health care special chapter

Which of the following is likely to be the impact of the Patient Protection and Affordable Care Act in the U.S.? A decrease in the supply of physician services in the short term A decrease in the demand for medical services A decline in the waiting times for medical procedures A sharp decrease in the prices of medical services

A decrease in the supply of physician services in the short term

Which of the following is likely to occur when employees are provided with additional income rather than health insurance benefits? Additional income will make the direct purchase of health insurance less costly than purchase through an employer. It will decrease resource mobility and the efficiency in the use of resources in an economy. It will decrease the number of people in an economy without any health insurance coverage. Additional income will be subject to both payroll and personal income taxes.

Additional income will be subject to both payroll and personal income taxes

Which of the following is likely to control the future costs of health care in the U.S.? Allowing consumers to purchase health care insurance plans from out-of-state providers Encouraging the purchase of health insurance plans with small copayments A new government program placing more emphasis on demand side subsidies in the health care market An increase in tax benefits when healthcare is purchased through one's employer

Allowing consumers to purchase health care insurance plans from out-of-state providers

Which of the following is likely to occur as a result of the Patient Protection and Affordable Care Act in the U.S.? A decrease in real expenditures on health care programs An increase in the number of part-time workers in the economy An increase in the level of unemployment in the economy An increase in efficiency in the use of resources

An increase in the number of part-time workers in the economy

Identify the correct statement about health insurance offered by the U.S. companies. It is costlier than the direct purchase of health insurance by an individual or family. It increases the competitiveness of the health insurance industry. About one-third of nonelderly adults have health insurance through group plans offered by their employers. Employee compensation in the form of health insurance is not subject to taxation.

Employee compensation in the form of health insurance is not subject to taxation

Identify the correct statement about the health care industries in different countries across the world. The high-income countries of Europe are able to provide as much health care, free of charge, as their citizens want. There is a widespread presence of both privately-operated and government-operated enterprises in the health care industries in most European countries. Health care in Canada is a socialized industry. Socialization of the health care industry in Canada eliminates the problem of scarcity in the health care industry.

Health care in Canada is a socialized industry.

Identify the correct statement about real expenditures on the Medicare program in the U.S. It halved between 1990 and 2014. It increased between 1970 and 1980, but decreased between 1980 and 2014. It doubled between 1980 and 1985, but halved over the next five years. It increased rapidly between 1970 and 2014.

It increased rapidly between 1970 and 2014.

Which of the following is true of the Medicaid program in the U.S.? It is financed from the general revenues of the federal and state governments. It is financed entirely by the federal government. It covers the health care costs of the U.S. citizens aged 65 and older. It is paid for by the private insurance companies in the U.S.

It is financed from the general revenues of the federal and state governments.

Which of the following is a likely outcome of the Patient Protection and Affordable Care Act in the U.S.? A decrease in the demand for health care services An increase in the number of doctors or medical suppliers in the short term A reduction in the effective marginal tax rates of those earning between 134 percent and 400 percent of the poverty income threshold Many employers with a high proportion of middle-income and low-income employees dropping their health insurance coverage

Many employers with a high proportion of middle-income and low-income employees dropping their health insurance coverage

Identify the correct statement about the Medicare and Medicaid programs in the U.S. Both provide low-income families with accessible health care facilities. Real expenditures on the Medicare and Medicaid programs decreased between 1990 and 2014. Both are financed by the federal government from payroll taxes. Real expenditures on the Medicaid program were four-fifths that of the Medicare program in 2014.

Real expenditures on the Medicaid program were four-fifths that of the Medicare program in 2014.

Which of the following is a reason for the poor performance of the U.S. health care industry? The substitution of out-of-pocket spending for third-party payments, leading to health care inflation State regulations that force insurers operating in a state to cover numerous items, leading to higher health care prices An increase in the privately-operated enterprises in the U.S. health care industry Regulations encouraging the residents of a state to purchase the health insurance plans offered in other states

State regulations that force insurers operating in a state to cover numerous items, leading to higher health care prices

Which of the following would help control the future growth of health care prices and expenditures? The direct payment of medical bills from health savings accounts The purchase of health insurance plans with first-dollar coverage and small copayments Encouraging programs that increase demand subsidies in the health care market Restricting the residents of each state from purchasing health care from out-of-state providers

The direct payment of medical bills from health savings accounts

Given the current structure of the U.S. health care industry, which of the following is likely to occur with the aging of the baby-boom generation in the U.S.? The spending on Medicare and other health care programs will increase. The demand for health care services will decrease. The prices of health care services will decrease. The tax rates on the incomes of Americans will decrease.

The spending on Medicare and other health care programs will increase.

Which of the following is the reason behind the poor performance of the U.S. health care industry? The tax structure in the economy that makes it difficult for citizens to purchase health insurance through one's employer An increase in the share of health care costs that are paid for directly by consumers The structure of government programs relying on third-party payments that erode consumers' incentive to economize A decrease in the share of Medicare and Medicaid programs as a percentage of the federal budget

The structure of government programs relying on third-party payments that erode consumers' incentive to economize

Which of the following is likely to be an advantage of health savings accounts (HSAS) in the U.S.? They will encourage health care consumers to shop for value. They will increase the supply of medical personnel in the health care market. They will encourage health care consumers to purchase low-deductible, low copayment health insurance plans. They will force employers to bear a larger share of the medical expenses of their employees

They will encourage health care consumers to shop for value.

Identify the correct statement about health care expenditures in the U.S. Third-party payments accounted for 87 percent of the medical care purchases in 2014. 20 percent of the medical bills were paid for directly by consumers in 1960. 70 percent of medical expenditures were paid for by third parties in 1960. Third-party payments accounted for 10 percent of the medical care purchases in 2014.

Third-party payments accounted for 87 percent of the medical care purchases in 2014.

The payroll tax imposed on the income of the U.S. citizens is used to finance the: Medicaid program that provides low-income families with access to health care. cost of hospitalization incurred by the beneficiaries of Medicare. cost of the outpatient medical services of the beneficiaries of Medicare. purchase of prescription drugs by the beneficiaries of Medicare.

cost of hospitalization incurred by the beneficiaries of Medicare

Economic theory indicates that the growth of subsidies to health care consumers and the accompanying expansion in third-party payments will result in: a decrease in the demand for health care services. higher prices and increased returns for health care providers. lower prices and decreased returns for health care providers. an increase in the supply of health care services.

higher prices and increased returns for health care providers.

The implementation of the Patient Protection and Affordable Care Act will: decrease the competitiveness of the health insurance business by allowing people to purchase the insurance across state boundaries. reduce the demand for health care and thereby lead to lower prices for health care services. substantially reduce the share of health care expenses paid for by a third party. require all Americans to purchase health care insurance from either a private or a government source.

require all Americans to purchase health care insurance from either a private or a government source.

The growth of third-party payments of health care expenditures in the U.S. is likely to: encourage the health care providers to keep the prices low. increase the efficiency of the health care providers in the economy. decrease the prices of medical services relative to the general index of consumer prices in the economy. weaken the incentives of consumers to economize and shop for low-cost medical services.

weaken the incentives of consumers to economize and shop for low-cost medical services.