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| 1 | |
Use the following table to answer the next question:
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Refer to the data in the table showing the supply and demand schedules for a particular medical procedure. In the absence of medical insurance, the equilibrium price and quantity would be: |
| | A) | $10,000 and 850 |
| | B) | $8,000 and 900 |
| | C) | $6,000 and 800 |
| | D) | $4,000 and 700 |
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| 2 | |
Between 1960 and 2004, medical spending as a percentage of GDP: |
| | A) | increased at a rate approximately equal to the increase in physician productivity |
| | B) | increased from about 5% to 16% |
| | C) | decreased because of improvements in productivity and medical technology |
| | D) | remained approximately constant, although absolute levels of spending increased |
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| 3 | |
Advocates of a system of national health insurance claim all of the following, except: |
| | A) | it would reduce administrative costs |
| | B) | it would tie health care availability to employment |
| | C) | it would allow the government to use its market power to contain cost increases |
| | D) | it would allow patients to choose their own physician |
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| 4 | |
Beginning in 2006, Medicare Part D: |
| | A) | capped malpractice awards for "pain and suffering" |
| | B) | abolished the right of employers to require their workers to establish heals savings accounts |
| | C) | expanded hospitalization insurance coverage to workers aged 59 to 65 |
| | D) | provided prescription drug coverage to Medicare-eligible citizens |
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| 5 | |
Data indicate that: |
| | A) | physician incomes are low relative to other professions such as law and engineering |
| | B) | the rate of return on medical training is low relative to other professions because of the high costs of training |
| | C) | the increased supply of physicians has outpaced the increase in demand for physicians' services |
| | D) | the main cause of slow growth of physician supply is the increase in physician malpractice awards |
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| 6 | |
In industrially advanced countries, the quantity of health care demanded increases at about the same pace as income, suggesting that the: |
| | A) | income elasticity of demand is about 1 |
| | B) | income elasticity of demand is about 0 |
| | C) | price elasticity of demand is about -2 |
| | D) | demand for health care is an inferior good |
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| 7 | |
Public and private insurance accounts for about 80% of all health care spending. |
| | A) | True |
| | B) | False |
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| 8 | |
Unlike their HMO counterparts, physicians in PPOs: |
| | A) | are paid directly by insurance companies |
| | B) | charge on a fee-for-service basis |
| | C) | are prohibited from owning outside services such as diagnostic imaging or laboratory services |
| | D) | charge a fixed amount per member |
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| 9 | |
In addition to unequal access to care, the major problem facing the U.S. health care industry is: |
| | A) | declining quality of care relative to other advanced economies |
| | B) | the reduction in the number of physicians per capita |
| | C) | the rapidly rising cost of health care |
| | D) | the development of a patients' bill of rights |
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| 10 | |
The number of mountain climbing accidents has risen in the past years, in part because of the increased availability of cell-phones. These phones have made the sport more attractive to less-experienced climbers because they know they can call for help if needed. This illustrates: |
| | A) | the Coase Theorem |
| | B) | the moral hazard problem |
| | C) | the DRG system |
| | D) | the free rider problem |
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