Ch 18 Microecon
An example of a means-tested program is: a) the food stamp program. b) purchasing a new city police car. c) Social Security payments to the disabled. d) expenditure on national defense.
a
In the United States, individuals pay directly (out of pocket) _______ of all medical costs in 2009. a) less than 15% b) 50% c) 100% d) between 70% and 80%
a
Medicaid is funded by: a) federal and state governments. b) state governments only. c) the federal government only. d) private charities.
a
The Gini coefficient: a) varies between 0 and 1. b) is seldom used, since it does not help one understand income inequality. c) is also equal to the mean household income for a country. d) is often the same for most industrially developed countries.
a
The U.S. government health insurance program for people 65 years old and older is: a) Medicare. b) health savings accounts. c) the Veterans Administration. d) Medicaid.
a
Which of the following is associated with poverty? a) lack of adequate employment, lack of education, and lack of proficiency in English b) lack of adequate employment c) lack of proficiency in English d) lack of education
a
Which of the following is not a leading cause of poverty in the United States? a) the welfare system b) lack of adequate employment c) discrimination d) lack of education
a
The ________ is widely used to measure income inequality. a) poverty rate b) Gini coefficient c) median household income d) ability-to-pay principle
b
The adverse selection death spiral occurs when private insurance companies: a) refuse to insure very sick individuals. b) 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. c) find themselves with only healthy individuals to insure. d) offer health insurance at average cost, which results in losses to the company.
b
The negative income tax: a) is the minimum tax that must be paid by a business even if it has a negative income (or a loss). b) is a program in which low-income working families receive income supplements rather than having to pay positive taxes. c) is the term used by economists to describe a badly designed tax system. d) refers to a tax system in which low incomes are taxed at a higher rate than high incomes.
b
Which of the following countries has a health care system which directly employs health care workers and runs hospitals and clinics that are free to the public? a) France b) Great Britain c) United States d) Canada
b
A social insurance program would be one aimed at: a) households with children. b) reducing the percentage of families earning incomes below the poverty line. c) people who have encountered unexpected financial distress. d) keeping people from earning less than $10,000.
c
Employment-based insurance: a) does not receive benefits from the U.S. government. b) is provided only to those who are not working. c) consistently runs into the problem of adverse selection death spiral. d) is provided by companies to their employees.
c
Progress in medical science has contributed to __________ health care costs. a) constant b) randomly fluctuating c) increasing d) decreasing
c
Redistribution programs are means tested. To qualify for such a program, a person must demonstrate that: a) he or she is making serious efforts to get a job, even though he or she is currently unemployed. b) his or her family is larger than the mean family size for the country as a whole. c) his or her income (or means) is below a certain specified level. d) his or her average (or mean) family income has fallen (or not gone up) during the past three years.
c
The percentage of the population that falls below the poverty line is called the: a) poor rate. b) absolute number of people in poverty. c) poverty rate. d) homeless rate.
c
America's poverty rate is ________ than that of most ________. a) no lower; developing nations b) higher; developing nations c) just a little lower; other wealthy nations d) higher; other wealthy nations
d
Children raised in poverty have a greater likelihood of living in poverty as adults than do those raised in nonpoor families, because low income is highly correlated with higher: a) high school dropout rates. b) rates of illness and hospitalization. c) risk of mental problems and behavioral disorders. d) high school dropout rates, risk of mental problems and behavioral disorders, and with higher rates of illness and hospitalization.
d
Food stamps, Medicaid, and housing subsidies are all examples of: a) the Temporary Assistance for Needy Families program. b) a negative income tax. c) unemployment benefits. d) in-kind benefits.
d
Medicare is health insurance coverage provided to: a) individuals who fall below the poverty threshold and is means tested. b) individuals who fall below the poverty threshold and is not means tested. c) all Americans age 65 and older and is means tested. d) all Americans age 65 and older and is not means tested.
d