Multiple Choice Questions:
1. Investing in health care can
a. Improve worker productivity.
b. Reduce the number of missed workdays.
c. Extend people’s working lives.
d. Shift a society’s production possibilities curve outward over time.
e. Do all of the above.
2. The largest proportion of health care expenditures comes from which of the following sources?
a. Private insurance funds
b. Public health care expenditures
c. Out-of-pocket expenditures from consumers
d. Emergency room care
3. The demand for health care has increased in recent decades due to
a. Increased income.
b. Increased levels of insurance coverage.
c. An aging population.
d. All of the above.
4. Health insurance tends to
a. Reduce the price of health care services to consumers.
b. Increase the quantity of health care services demanded.
c. Increase the total expenditures on health care.
d. Do all of the above.
5. A person covered by more generous health insurance, other things equal, would be
a. More likely to smoke cigarettes.
b. More likely to eat a healthy diet.
c. More likely to exercise regularly.
d. More likely to do all of the above.
6. Health insurers attempt to reduce the risk from adverse selection by
a. Limiting periods of open enrollment in health care plans.
b. Requiring physical exams.
c. Ensuring large groups.
d. Doing all of the above.
7. Reasons for restricted competition in the health care market do not include
a. Compulsory licensing, which restricts entry into the health care market.
b. Economies of scale in the provision of certain health care services.
c. Collusion among sellers.
d. The high cost of advertising health care products.