Chapter 7 The Demand for Health Care Test Bank Dewar

Dewar ASQZ

Chapter 7

True/False

1. Although it has been commonly believed that pharmaceutical expenses increase among the elderly, research has shown that spending growth for these products expands faster among younger age groups for whom insurance coverage is more extensive.

<Answer: True>

<Complexity: Easy>

<A-head: The Demand for Health Care>

<Subject: Chapter 7, Page 50>

Fill-in-the-Blank

2. Studies using ____________ data yield considerably higher income elasticity coefficients for health care.

<Answer: macroeconomic>

<Complexity: Moderate>

<A-head: Health Care: A Normal or Superior Good?>

<Subject: Chapter 7, Page 53>

Fill-in-the-Blank

3. A wide range of studies have generally found health care to be a _________________, and this is true for both industrialized and developing countries.

<Answer: superior good>

<Complexity: Moderate>

<A-head: Health Care: A Normal or Superior Good?>

<Subject: Chapter 7, Page 53>

Multiple Response

4. The demand for health care depends on which of the following?

[1] Age

[2] Insurance

[3] Technology

[4] Health state

[5] Research and development

[6] Education

<Answer: 1, 2, 4, 6>

<Complexity: Difficult>

<A-head: Summary>

<Subject: Chapter 7, Page 53>

Fill-in-the-Blank

5. The association between income and the amount of health care utilized shows that health care can be a ___________________ when studies are based on individual responses.

<Answer: normal good>

<Complexity: Moderate>

<A-head: Summary>

<Subject: Chapter 7, Page 53>

True/False

6. Health care for which substitutes exist have lower price elasticities than those with fewer substitution.

<Answer: False>

<Complexity: Easy>

<A-head: Summary>

<Subject: Chapter 7, Page 53>

Multiple Choice

7. What type of goods and services have lower price elasticities because these goods or services are used jointly?

[1] Normal goods and services

[2] Superior goods and services

[3] Complementary goods and services

[4] Exclusive goods and services

<Answer: 3>

<Complexity: Moderate>

<A-head: Asymmetry of Information and Imperfect Agency>

<Subject: Chapter 7, Page 50>

Multiple Response

8. A characteristic of the healthcare market is uncertainty about which of the following?

[1] Physician competence

[2] Diagnoses

[3] Available treatments

[4] Effectiveness

[5] Access to medical care

<Answer: 1, 3, 4>

<Complexity: Difficult>

<A-head: Asymmetry of Information and Imperfect Agency>

<Subject: Chapter 7, Page 50>

Multiple Choice

9. The need for what type of health care increases with age due to the growing complexity of health conditions as people age?

[1] Ambulatory care

[2] Inpatient services

[3] Medications

[4] Durable medical equipment

<Answer: 2>

<Complexity: Moderate>

<A-head: The Demand for Health Care>

<Subject: Chapter 7, Page 50>

True/False

10. A comprehensive review of the literature and later research demonstrates that physicians do not respond to financial incentives and do not influence demand in response to self-interest.

<Answer: False>

<Complexity: Easy>

<A-head: The Demand for Health Care>

<Subject: Chapter 7, Page 51>