Question 21(2.5 points)

Which of the following is the best reason why people buy insurance?

Question 21 options:

They're already sick.

They can't afford medical care without it.

They're risk-averse.

They're morally hazardous.

Question 22(2.5 points)

Most of the variation in healthcare demand between countries can be explained using just one variable: the country's

Question 22 options:

income.

population.

geographical size.

available physicians.

Question 23(2.5 points)

Why is employer-based insurance attractive to insurance companies?

Question 23 options:

They attract lower-than-average risk subscribers.

They know they have a tremendous source of consumers ready to buy their product.

They're more effective in removing moral hazards.

They avoid adverse selection.

Question 24(2.5 points)

Disparity between a high cost of healthcare per person and a population's poor health exists because of extreme inequality between which groups?

Question 24 options:

The poor and very wealthy

The elderly and the young

Men and women

The educated and the uneducated

Question 25(2.5 points)

Globally, _______ spends the most on healthcare per person by a fair margin, yet the health of the country's population doesn't reflect this huge input of resources.

Question 25 options:

the United States

Europe

Singapore

China

Question 26(2.5 points)

Studies have found that _______ costs are more important than _______ costs in healthcare decisions.

Question 26 options:

time; money

money; time

value; time

money; value

Question 27(2.5 points)

Which of the following suppliers provide inputs to the healthcare production process?

Question 27 options:

Hospital

Pharmaceutical companies

Family practices

Hospices

Question 28(2.5 points)

Which of the following is a catch-all phrase that describes a variety of different kinds of insurance instruments?

Question 28 options:

Coinsurance

Community rating

Managed care

Utility functions

Question 29(2.5 points)

Which of the following is the formula for elasticity of demand with respect to price?

Question 29 options:

(% change in the quantity of healthcare demanded) divided by (% change in price of healthcare)

(% change in quantity supplied) divided by (% change in price)

(% change in quantity X demanded) divided by (% change in price of Y)

(% change in quantity supplied) divided by (% change in price of healthcare)

Question 30(2.5 points)

Generally, as socioeconomic benefits _______ for a given population, health levels _______.

Question 30 options:

decrease; increase

increase; decrease

decrease; decrease

increase; remain unchanged