Problem 1
Which of the following best describes the United States" level of health care spending as compared to that of other nations? a. The lowest of all nations. b. A bit lower than average. c. Average. d. A bit higher than average. e. The highest of all nations.
Problem 2
Which of the following make a person less likely to have health insurance?Select one or more answers from the cboices shown. a. Working for a larger firm. b. Being a low-wage worker. c. Being employed. d. Having excellent health. e. Being chronically ill.
Problem 3
A patient named Jen visits Dr. Jan. Dr. Jan is nearly certain that Jen only has a cold. But because Dr. Jan is afraid of malpractice lawsuits, she orders an extensive battery of tests just to make sure that Jen can never claim - if she turns out to have something more severe-that Dr. Jan shirked her duties as a medical professional. Dr. Jan's behavior is an example of: a. Asymmetric information. b. Fee-for-service. c. Defensive medicine. d. Positive externalities.
Problem 4
All MegaCorp employees who stay on the job for more than three years are rewarded with a 10 percent pay increase and coverage under a private health insurance plan that MegaCorp pays for. Tina just passed three years as a MegaCorp employee and reacts to having health insurance by taking up several dangerous sports because now she knows that the insurance plan will pay for any injuries that she may sustain. This change in Tina's behavior is known as: a. Defensive medicine. b. Asymmetric information. c. The moral hazard problem. d. The personal mandate.
Problem 5
By increasing demand, health insurance creates: a. A deadweight loss related to overconsumption. b. A deadweight loss related to underconsumption. c. Neithe be above.
Problem 6
Ralph will consume any health care service just as long as its MB exceeds the money he must pay out of pocket. His insurance policy has a zero deductible and a 10 percent copay, so Ralph only has to pay 10 percent of the price charged for any medical procedure. Which of the following procedures will Ralph choose to consume?will Ralph choose to consume? a. An 800 dollars eye exam that has an MB of 100 dollars to Ralph. b. A 90 dollars hearing test that has an MB of 5 dollars to Ralph. c. A 35,000 dollars knee surgery that has an MB of 3,000 dollars to Ralph. d. A 10,000 dollars baldness treatment that has an \(M B\) of 16,000 dollars to Ralph.
