Full Test Bank Chapter 10 Life Health And Health Care

Chapter 10 Multiple Choice Questions

1. Studies of willingness to pay for non-monetary benefits or costs through wages, travel costs, etc. are referred to as
2. Contingent valuation studies
3. Benefit cost studies
4. Revealed preference studies
5. Policy studies
6. If Jane is willing to pay $200 for shoes that reduce her risk of death from sore feet by .0001 (1/10,000), what is her implied value of life?
7. $200,000
8. $1,000,000
9. $2,000,000
10. $10,000
11. Infinity
12. A statistical life is
13. The average risk of death associated with a given action
14. A life that might be lost due to a risky activity, but cannot be identified
15. The standard deviation of the average years of life
16. A life with unusual levels of risk
17. Which one of the following is NOT a common criticism of the discounted future earnings measure of the value of life?
18. It is often used in lawsuits
19. It ignores non-work aspects of life
20. It can discriminate against low income groups
21. It can discriminate against the elderly
22. None of the above. All are legitimate criticisms.
23. The formula for calculating the value of life is
24. Prayer and reflection
25. Average income x average length of life
26. ∆Income/∆death risk
27. ∆Income x ∆death risk
28. Child safety seats make more sense in autos than in airplanes because
29. Crashes are more common in autos
30. Safety seats are less likely to save lives in an airplane crash
31. The cost of an extra airline seat may cause people to travel in more dangerous ways
32. All of the above
33. None of the above, child safety seats make sense in both.
34. The measure of health benefits discussed in the chapter is known as
35. Present value discounting
36. Qualitatively Analyzed Life Value
37. Health-related decision trees
38. Quality-Adjusted Life Years
39. If a healthy year is valued at 1, an inactive year is valued at .75, and each healthy year is worth $50,000, what are the (undiscounted) health benefits of a policy that adds 2 healthy years and 2 inactive years to one’s life?
40. $3.50
41. $175,000
42. $250,000
43. Infinity
44. Which one of the following is NOT one of the market imperfections in the health care market?
45. Unequal insurance coverage across states
46. The external harms of infectious disease
47. Unequally distributed information favoring doctors
48. Financial externalities caused by hospital “cost shifting”

[insert Figure 10-4B or Figure 10-4 without the

1. If point A is on the full-cost budget line, which of the budget line points in Figure 10-4 represents (1) a co-payment and 2) an annual premium with free visits?
2. B is the co-payment, and D is the premium
3. E is the co-payment, and C is the premium
4. D is the co-payment, and E is the premium
5. C is the co-payment and B is the premium
6. Which of the following managed care organizations is most common in the U.S. as of 2014?
7. Health Management Organization
8. Preferred Provider Organization
9. High Deductible Plan
10. Weight Watchers International
11. Which is the common but more official name for ‘Obamacare”
12. The Abominable Care Act
13. The Efficient Care Act
14. The Equitable Care Act
15. The Affordable Care Act
16. The Train Wreck