ECO:MIRCO: Chapter 22 – Flashcards

All of the following factors lead to overconsumption of health care, except: A. The practice of defensive medicine B. Health insurance that pays most of the health care costs C. Government tax subsidy on employer-financed health insurance D. Rising incomes resulting from economic growth

As a percentage of GDP, U.S. health care spending is: A. higher than that for Germany and Japan but lower than that of the United Kingdom and Sweden. B. higher than for any other major industrial country. C. lower than that for Canada. D. nearly identical to that of the other major industrial nations.

Defensive medicine refers to the idea that: A. it is more cost-efficient to prevent illnesses than to cure them. B. physicians may require unnecessary testing as a means of protecting themselves against malpractice suits. C. doctors know much more about diagnosing and treating illnesses than do health care consumers. D. physicians do not advertise their services or fees.

Employer-provided private health insurance: A. is unique to the United States and not typically found in other countries. B. is the most common form of health care provision in industrialized countries. C. substantially reduces the cost of health care provision relative to national health insurance schemes. D. provides a small percentage of health care spending in the United States.

Federal tax policy: A. treats employer health insurance premiums as taxable income. B. subsidizes health insurance and thereby increases the demand for health care. C. subsidizes health insurance and thereby decreases the demand for health care. D. corrects the overallocation of resources to the health care industry that would otherwise exist.

For many years, the price of medical care in the United States has: A. risen at the same rate as the overall price level. B. risen at a faster rate than the overall price level. C. risen, but at a slower rate than the overall price level. D. fallen.

In the health care market: A.demand has increased relative to supply. B. supply has increased relative to demand. C. neither demand nor supply has changed significantly in the past two decades. D. the concepts of demand and supply are irrelevant.

Insurance companies use deductibles and copayments to: A. increase access to health care. B. reduce health care costs by discouraging overuse of the health care system. C. prevent small companies from self-insuring their workers. D. keep government out of the health care insurance industry.

One major factor contributing to rising health care costs is: A. The increased use of expensive outpatient facilities B. Reduced insurance coverage of new medical illnesses C. Payments for medical services given to immigrants D. The lack of patients' concern regarding cost of treatments

The medically uninsured may wait until their illness reaches a critical stage before going to the hospital for admittance or emergency care. Hospitals in the U.S. provide how much of this uncompensated or "free" health care services per year? A. About $6 billion B. About $12 billion C. About $36 billion D. About $58 billion