Multiple Choice Quiz


1	People who buy insurance because they fear the financial uncertainty associated with illnesses are referred to by economists as
		A)	risk loving.
		B)	risk averse.
		C)	risk neutral.
		D)	risk taking.


2	If you have to pay the first $400 of health care expenses and 30% of everything over $400 up to $2000 when the insurance company pays everything then the "$400" is called the ______ the "30%" is the ______, and the $2000 is the _______ .
		A)	deductible; co-payment; maximum out-of-pocket
		B)	liability; indemnity; cap
		C)	deductible; indemnity; maximum out-of-pocket
		D)	liability; co-payment; cap


3	The health insurance plan that maximizes consumer choice but comes at a high financial cost is called
		A)	preferred provider.
		B)	health maintenance.
		C)	fee-for-service.
		D)	medical savings account.


4	If a health plan requires that you see a general practitioner before you see a specialist then the plan is using a _______________.
		A)	Primary Care Physician or Gatekeeper to keep down expenses
		B)	Loss-leader to maintain business
		C)	Specialized Care Doctor to maintain quality
		D)	Primary Care Physician or Gatekeeper to maintain quality


5	Medicare Part A is financed primarily through
		A)	premiums and a 1.45% payroll tax on employers and employees.
		B)	premiums and the corporate income tax.
		C)	a 1.45% payroll tax on employers and employees with more from the personal income tax.
		D)	sales taxes on tobacco.


6	Medicare Part B is financed primarily through
		A)	premiums and a 1.45% payroll tax on employers and employees.
		B)	premiums and general revenue from income taxes.
		C)	from the personal income tax exclusively.
		D)	sales taxes on tobacco.


7	If an old person is ill and must first be hospitalized but will ultimately end up in a nursing home to live out their final days then who pays
		A)	the patient only
		B)	the patient and both Medicare and Medicaid
		C)	the patient and Medicare
		D)	Medicare only


8	Of the 40-45 million Americans who go part of the year without health insurance ______ are without health insurance all year
		A)	about half
		B)	less than 10%
		C)	more than 75%
		D)	about one-quarter


9	Providing free health coverage to the poor
		A)	raises the price of health care to taxpayers as well as the insured and increases the amount used.
		B)	lowers the price of health care to taxpayers as well as the insured and increases the amount used.
		C)	raises the price of health care to taxpayers as well as the insured but lowers the amount used.
		D)	lowers the price of health care to taxpayers as well as the insured and lowers the amount used.


10	The law forbids the sale of organs for Medical use, while this may be a "moral" policy, economists suggest that this contributes to the ______ of these organs
		A)	shortage
		B)	surplus
		C)	availability
		D)	use

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