Econ 530 Fall 2020

Under the Patient Protection and Affordable Care Act of 2010, by 2014, uninsured persons will receive insurance from _______________. A. A state-run healthcare exchange B. A high-risk insurance pool C. TRICARE D. Medicaid

A. A state-run healthcare exchange

Which of the following is a key difference between Medicare and Medicaid? A. All of the above B. Financing methods C. Benefits offered D. Eligibility requirements E. Reimbursement Methods

A. All of the above

Which of the following reasons might explain why managed care organizations might be able to lower healthcare costs with premiums similar to fee-for-service plans? A. All of the above B. Both a and c C. The lower health care costs of managed care plans may be offset by higher administrative costs. D. Managed care organizations may set their premiums just below that of their competitors E. Managed care organizations may compete with one another based on service offerings rather than price.

A. All of the above

When a physician knows more about alternative treatments than her patients, we say that __________ exists. A. Asymmetric information B. Perfect information C. Moral hazard D. Rational ignorance

A. Asymmetric information

A ______________ represents a fixed amount paid by the consumer that is independent of the market price or actual costs of medical care. A. Copayment B. Deductible C. Claim D. Coinsurance rate E. Loading charge

A. Copayment

Which of the following is True? A. Current tax law provides a subsidy to employees for insurance purchased in the employment setting. B. Current tax law provides a subsidy to employers for providing health insurance to employees. C. Currently, tax law treats health insurance purchased in the employment setting the same as it treats health insurance purchased in the private market. D. Nearly all individuals not covered by employer or public insurance obtain health insurance in the private market.

A. Current tax law provides a subsidy to employees for insurance purchased in the employment setting.

Suppose robotic technology improves the results of abdominal surgery - less time to perform the surgery, faster recovery times, and fewer mistakes. What is the impact on the market for abdominal surgery using the new technology? A. Demand for robot-assisted surgery will increase B. Hospitals will be slow to adopt the new technology fearing that it may result in lower prices. C. The demand for surgical assistants will increase. D. All of the above

A. Demand for robot-assisted surgery will increase

A variable payment reimbursement system with low out-of-pocket expenses carries a _______ of large amounts of medical services. a. High likelihood b. Moderate likelihood c. Low likelihood d. Very low likelihood e. None of the above.

A. High likelihood

Which of the following could explain why the demand for Tylenol is inelastic? A. Households devote a very small portion of their income to Tylenol purchases. B. Tylenol is a rare commodity. C. Tylenol is a luxury good. D. Tylenol is a luxury for high income consumers but a necessity for low income consumers.

A. Households devote a very small portion of their income to Tylenol purchases.

The Affordable Care Act extends health insurance to millions of previously uninsured individuals. Having health insurance: A. Increases an individual's ability to pay for medical care and the demand for medical care. B. Guarantees that an individual will have access to medical care. C. Is the most effective way for an individual to maintain and improve his/her health. D. All of the above.

A. Increases an individual's ability to pay for medical care and the demand for medical care.

Reduced coinsurance rates are likely to _______ moral hazard costs and _______ the risk exposure of the consumer. a. increases; decreases b. decreases; decreases c. increases; increases d. decreases; increases e. None of the above

A. Increases; decreases

When the demand for medical care ___________, the real hourly wage for physicians should ___________. A. Increases; increase B. Decreases; stay the same C. Increases; stay the same D. Increases; decrease E. Decreases; increase

A. Increases; increase

When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price falls to $0.80, the quantity demanded increases to 600. Given this information and using the midpoint method, we know that the demand for candy bars is A. Inelastic B. Elastic C. Unit elastic D. Perfectly inelastic

A. Inelastic

Individuals who have access to large-group coverage are _____________________ likely to fall victim of cherry-picking behavior because the total cost of health insurance is distributed among a __________________ number of subscribers. A. Less; larger B. More; larger C. Less; smaller D. Equally; similar

A. Less; larger

_______________ is the situation where insured individuals alter their behavior because they are no longer financially responsible for the full cost of their behavior. A. Moral Hazard B. Asymmetric Information C. Rationality D. Scale Economics E. Adverse Selection

A. Moral Hazard

Market failure results from which of the following in the medical care market? A. Lack of fully informed consumers B. Social equity C. Externalities D. All of the above E. None of the above

D. All of the above

Complementary good

A related good that an increase in price will shift the demand for our good in question to the left. (Decrease - shift right)

Which of the following will not change the demand for office visits to the physician? A. They all change the demand for office visits. B. Television advertising by drug manufacturers to promote a new over-the-counter influenza treatment C. Unusually cold and damp weather during the winter D. Layoffs at the local plant causing a decrease in the number of people with health insurance in the community E. A change in the price of an office visit.

A change in the price of an office visit

Substitute good

A related good that an increase in price of that good will shift the demand for our good in question to the right (Decrease - shift left)

Some economists argue that if government did not regulate entry into the physician workforce patiences would assess physician quality and not demand the services of low quality doctors so they would be eliminated from the market. Why do other economists argue that this will not happen? A. Patients lack the information they need to identify high and low quality doctors B. Patients do not care about quality, they only care about the price C. There would be too few high quality doctors so many patients would have no choice but to see a low quality doctor. D. The American Medical Association would lobby government to allow low quality doctors to practice medicine so they could maximize their membership.

A. Patients lack the information they need to identify high and low quality doctors

Individuals covered by a high deductible health plan within a preferred provider organization use fewer outpatient services and shop around for lower cost outpatient services because they ___________________. A. Pay directly for routine care B. Are retirees on fixed budgets C. Get rebates for spending less on care D. Pay taxes on health care expenditures

A. Pay directly for routine care

Flue vaccinations are an example of __________________. A. Positive demand-side externality B. Negative supply-side externality C. No externality D. Negative demand-side externality E. Positive supply-side externality

A. Positive demand - side externality

_______________ are typically the primary source of funding for medical care insurance provided by a government agency. A. Taxes B. Premiums C. Copayment D. Out-of-pocket fees E. None of the above

A. Taxes

In September 2012, the average price of gasoline in the US was $3.91 per gallon and consumers brought 5 % 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

B. -0.76

Medicare is financed by: A. Revenues from federal excise taxes on cigarettes and alcohol. B. A payroll tax levied on both employees and employers C. A payroll tax levied only on employers D. A tax on Social Security benefits

B. A payroll tax levied on both employees and employers

Which of the following statements is true about the Medicaid program? A. Everyone in the poverty-level population is eligible for benefits B. Almost 3/4 of total outlays are for nursing home and health care for the elderly C. All of the above are true D. Eligibility standards are uniform across states. E. The program is totally funded by federal tax revenues

B. Almost 3/4 of total outlays are for nursing home and home health care for the elderly.

The Patient Protection and Affordable Care Act of 2010 will add a new funding source in 2018. That source is ______________. A. An excise tax on the healthcare plans with most benefits. B. A new excise tax on fast food restaurants C. New excise taxes on alcoholic beverages D. New excise taxes on tobacco products.

B. An excise tax on the healthcare plans with most benefits

Which of the following best describes allocative efficiency? A. Producing a medical service at the lowest possible costs. B. Constructing a new medical facility to exactly offset a market shortage of such services. C. Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her. D. None of the above. E. More that one of the above statements is true

B. Constructing a new medical facility to exactly offset a market shortage of such services.

Which of the following might cause a market to produce a quantity that is less than optimal? A. A price ceiling above the market equilibrium price B. Market control by a monopolist C. A subsidy to low-income consumers D. None of the above

B. Market control by a monopolist

What is the largest purchaser of nursing home services? A. Medicare B. Medicaid C. Private insurance D. Out-of-pocket E. Other

B. Medicaid

Suppose goods A and B are substitutes for each other. We would expect the cross-price elasticity between these two goods to be A. Either positive or negative. It depends whether the current price level is on the elastic or inelastic portion of the demand curve. B. Positive C. Either positive or negative. It depends on whether A and B are normal goods or inferior goods. D. Negative

B. Positive

Which one is true for the trend in financing health care expenditure around the world? A. All countries use market based solutions to pay for health care expenditures. B. Some poor countries spend less money than USA on health expenditures but have achieved better health outcomes. C. Countries do not trade health care services with each other. D. None of the above

B. Some poor countries spend less money than USA on health expenditures but have achieved better health outcomes.

Suppose that when the visiting cost to specialist doctors increases, Lonnie goes to see general practitioner doctors more often. To Lonnie, A. Specialist doctors and general practitioner doctors are complements B. Specialist doctors and general practitioner doctors are substitutes C. Specialist doctors and general practitioner doctors are inferior goods D. Specialist doctors and general practitioners doctors are normal goods

B. Specialist doctors and general practitioner doctors are substitutes

________________ are typically the primary source of funding for medical care insurance provided by a government agency. A. None of the above B. Taxes C. Out-of-pocket fees D. Premiums E. Copayments

B. Taxes

Which of the following is TRUE regarding uninsured individuals in the US, on average? A. They have higher-than-average incomes B. They have lower-than-average incomes C. Approximately two-thirds of them are in the family of current or former military personnel. D. They tend to have jobs that require a college degree

B. They have lower-than-average incomes

Suppose a government decides to subsidize flu vaccinations in an attempt to correct a market failure. Without this government intervention, the flu vaccination would most likely be due to the presence of _____________. A. Over-consumed; negative externalities B. Under-consumed; positive externalities C. Over-consumed; positive externalities D. Under-consumed; negative externalities E. None of the above

B. Under-consumed; positive externalities

Which is true about the healthcare expenditure across the globe? A. People living in rich countries are generally healthier. Therefore, they do not spend as much money as the poorer countries. B. Poorer countries spend more money on healthcare than richer countries. C. More populated countries spend less in health care in per capital than less populated countries. D. None of the above.

C. More populated countries spend less in health care in per capita than less populated countries.

If Sarah has an income of $50,000 when healthy, and faces a probability of 0.15 of losing $10,000 of this due to an illness, what is her expected income? a. $17,500 b. $40,000 c. $48,500 d. $44,000 e. $16,000

C. $48,500

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quantity demanded of good A falls to 400 units. Using the midpoint method, the price elasticity of demand for good A is: A. 1.50, and an increase in price will result in an increase in total revenue for good A. B. 1.50, and an increase in price will result in a decrease in total revenue for good A. C. 0.67, and an increase in price will result in an increase in total revenue for good A. D. 0.67, and an increase in price will result in a decrease in total revenue for good A.

C. 0.67, and an increase in price will result in an increase in total revenue for good A.

Joe Smith is a healthy 24 year old that expects to incur healthcare costs of less than $500 in a typical year. The annual premium that he must pay for health insurance is $2,000, which is the same premium that an unhealthy person must pay. Joe chooses not to buy health insurance. Their type of behavior results in which of the following? A. Supplier induced demand by health insurers B. Larger profits for health insurers C. Adverse selection in health insurance pools D. Demand uncertainty for medical care

C. Adverse selection in health insurance pools

Many young people are choosing not to buy health insurance on the state exchange market and instead pay a penalty. Many insurers are losing money on health plans sold on the state exchange market and are exiting. Health insurance premiums on the state exchange market have increased significantly. These are indications of: A. Supplier induced demand on the state exchange market. B. An efficient allocation of resources to the state exchange market. C. Adverse selection on the state exchange market. D. Moral hazard on the state exchange market.

C. Adverse selection on the state exchange market.

Suppose angioplasty and coronary artery bypass graft (CABG) surgery are substitute treatment alternatives for coronary artery disease. What should happen to the equilibrium price and quantity of angioplasty procedures if a new CABG technique is introduced that is less invasive (requiring a 4-inch incision under the breast bone rather than cracking open the patient's rib cage) and requires one-third the recovery period of regular CABG surgery? A. Both price and quantity will increase. B. The introduction of a new CABG procedure should have no effect on the price or quantity of angioplasty procedures. C. Both price and quantity will decrease. D. Price will decrease and quantity will increase. E. Price will increase and quantity will decrease.

C. Both price and quantity will decrease.

Rising healthcare insurance costs in a tight employment market (fewer jobs and many qualified applicants) will likely result in employers ___________. A. Covering a greater portion of employees healthcare insurance costs B. Firing workers with the greatest healthcare expenditures C. Eliminating healthcare insurance as a benefit D. Dropping part-time positions in favor of fewer full-time positions

C. Eliminating healthcare insurance as a benefit

Since the 1960s, medical care spending has been growing faster than the economy measured by the gross domestic product (GDP). Many economists believe this rapid growth in medical care spending is a problem because: A. Not enough of the growth isn spending is being used for new advanced medical technologies that save lives. B. The incomes of healthcare workers is rising relative to workers in other industries resulting in an inequitable distribution of income in the US C. Government must devote a larger share of its budge to financing medical care, which means it has less money to spend on education, roads, and other public goods we value. D. All of the above

C. Government must devote a larger share of its budget to financial medical care, which means it has less money to spend on education, roads, and other public goods we value.

One mechanism in the Affordable Care Act intended to extend health insurance to the uninsured is expansion of Medicaid. What is the economic incentive for states to end their Medicaid program to cover more low-income people? A. If a state does not expand its Medicaid program, the federal government eliminates the money it provides to the state to repair highways, roads, and bridges. B. If a state expands its Medicaid program, the federal government provides the state with more money for schools and universities. C. If a state expands its Medicaid program, the federal government will pay 90% or more of the cost of the additional people that are now eligible for Medicaid D. If a state does not expand its Medicaid program, the federal government requires it to pay 100% of the cost of Medicaid.

C. If a state expands its Medicaid program, the federal government will pay 90% or more of the cost of the additional people that are now eligible for Medicaid

Which of the following is a problem in the US Healthcare system that results in lower quality of care? A. Both B and C. B. Many patients cannot afford to pay for an adequate amount of medical care. C. Many patients don't get medical care that is medically necessary and could improve their health. D. Most residency programs are too short to adequately teach doctors the practice of medicine.

C. Many patients don't get medical care that is medically necessary and could improve their health.

Healthcare insurance premiums increased significantly shortly after passage of the Patient Protection and Affordable Care Act of 2010 (PPACA). A part of the increased premiums was due to A. A new fee on healthcare insurance companies B. Increased demand for private healthcare insurance C. No deductibles or co-payments for preventive care services D. A 20% increase in prescription drug prices

C. No deductibles or co-payments for preventive care services

For which pairs of goods is the cross-price elasticity most likely to be positive? A. Peanut butter and Jelly B. Bicycle frames and bicycle tires C. Pens and pencils D. College textbooks and iPods

C. Pens and pencils

The Affordable Care Act: A. Allows health plans to charge a higher premium to sick people than to healthy people. B. Requires health plans to charge a higher premium to younger people to subsidize the care of older people. C. Places a cap on annual out-of-pocket expenses that insured people are required to pay for the deductible, copayment, and coinsurance D. Requires health plans to have a copayment of not exceeding 5% on preventive medical care

C. Places a cap on annual out-of-pocket expenses that insured people are required to pay for the deductible, copayment, and coinsurance

Which of the following best describes productive efficiency? A. None of the above B. Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her. C. Producing a medical service at the lowest possible cost. D. Constructing a new medical facility to exactly offset a market shortage of such services. E. More than one of the above statements is true.

C. Producing a medical service at the lowest possible cost.

The Affordable Care Act created the Independent Payment Advisory Board (IPAB) to: A. Regulate insurance companies that sell health plans on state exchanges. B. Recommend new innovative methods of payment that Medicare can use to reimburse hospitals and doctors to give these providers an incentive to better coordinate the care for patients. C. Recommend policies to decrease the growth of Medicare spending if it exceeds a threshold stipulated by the act. D. Provide funding for research on the comparative effectiveness of medical care services.

C. Recommend policies to decrease the growth of Medicare spending if it exceeds a threshold stipulated by the act.

Which of the questions below is 'Health Economics' NOT concerned with? A. How to provide health care? B. What kind of health care should be provided? C. Should the poor get more health care than the rich? D. What is the value of health care?

C. Should the poor get more health care than the rich?

The government agency that controls the development and availability of new medical discoveries, including pharmaceutical drugs is A. The Centers for Disease Control B. The Federal Emergency Medical Administration C. The Food and Drug Administration D. The National Institutes for Health E. The Health Care Financing Administration

C. The Food and Drug Administration

In the market for medical care, patients often rely on physicians for information to make their medical decisions or all physicians to make these decisions for them. If the physician is an imperfect agent and is paid fee-for-service this may result in: A. The physician withholding necessary medical services for financial gain B. Patients not seeking medical care from the physician that charges the lowest price C. The physician recommending unnecessary medical services for financial gain D. Patients that are willing to pay the full price of medical care if they don't have health insurance

C. The physician recommending unnecessary medical services for financial gain.

According to WHO, which person is considered 'healthy'? A. Someone who is disease free B. Someone who is psychologically sound C. Someone who is social D. All of the above

D. All of the above

Health Economics A. Is the branch of economics that studies the healthcare system. B. Attempts to explain the healthcare system so we can better understand it C. Recommends ways to improve the health care system and increase its efficiency D. All of the above

D. All of the above

Medical care providers in the US are reimbursed through the use of ____________________. A. Out-of-pocket fees B. Variable payment systems C. Both A and B D. All of the above E. Fixed payment systems

D. All of the above

One objective of the Affordable Care Act is to increase the quality of care. Which of the following is a way it attempts to do this? A. Replace fee-for-service payment for providers with methods of payment that give providers economic incentives to deliver higher quality care. B. Develop and promote new types of medical care delivery systems that better coordinate care. C. Increase the amount of scientific evidence available to providers and patients about the effectiveness of medical care services. D. All of the above

D. All of the above

Which of the factors affect the health of a person? A. Access to health care B. Level of education C. Food intake D. All of the above

D. All of the above

Which one is true about health according to WHO? A. Health is a state of physical, mental, and social well-being and not merely the absence of disease or infirmity. B. Health deals with not only physical (and mental) status, but also with social and economic relationships. C. Broader interventions, including community empowerment and anti-poverty measures, are necessary to promote health. D. All of the above.

D. All of the above.

Health economics encompasses A. Supply and demand for health care B. Allocation of health care resources C. The determination of health care resources D. All of the answers are correct

D. All of the answers are correct

A patient has a medical condition, but he doesn't know what it is. The physician he sees diagnoses his illness correctly. What term applies to this situation? A. Principle-agent problem B. Rational ignorance C. Externalities D. Asymmetric information E. The substitution effect

D. Asymmetric information

A recent study reported that between 2005 and 2012 the number of active physicians in British Columbia, Canada increased by 12.8 % while the number of patient visits decreased by 14 %. Which of the following may explain why an increase in the number of physicians was associated with a decrease in the supply of physician services? A. The number of doctors in private practice increased relative to the number of doctors employed by hospitals B. The number of hours doctors choose to work decreased. C. The number of patient visits per hour worked by doctors decreased D. Both b and c.

D. Both b and c

Consumer-driven healthcare attempts to __________________ moral hazard costs by __________________ out-of-pocket expenditures faced by consumers. A. Increase; decreasing B. Decrease; decreasing C. Increase; increasing D. Decrease; increasing E. None of the above

D. Decrease; increasing

Insurance _____________ the price for medical care, thereby ________________ the demand for it. A. Increases; decreases B. Decreases; decreases C. Increases; increases D. Decreases; increases E. None of the above

D. Decreases; increases

____________________ Medicaid reimbursement rates will _______________ the opportunity cost of treating privately insured patients. A. Decreasing; increase B. Increasing ; not affect C. Increasing; decrease D. Decreasing; decrease E. Decreasing; not affect

D. Decreasing; decrease

Which of the following questions are NOT part of the health economics? A. Is financing health care through subsidy better than financing it through taxes? B. Does an increase in retirement age effect Medicare expenditure? C. Does the provision of universal health care improve the health outcomes for the entire economy? D. None of the above

D. None of the above

Moral hazard occurs in medical markets when A. Doctors violate standards of medical ethics B. A medical error injures a patient C. Medical care providers recommend unnecessary medical care services for financial gain D. Patients don't pay the full cost of the medical care they consume

D. Patients don't pay the full cost of the medical care they consume

Which of the following is NOT true regarding health care in the US? A. Health care spending is much higher in the US than in the typical industrialized nation B. In 2010, approximately 16% of the population was uninsured. C. The most important source of health insurance in the US is private insurance D. Prescription drug spending accounts for almost half of health spending.

D. Prescription drug spending accounts for almost half of health spending.

What type of healthcare insurance coverage is most common in America? A. Private insurance individually purchases B. No insurance C. Government insurance (all combined) D. Private insurance from employer

D. Private insurance from employer

An individual who is _____________ would be indifferent to purchasing health insurance. A. Risk-averse B. Self-employed C. Unemployed D. Risk-neutral E. Risk-Loving

D. Risk-neutral

Suppose chocolate-dipped strawberries are currently selling for $30 per dozen, but het equilibrium price of chocolate-dipped strawberries is $20 per dozen. We would expect a A. Shortage to exist and the market price of chocolate-dipped strawberries to increase. B. Shortage to exist and the market price of chocolate-dipped strawberries to decrease. C. Surplus to exist and the market price of chocolate-dipped strawberries to increase. D. Surplus to exist and the market price of chocolate-dipped strawberries to decrease.

D. Surplus to exist and the market price of chocolate-dipped strawberries to decrease.

Which of the following will not cause a shift in the medical care supply curve? A. A change in the cost of medical school tuition. B. A wave of union activity that increases the average salaries of nurses nationwide. C. A change in the number of high-profile medical malpractice lawsuits brought against physicians increasing the premiums on malpractice insurance. D. A change in the amount of student aid available to promising undergraduate students studying biology. E. A change in the percentage of the population with health insurance.

E. A change in the percentage of the population with health insurance

__________________________ occurs when high-risk individuals subscribe to an insured group of low-risk individuals. A. Moral Hazard B. Asymmetric Information C. Rationality D. Scale Economics E. Adverse Selection

E. Adverse Selection

Factors affecting medical care demand included A. Health status B. Demographic characteristics C. Economic standing D. Physician factors E. All of the above

E. All of the above.

An increase in income tax rates _______________ the opportunity cost of purchasing employer-sponsored health insurance. A. Increases B. Does not affect C. Transfers D. Eliminates E. Decreases

E. Decreases

A variable payment reimbursement system with low out-of-pocket expenses carries a ____________ of large amounts of medical services. A. None of the above B. Moderate likelihood C. Very low likelihood D. Low likelihood E. High likelihood

E. High likelihood

____________ is the situation where insured individuals alter their behavior because they are no longer financially responsible for the full cost of their behavior. A. Rationally B. Symmetric Information C. Adverse Selection D. Scale Economics E. Moral Hazard

E. Moral Hazard

Public goods are considered to be both ___________________ and __________________. A. Rival; excludable B. Rival; costly C. Non-rival; excludable D. Excludable; costly E. Non-rival; non-excludable

E. Non-rival; non-excludable

Suppose the demand curve for medical care services is perfectly in elastic. What will happen to the equilibrium price and quantity if supply increases? A. Price and quantity will rise B. Price will stay the same and quantity will rise C. Price and quantity will fall. D. Price will fall and quantity will increase. E. Price will fall and quantity will stay the same.

E. Price will fall and quantity will stay the same

The majority of financing for Medicaid programs comes from ________________. A. State governments B. None of the above C. Charitable care D. Individual premiums E. The federal government

E. The federal government

A decrease in the demand for medical care will cause the real hourly wage of physicians to increase. True or False

False

The purchase of insurance eliminates the risk of financial loss for all parties. True, False, Not sure

False

Quantity Demanded

How much of a good or service consumers are willing and able to purchase at one price level

Change in demand

Indicates whenever consumer behavior towards the good in question changes

Change in quantity demanded

Indicates whenever consumer changes the amount of the good in question that he wants to buy

In June, about 21,000 students graduated from accredited US medical schools. However, there were about 29,000 available slots in residency programs to be filled in July. Which of the following best explains why there are 8,000 more residency slots than graduates from accredited US medical schools?

Residency program slots not filled by US medical graduates are filled by foreign medical graduates and foreign doctors that desire to practice medicine in the US graduates and foreign doctors that desire to practice medicine in the US.

Demand

The behavior of the buyers in a market

Elasticity

The change in one economic variable as a result of change in another variable.

A negative income elasticity of demand for out-patient services would imply that it is an inferior good. True or False

True

A risk-averse individual will always prefer a certain amount of income over an expected amount of income of equal value True, False, Not Sure

True

Advancements in medical technology allow people to obtain greater amounts of health with the same amount of medical care. True or False

True

Elimination of the tax-exempt status of employer-sponsored health insurance would most likely lead to a decrease in the purchase of health insurance. True or False

True

Increased consumer copayment requirements may help to reduce health care expenditures True or False

True

Increasing access to medical care for low income individuals and households through the expansion of Medicaid eligibility requirements could decrease the quality of medical care received by current Medicaid beneficiaries. True, False, Unknown

True

Individuals with higher annual incomes possess a greater incentive to purchase more comprehensive health insurance coverage. True or False

True

Larger deductible requirements decrease the risk of moral hazard. True or False

True