APA Final Exam - Quiz questions with
verified answers passed
Health vs. Health care - correct answer ✔✔Wellbeing - physical and mental not just being
disease free; the other is the system that helps ensure this
Scarcity - correct answer ✔✔Dividing resources by using prices; supply and demand; infinite
number of needs and limited resources; in HP goods are more regulated than market driven
The leading insurance companies in the US in the 1920s were against compulsory health
insurance because of the inclusion of a funeral benefit - correct answer ✔✔True
The American Federation of Labor, lead by Samuel Gompers, championed Compulsory health
insurance coverage for all workers - correct answer ✔✔False
The American Medical Association responded to the Great Depression by restricting the supply
of doctors rather than stimulating demand for physicians' services. - correct answer ✔✔True
Increased state and federal funding for medical services of the poor started with the passage of
Medicaid in 1965. - correct answer ✔✔False
Post WW II, veterans were able to win support not only for treatment of their service-related
injuries but for all of their medical care needs, largely because of AMA support. - correct answer
✔✔False
Blue cross started off as an insurance program that covered hospital costs only - correct answer
✔✔true
, The AMA is legally allowed to collectively bargain with managed care organizations on behalf of
its members over doctor fees. - correct answer ✔✔False
High deductible plans promote adverse selection. - correct answer ✔✔true
Medicare's prospective payment system has increased hospitalization rates. - correct answer
✔✔False
In America, physicians have always enjoyed an esteemed position in society. - correct answer
✔✔False
The goal of insurance is to give an individual financial risk protection - correct answer ✔✔True
market equilibrium occurs when supply is greater than the demand - correct answer ✔✔false
all individuals consider societal welfare when maximizing their own utility - correct answer
✔✔false
Moral hazard occurs when individuals do not consider opportunity costs - correct answer
✔✔false
cost sharing in health insurance is a form of supply side tool to control moral hazard - correct
answer ✔✔false
Asymmetry of information can lead to market inefficiencies - correct answer ✔✔True
In the principal-agent relationship, the principal can easily monitor the agent's behavior -
correct answer ✔✔False
verified answers passed
Health vs. Health care - correct answer ✔✔Wellbeing - physical and mental not just being
disease free; the other is the system that helps ensure this
Scarcity - correct answer ✔✔Dividing resources by using prices; supply and demand; infinite
number of needs and limited resources; in HP goods are more regulated than market driven
The leading insurance companies in the US in the 1920s were against compulsory health
insurance because of the inclusion of a funeral benefit - correct answer ✔✔True
The American Federation of Labor, lead by Samuel Gompers, championed Compulsory health
insurance coverage for all workers - correct answer ✔✔False
The American Medical Association responded to the Great Depression by restricting the supply
of doctors rather than stimulating demand for physicians' services. - correct answer ✔✔True
Increased state and federal funding for medical services of the poor started with the passage of
Medicaid in 1965. - correct answer ✔✔False
Post WW II, veterans were able to win support not only for treatment of their service-related
injuries but for all of their medical care needs, largely because of AMA support. - correct answer
✔✔False
Blue cross started off as an insurance program that covered hospital costs only - correct answer
✔✔true
, The AMA is legally allowed to collectively bargain with managed care organizations on behalf of
its members over doctor fees. - correct answer ✔✔False
High deductible plans promote adverse selection. - correct answer ✔✔true
Medicare's prospective payment system has increased hospitalization rates. - correct answer
✔✔False
In America, physicians have always enjoyed an esteemed position in society. - correct answer
✔✔False
The goal of insurance is to give an individual financial risk protection - correct answer ✔✔True
market equilibrium occurs when supply is greater than the demand - correct answer ✔✔false
all individuals consider societal welfare when maximizing their own utility - correct answer
✔✔false
Moral hazard occurs when individuals do not consider opportunity costs - correct answer
✔✔false
cost sharing in health insurance is a form of supply side tool to control moral hazard - correct
answer ✔✔false
Asymmetry of information can lead to market inefficiencies - correct answer ✔✔True
In the principal-agent relationship, the principal can easily monitor the agent's behavior -
correct answer ✔✔False
