Test Bank Answers Public Policy and Health Economics Ch18

Dewar ASQZ

Chapter 18

True/False

1. The fundamental difference between the approach to the provision of health care in the United States and most other industrialized nations is that the United States is more market oriented and insurance coverage is less inclusive.

<Answer: True>

<Complexity: Easy>

<A-head: Introduction>

<Subject: Chapter 18, Page 149>

Multiple Choice

2. The market system relies more heavily on which of the following as a rationing device?

[1] Price mechanism

[2] Supply mechanism

[3] Demand mechanism

[4] Equity mechanism

<Answer: 1>

<Complexity: Moderate>

<A-head: The Market-Based System>

<Subject: Chapter 18, Page 149>

Multiple Choice

3. Which of the following is an insurance program for families who have incomes that are too high to be considered for Medicaid but who cannot afford private insurance?

[1] Advantra

[2] Medicare

[3] Children’s Health Insurance Program

[4] Social Security

<Answer: 3>

<Complexity: Moderate>

<A-head: The Market-Based System>

<Subject: Chapter 18, Page 149>

Multiple Response

4. Critiques of a healthcare system usually subject it to which of the following criteria?

[1] Efficiency

[2] Accessibility

[3] Equity

[4] Reliability

[5] Quality

<Answer: 1, 3>

<Complexity: Difficult>

<A-head: The Market-Based System>

<Subject: Chapter 18, Page 149>

True/False

5. It is widely believed that the social costs of health care for the uninsured are higher than for the insured, given that our society often does not refuse to provide health care to the sick, even if they cannot pay.

<Answer: True>

<Complexity: Easy>

<A-head: The Market-Based System>

<Subject: Chapter 18, Page 150>

Multiple Choice

6. Several economists have demonstrated which of the following is the largest contributor to rising healthcare costs?

[1] Aging population

[2] Technological advances

[3] Rising insurance premiums

[4] Rising cost of prescription medication

<Answer: 2>

<Complexity: Moderate>

<A-head: The Market-Based System>

<Subject: Chapter 18, Page 150>

Multiple Choice

7. Which of the following provides an incentive for providers of care to offer more treatments because payment is dependent on the quantity rather than the quality of care?

[1] Retrospective payment system

[2] Prospective payment system

[3] Fee-for-service payment system

[4] Single-payer payment system

<Answer: 3>

<Complexity: Moderate>

<A-head: The Market-Based System>

<Subject: Chapter 18, Page 150>

True/False

8. Monopolistically competitive markets have a few dominant firms and many small firms with little market power.

<Answer: True>

<Complexity: Easy>

<A-head: The Market-Based System>

<Subject: Chapter 18, Page 150>

Fill-in-the-Blank

9. Health plans providing information about the costs of particular services are likely to be more helpful in decisions about_________________, where the decision to receive care is more discretionary.

<Answer: non-acute care>

<Complexity: Moderate>

<A-head: The Market-Based System>

<Subject: Chapter 18, Page 150>

Multiple Choice

10. Which of the following is defined as the process of selling the same product at different prices to different buyers based on some characteristic of the buyer’s in order to maximize profits?

[1] Price adjustment

[2] Price loyalty

[3] Price discrimination

[4] Price discrepancy

<Answer: 3>

<Complexity: Moderate>

<A-head: The Market-Based System>

<Subject: Chapter 18, Page 150>