor
true
if you were to provide an economic policy without knowing your own economic status, you would be operating:
under a veil of ignorance
approximately _____ of Americans have no health insurance
11% to 20%
in 2014 the poverty threshold for a household with one person was about:
11,670
in 2012, health care expenditures in the united states accounted for _______ of GDP
15% to 20%
which of the following transactions is a transfer payment?
a senior citizen receives a social security payment
which of the following LACK(S) are associated with poverty?
adequate employment, education, and proficiency in English
sometimes healthy people drop their health insurance, leaving only sicker people to buy insurance. this creates a situation known as:
adverse selection
suppose ABC health is a private health insurance company that offers an identical policy to all customers. each customer pays a premium equal to the average consumer's annual medical expenses. this is a system that has the potential to fail because of the _____ problem
adverse selection
programs associated with the welfare state are believed to cause deadweight loss, since they:
affect incentives to work and save
medicare is health insurance coverage provided to:
all americans age 65 and over and is not means-tested
among the reasons for a welfare state is a desire to alleviate income inequality and to:
alleviate economic insecurity
food stamps are an example of:
an in-kind benefit
if a nation's gini coefficient is rising over time, it is an indicator of:
an increase in income inequality
in 2012 ______ of the US population was living in poverty
approximately 15%
in the united states, the government pays _____ of medical costs
approximately 50%
means-tested programs:
are poverty programs that specifically help those with low incomes
in the united states since world war II, the distribution of income has:
changed first toward equality and then, after 1968, toward greater inequality
the poverty line is adjusted each year to reflect:
changes in the cost of living
the adverse selection death spiral occurs when private insurance companies:
charge higher-than-average prices for health insurance, which in turn drives off healthy individuals and leaves only sicker, high-cost individuals, resulting in yet higher premiums the following period
for the united states in 2012, a gini coefficient of 0.47 suggests that:
compared to most European countries, the united states has unusually high levels of income inequality
a high-income household is taxed a certain amount of money. a low-income household receives financial assistance in the same amount from government. the value of the marginal dollar of the financial assistance to the family and the taxes paid by the high-income family are:
different, since the marginal dollar is worth more to the low-income family
in the united states, income inequality fell:
during the 1930s and 1940s
the individual mandate is the requirement that:
each individual must purchase health insurance
a sudden loss of income and a significant increase in costly medical expenses are examples of:
economic insecurity
becky works for a large grocery store that provides a health insurance program to all workers. this is an example of:
employment-based health insurance
a negative income tax is levied on forms even if they have negative income
false
poverty tends to be more prevalent for those over age 65 than for those under 18
false
economists believe that looking at the distribution of income by quintiles at one moment overstates the true inequality of income because:
families near the bottom of the distribution in any given year may be having an unusually bad year, while those at the top may be having an unusually good one
critics of temporary assistance for needy families argue that it creates perverse incentives such as:
family breakup, since a family with both spouses present may not qualify for aid
Medicaid is funded by:
federal and state governments
in 2012, which of the following demographic groups had the HIGHEST poverty rate?
female-headed families with no husband present
since 1967 the percentage of the population living below the poverty line has:
fluctuated, but not in any consistent direction
which of the following US welfare programs is a means-tested in-kind benefit?
food stamps
which of the following countries gives all of its citizens a choice between private doctors and hospitals and care in a system run directly by the government?
france
political conservatives and liberals:
generally agree on their support of programs associated with the welfare state but disagree on the appropriate extent of these programs
the ______ is widely used to measure income inequality
gini coefficient
which of the following countries has a health care system that directly employs health care workers and runs hospitals and clinics that are free to the public
great Britain
the period during the 1930s and 1940s when income inequality fell sharply is called the
great compression
if the median household income in 2010 was $49,445:
half of the households in the united states earned less than $49,445m and half earned more
the notch problem occurs when a poor family that has been receiving aid:
has an increase in earnings that reduces means-tested aid from programs, hence reduces their combined incomes
in the united states and other wealthy countries, a large part of the welfare state is devoted to payments for:
health care
an advantage of employment-based insurance is that it:
helps reduce the problem of adverse selection
children raised in poverty are more likely to live in poverty as adults than are other children, because low income is highly correlated with higher:
high school dropout rates, risk of mental problems and behavioral disorders, and rates of illness and hospitalization
during the past 25 years the degree of income inequality in the united states has been rising. which of the following is NOT a possible reason for this phenomenon?
higher divorce rates
when adverse selection occurs, healthy people pay premiums that are ______ their actual health care costs
higher than
health care expenditures in the united states are ______ than in other countries such as Canada and france, and the government share of health care in the united states is ______ than in those countries
higher; lower
redistribution programs are means-tested. to qualify for such a program, a person must demonstrate that:
his or her income (or means) is below a certain specified level
the provision of specific goods and services (rather than cash) to needy people by way of welfare programs is:
in-kind benefits
food stamps, Medicaid, and housing subsidies are all:
in-kind transfers
in the united states in the first 2 decades following world war II:
income distribution became more nearly equal
a factor that has been associated with the increase in income inequality in the united states is the:
increase in immigration
progress in medical science has contributed to _____ health care costs
increasing
community rating is a regulation that requires:
insurance companies to offer the same policies for the same premium to everyone, regardless of medical history
in the united states, if someone does not have health insurance, it is likely that this person:
is a low-income worker whose employer does not provide coverage and who cannot afford private coverage
the negative income tax:
is a program in which low-income working families receive income supplements rather than having to pay taxes
employment-based insurance:
is provided by companies to their employees
compared to a generation ago, benefits from public aid programs, adjusted for inflation, are:
less
in the united states, individuals pay directly (out of pocket) _______ of medical costs
less than 15%
studies of family income over time reveal that:
many people who start out at the bottom of the income ladder when they are young move up the income ladder as they age and move down again when they retire
the problem with community rating is that it:
may cause adverse selection
________ programs are designed to provide benefits to people whose income falls below some minimum
means-tested
the US government health insurance program for people aged 65 years and older is:
medicare
which of the following US welfare programs is an in-kind benefit that is NOT means-tested?
medicare
private health insurance is funded by:
members of a large pool of individuals, each paying a fixed premium to a private company that agrees to pay some portion of the medical expenses of the members
there is considerable ______ among the quintiles of the distribution of income, with many families moving from ______ quintiles and others moving from _______ quintiles
mobility; higher to lower; lower to higher
unemployment insurance is a(n) ________ that is ___________
monetary transfer; not means-tested
there are 6 households in a rural community. each household earns $40,000 per year. suppose that a new resident builds a mansion in the community and that the income in the new household is $4 million per year. after the new resident arrives, the median household income has _______ and the mean household income tax _______
not changed; increased
the percentage of the population that falls below the poverty line is called the
poverty rate
programs that are not means-tested:
provide benefits for people regardless of income level
to ensure that low and middle income families have health insurance, the Affordable care act of 2010 _______ low-and middle-income families ________
provides government subsidies to; to make insurance more affordable
temporary assistance for needy families is a means-tested program that:
provides limited assistance to poor households with children
some of the major causes of poverty are lack of education, bad luck, lack of proficiency in English, and:
racial and gender discrimination
a popular explanation for the most important cause of the increase in income inequality in recent years is:
rapid technological change
an advantage of employment-based insurance is that:
receives favorable tax treatment
poverty programs are aimed at:
reducing the percentage of the families living below the poverty line
in the united states, the mobility between income groups is:
relatively high
over the past 2 decades, the share of income going to the richest Americans has ______ than the share going to the poorest Americans
risen faster
insurance companies attempt to minimize adverse selection by:
screening and employment-based health insurance
some nations, including Canada, have adopted a health care system in which the government pays the medical bills. this is known as a(n) _________ system
single-payer
the largest ______ program in the united states is ________
social insurance; social security payments to retired persons
measured by the amount of money spent by the US government, which of the following US welfare programs is the largest?
social security
which of the following US welfare programs is a monetary benefit that is NOT means-tested?
social security
which of the following is the BEST example of social insurance?
social security
which of the following programs is NOT an antipoverty program?
social security
an example of a social insurance program is:
social security payments to the disabled
in 2012, the largest share of health care costs was paid for by:
the government
a factor that has been associated with the increase in income inequality in the united states is:
the growth in technology
increases in income inequality in the united states are partially attributed to:
the impact of technological innovation on the demand for labor
which of the following is NOT a leading cause of poverty in the united states?
the welfare system
most americans receive their health insurance through
their employer
people may be uninsured for all of the following reasons EXCEPT that:
they are too old to qualify for health insurance
government payments to individuals for which no good or service exchanged are:
transfer payments
payments from the government to assist individuals are called
transfers
in the united states, inequality has increased over the past 25 years, in part because of rapid technological change
true
means-tested programs are available only to those with sufficiently low income. an example of a means-tested program is temporary assistance for needy families
true
people with more education have a lower poverty rate
true
poverty can be defined either in absolute terms or in relative terms
true
which of the following countries does NOT provide health care to all of its citizens?
united states
compared to other countries of comparable wealth, the united states has:
usually high poverty rates
the gini coefficient
varies between 0 and 1
john rawls believed that:
we should do unto others as we would like them to do unto us if we were in the same place
which of the following is NOT a major cause of poverty in the united states?
welfare
