Question_Doc13_15Dec_7th

51)All of the following are governmental efforts to decrease poverty EXCEPT A) Supplemental Security Income

B) the earned income program. C) transfer payments.

D) tariffs.

52)The official poverty rate in the United States includes

A)less than 5 percent of the population.

B)between 10 and 15 percent of the population.

C)between 20 to 25 percent of the population.

D)over 35 percent of the population.

.

53)The poverty income threshold in the United States was originally calculated by A) multiplying a nutritionally adequate food plan for emergency use by 4.

B) multiplying a nutritionally adequate food plan for emergency use by 2. C) multiplying a nutritionally adequate food plan for emergency use by 3. D) multiplying a nutritionally adequate food plan for emergency use by 5.

54)Which of the following is NOT a program designed to attack poverty?

A)Supplementary Security Income

B)food stamps

C)Social Security

D)federal corporate income tax

55)Official poverty rates in the last 40 years have A) fallen dramatically.

B) risen dramatically.

C) stayed roughly the same. D) been eliminated.

56)The official definition of poverty is

A)exactly the 12 percent of U.S. residents with the lowest incomes.

B)exactly the 20 percent of U.S. residents with the lowest incomes.

C)an absolute measure.

D)a relative measure.

57)The federal government began officially measuring poverty in the A) 1860s.

B) 1900s. C) 1930s. D) 1960s.

58)The incidence of absolute poverty is reduced by

A)annual recalculations of the poverty line.

B)government welfare programs.

C)economic growth.

D)the size of the budget deficit.

59)All of the following aim to reduce income inequality EXCEPT A) Social Security payments.

B) earned income tax credits. C) regressive taxes.

D) food stamp programs.

60)Attempts to alleviate poverty have included all of the following income-maintenanceprograms EXCEPT

A) Social Security.

B) temporary assistance to needy families. C) 401(k) plans.

D) food stamps.

.

61)Some economists argue that the official poverty figures overstate poverty in this country. Why?

62)How can absolute poverty be eliminated? How can relative poverty be eliminated? Does the elimination of one lead to the elimination of the other? Explain.

63)Describe four of the five major income maintenance programs in the United States that were discussed in the text.

1) Which of the following is considered a "third party" within the medical services industry?

A)The patient

B)The private insurance company

C)The for-profit hospital

D)The medical provider, i.e. physician

2)According to the text, government spending accounts for about ________ percent of all U.S. health care expenditures.

A) 70 B) 10 C) 30 D) 40

3)An important contributor to rising U.S. health care costs in recent years is

A)less interest on the part of Americans to stay physically fit.

B)the increasing proportion of the population that smokes.

C)an easing of standards at medical schools that has permitted unqualified people to become physicians.

D)the aging of the population.

4)The percentage of national income spent on health care A) has steadily decreased since 1965.

B) has steadily increased since 1965.

C) increased until the end of the 1970s and then decreased in the 1980s and 1990s. D) decreased until the end of the 1970s and then increased in the 1980s and 1990s.

5)The impact of technological change in the health care area has been to

A)reduce the quality of health care while raising the costs.

B)reduce the cost of health care.

C)increase the quality of health care while decreasing the costs.

D)increase both the quality of health care and the costs of health care.

6)A problem with third-party financing of so much of health care is that A) it reduces the quality of health care received by most people.

B) it discourages physicians from getting second opinions and running enough tests to be sure the right procedure is followed.

C) it causes the demand for medical services to increase, which causes health care costs to increase.

D) it discourages people from relying on the judgments of physicians in making decisions about health care.

7)Among the reasons that health care expenditures have grown so rapidly in the United States over the last two decades are all of the following EXCEPT

A) an emphasis on wellness programs and preventive medicine. B) the aging of the U.S. population.

C) expensive new medical technologies. D) third-party financing.

8)An individual with no deductible on his or her health insurance policy will tend to engage in a lifestyle that is less healthy than a person with a $2,000 insurance deductible. This is said to be a problem of

A) healthy selection. B) moral hazard.

C) wellness training. D) blue-zoning.

9)The top 5 percent of health care users in the United States account for A) 30 percent of all health costs.

B) over 50 percent of all health costs. C) over 75 percent of all health costs. D) almost 90 percent of all health costs.

10)Which of the following is not a reason for rising health care expenditures in the United States over the last 40 years?

A) Aging of the population B) Technological change

C) Third-party financing of health care expenditures D) Discovery of new diseases

11)The impact of technological change in the health-care area has been to

A)increase both the quality of health care and the monetary costs of health care.

B)increase the monetary costs of health care and decrease the quality of health care.

C)decrease the monetary costs of health care while decreasing the quality of health care.

D)increase longevity but decrease quality of life.

12) Rising health care spending is a problem confronting the federal government because

A)it is the government's job to make sure everyone receives the health care they need.

B)federal spending on health care has increased rapidly over the last thirty years.

C)the federal-funded VA hospitals have been expanding faster than government revenues can provide for.

D)the medical expenses of federal employees has been rising at a rate much faster than for non- federal workers.

13)An example of third-party financing of health care is A) patients paying for their visit to the doctor.

B) patients not going to the doctor in order to save money.

C) a patient going to another doctor for a second or a third opinion. D) Medicare.

14)One problem with third-party financing of health care is that A) people have more incentive to utilize health care.

B) demand falls so that suppliers cannot take advantage of economies of scale. C) it reduces the quality of health care people receive.

D) it discourages people from relying on their physicians' advice in making health care decisions.

15)What impact do private insurance companies and Medicare have on national medical costs? A) Medical costs go up because insurance leads to an increase in the quantity demanded of medical services.

B) Medical costs go up because insurance will lead to the reduction in the supply of medical services due to the amount of paperwork required.

C) Medical cost are unaffected by insurance companies.

D) Medical costs go down because the insurance company pays the bill.

16)Other things being equal, a national health insurance program would

A)generate higher life expectancies and lower infant mortality rates.

B)generate lower life expectancies and higher infant mortality rates.

C)increase total health care expenditures.

D)increase the quality of life.

17)Other things being equal, a national health insurance program would A) decrease the demand for health care.

B) decrease moral hazard.

C) decrease total health care expenditures.

D) reduce individuals' incentives to make decisions that promote better health.

18)Rising healthcare costs are attributable to

A)people living longer and desiring more care.

B)reliance on expensive technology to support and prolong life.

C)third-party financing of healthcare costs.

D)all of the above

19)A benefit of deductibles and health savings accounts is that they A) reduce the moral hazard problem associated with third-party payers. B) increase the quality of health care.

C) reduce the use of expensive techniques for hopeless cases. D) reduce the incomes of physicians.

20)The percentage of total national income spent on health care in the United States has A) declined rapidly since 1965.

B) remained below the level of inflation. C) risen steadily since 1965.

D) remained constant over the last few years.

21)The above figure supports all of the following statements regarding health care EXCEPT A) the demand for health care is insensitive to price changes; as the price goes up, so does the quantity demanded.

B) if all medical expenses were paid for by third parties, the quantity demanded would increase tremendously.

C) due to third party payments, patients demand a higher quantity of health care services per year.

D) the lower the deductible, the greater is the quantity demanded of health care services per year.

22)Health care costs have been rising due to

A)an aging population.

B)new technologies.

C)third-party financing.

D)All of the above are correct.

23) Approximately how much of aggregate national income in the United States is spent on health care every year since 2000?

A)5 percent

B)10 percent

C)15 percent

D)30 percent Answer: C

24)The use of hospitals today is dominated by A) the elderly.

B) immigrants. C) obstetrical care. D) the wealthy.

25)The impact of technology on health care has A) provided for a higher quality of life.

B) increased health care costs.

C) contributed to increased life expectancy. D) All of the above are correct.

26)All of the following are reasons that health care costs have risen so much in the past few decades EXCEPT

A) the aging population. B) higher imports.

C) new technologies. D) third party payments.

27)The idea that some people engage in risky behavior due to the fact that they have good health care is known as

A) moral hazard. B) risk aversion. C)zero-sum game.

D) risk-taking behavior.