Chapter 9 The Health Care
Multiple Choice
1. When the average buyer of an insurance policy is likely to have higher risk than others in his class, this
is known as
A) adverse selection.
B) moral hazard.
C) asymmetric information.
D) an HMO.
Ans: a
2. In 2007, the percentage of health care expenditures paid out-of-pocket was
A) 6.9.
B) 8.3.
C) 12.
D) 1.5.
Ans: c
3. Paying money in order to guarantee a certain level of compensation should an adverse event occur is
A) risk aversion.
B) risk smoothing.
C) risk pooling.
D) risk rating.
Ans: b
4. The current percentage of Americans over the age of 65 is
A) 18.2%.
B) 19.0%.
C) 12.6%.
D) 10.5%.
Ans: c
5. Health care markets may be inefficient because of
A) poor information.
B) adverse selection.
C) moral hazard.
D) all of the above.
Ans: d
6. A third-party payment is
A) made by three people.
, B) a payment that requires three signatures.
C) is made by someone other than the consumer.
D) is not used in the US health system.
Ans: c
7. The government can address by providing universal health insurance coverage and
charging uniform premiums.
A) expected utility
B) asymmetric information
C) commodity egalitarianism
D) adverse selection
Ans: d
8. Marginal benefit and marginal cost must to avoid a deadweight loss.
A) equal
B) never equal
C) decrease at an increasing rate
D) increase at an increasing rate
Ans: a
9. Most private insurance is provided by
A) employers as a benefit to their employees.
B) the federal government.
C) HMOs.
D) the Office of Health Insurance.
Ans: a
10. When people behave in ways that involve increased risk because they have insurance, this is known
as
A) adverse selection.
B) moral hazard.
C) asymmetric information.
D) a HMO.
Ans: b
11. What percentage of African Americans are uninsured?
A) 80
B) 3
C) 37
D) 21
Ans: d
12. Expected values
A) are calculated as the average value.
B) are calculated over all possible outcomes.
Multiple Choice
1. When the average buyer of an insurance policy is likely to have higher risk than others in his class, this
is known as
A) adverse selection.
B) moral hazard.
C) asymmetric information.
D) an HMO.
Ans: a
2. In 2007, the percentage of health care expenditures paid out-of-pocket was
A) 6.9.
B) 8.3.
C) 12.
D) 1.5.
Ans: c
3. Paying money in order to guarantee a certain level of compensation should an adverse event occur is
A) risk aversion.
B) risk smoothing.
C) risk pooling.
D) risk rating.
Ans: b
4. The current percentage of Americans over the age of 65 is
A) 18.2%.
B) 19.0%.
C) 12.6%.
D) 10.5%.
Ans: c
5. Health care markets may be inefficient because of
A) poor information.
B) adverse selection.
C) moral hazard.
D) all of the above.
Ans: d
6. A third-party payment is
A) made by three people.
, B) a payment that requires three signatures.
C) is made by someone other than the consumer.
D) is not used in the US health system.
Ans: c
7. The government can address by providing universal health insurance coverage and
charging uniform premiums.
A) expected utility
B) asymmetric information
C) commodity egalitarianism
D) adverse selection
Ans: d
8. Marginal benefit and marginal cost must to avoid a deadweight loss.
A) equal
B) never equal
C) decrease at an increasing rate
D) increase at an increasing rate
Ans: a
9. Most private insurance is provided by
A) employers as a benefit to their employees.
B) the federal government.
C) HMOs.
D) the Office of Health Insurance.
Ans: a
10. When people behave in ways that involve increased risk because they have insurance, this is known
as
A) adverse selection.
B) moral hazard.
C) asymmetric information.
D) a HMO.
Ans: b
11. What percentage of African Americans are uninsured?
A) 80
B) 3
C) 37
D) 21
Ans: d
12. Expected values
A) are calculated as the average value.
B) are calculated over all possible outcomes.
