Econ LSUS Exam 1 review Problem Set 1+2
Questions and Answers
Latest update
ANSWERS Questions
Which of the following is NOT a potential result of ever-increasing health care
Reduced incentives for innovation
pricing?
Reducing wasteful health care spending Suppose you are a politician being criticized in a debate for your commitment to
could provide additional funding to the reducing the growth of medical spending. Which of the following is the most
education sector appropriate answer?
, A health insurance arrangement where individuals have access to healthcare in
Third-party payment system
exchange for a set premium is called:
Total spending may rise if providers Suppose you are a consultant advising the U.S. government on reducing
intensify services and create new national healthcare spending. Assuming that providers will accommodate
technology for the uncontrolled sector patient desires, what advice would you offer concerning the implementation
of a price ceiling?
In spite of its early popularity, the Patient Protection and Affordable Care Act of
20 percent 2010 (ACA) had not improved by 2020. What percentage of Americans
considered its complete repeal a good thing?
The 1974 federal legislation that exempted employers from certain state laws
ERISA
governing health insurance was:
Since ACA was passed in 2010, there have been many efforts to have the bill
Eliminate the tax penalty for the individual
thrown out or at least watered down. Most attempts have been unsuccessful.
mandate
However, one key elements of ACA was successful, which was to:
That are incremental and thus relevant to Economists use the term marginal to describe costs and benefits:
decision making
Price transparency Which of the following does NOT contribute to wasteful spending in medical care?
Foregone opportunities Opportunity cost measures:
Which of the following is NOT considered to be a factor in the recent slowing of
Growing U.S. gross domestic product (GDP)
health care spending?
Deadweight loss Growing U.S. gross domestic product (GDP)
Self-insurance refers to the practice of setting aside funds to pay for medical
care expenses instead of paying premiums to an insurance company.
Two-thirds
Approximately, how many of all employees who participate in group insurance
plans work for firms that self-insure?
Market forces working through the price According to Adam Smith's terminology, the "invisible hand" refers to:
mechanism
Which of the following measurements of health care spending adjusts for the
Per capita
population size?
Assuming that providers will only accommodate patient desires up to a point, what
Quantity of healthcare supplied would fall
effect would a binding price ceiling have on the healthcare market?
Since 1950, U.S. health care spending has grown from an average of 4.5 percent
18
of GDP to an estimated forecast of percent of GDP in 2020.
Price will decrease to adhere to the price Assuming providers will accommodate patient desires, what effect would a binding
ceiling and quantity will increase price ceiling have on the healthcare market?
Even in the US, approximately, what percent of medical care is purchased through
90
insurance, government programs or other third party insurers?
Charging higher prices for one category of patients in order to provide free or
Cost shifting
subsidized care to another group is called:
Causes the demand curve to shift to the An inferior good:
left when income rises.
If a hospital dumps its biohazardous waste into the ocean and it pollutes the
a negative externality
neighboring state, this is an example of:
Which of the following might cause a market to produce less than the optimal
Market control by a monopolist
quantity?
Inoculation programs against certain diseases such as smallpox, polio, and
Positive externalities in consumption
whooping cough create:
Questions and Answers
Latest update
ANSWERS Questions
Which of the following is NOT a potential result of ever-increasing health care
Reduced incentives for innovation
pricing?
Reducing wasteful health care spending Suppose you are a politician being criticized in a debate for your commitment to
could provide additional funding to the reducing the growth of medical spending. Which of the following is the most
education sector appropriate answer?
, A health insurance arrangement where individuals have access to healthcare in
Third-party payment system
exchange for a set premium is called:
Total spending may rise if providers Suppose you are a consultant advising the U.S. government on reducing
intensify services and create new national healthcare spending. Assuming that providers will accommodate
technology for the uncontrolled sector patient desires, what advice would you offer concerning the implementation
of a price ceiling?
In spite of its early popularity, the Patient Protection and Affordable Care Act of
20 percent 2010 (ACA) had not improved by 2020. What percentage of Americans
considered its complete repeal a good thing?
The 1974 federal legislation that exempted employers from certain state laws
ERISA
governing health insurance was:
Since ACA was passed in 2010, there have been many efforts to have the bill
Eliminate the tax penalty for the individual
thrown out or at least watered down. Most attempts have been unsuccessful.
mandate
However, one key elements of ACA was successful, which was to:
That are incremental and thus relevant to Economists use the term marginal to describe costs and benefits:
decision making
Price transparency Which of the following does NOT contribute to wasteful spending in medical care?
Foregone opportunities Opportunity cost measures:
Which of the following is NOT considered to be a factor in the recent slowing of
Growing U.S. gross domestic product (GDP)
health care spending?
Deadweight loss Growing U.S. gross domestic product (GDP)
Self-insurance refers to the practice of setting aside funds to pay for medical
care expenses instead of paying premiums to an insurance company.
Two-thirds
Approximately, how many of all employees who participate in group insurance
plans work for firms that self-insure?
Market forces working through the price According to Adam Smith's terminology, the "invisible hand" refers to:
mechanism
Which of the following measurements of health care spending adjusts for the
Per capita
population size?
Assuming that providers will only accommodate patient desires up to a point, what
Quantity of healthcare supplied would fall
effect would a binding price ceiling have on the healthcare market?
Since 1950, U.S. health care spending has grown from an average of 4.5 percent
18
of GDP to an estimated forecast of percent of GDP in 2020.
Price will decrease to adhere to the price Assuming providers will accommodate patient desires, what effect would a binding
ceiling and quantity will increase price ceiling have on the healthcare market?
Even in the US, approximately, what percent of medical care is purchased through
90
insurance, government programs or other third party insurers?
Charging higher prices for one category of patients in order to provide free or
Cost shifting
subsidized care to another group is called:
Causes the demand curve to shift to the An inferior good:
left when income rises.
If a hospital dumps its biohazardous waste into the ocean and it pollutes the
a negative externality
neighboring state, this is an example of:
Which of the following might cause a market to produce less than the optimal
Market control by a monopolist
quantity?
Inoculation programs against certain diseases such as smallpox, polio, and
Positive externalities in consumption
whooping cough create:
