Question 1:  What is a form of intangible capital that includes the skills and other knowledge that workers possess or acquire through education, training, and health care that yields valuable productive services over time?

• Labor-Leisure Trade-Off Capital
• Human Capital
• Expected Value Capital
• Long Run Capital

Question 2. Personal computers are likely to have a _______ rate of depreciation than health capital because of ________.

• lower; improving technology making replacements more productive
• higher; improving technology making replacements more productive.
• lower; more favorable tax treatment
• higher; longer useful life

Question 3. Time is an important factor in health production because ____________.

• all consumers could work and earn more money if they did not spend time producing health
• no health-producing activities involve time-spending activities such as traveling to the provider
• with only 24 hours in a day, time spent producing health must come from some other activity
• we forego current consumption to improve health, which lasts into the future

Question 4. Coinsurance refers to ________________.

• a fixed dollar or percentage fee per treatment
• an amount that the insured must pay out-of-pocket, before the insurer will pay
• the price of insurance to the insured
• the cost of insuring one's family

Question 5. Which of the following features does not characterize a desirable aspect of insurance arrangements?

• The number of insured should be large, and they should be independently exposed to the potential loss.
• The chance of loss should be measurable
• The insurer should be guaranteed positive economic profits
• The losses should be accidental from the viewpoint of the person who is injured

Question 6. Moral hazard refers to ________.

• illegal behavior by insurers
• illegal behavior by consumers
• behavior that occurs solely because of the contractual insurance arrangement
• consumers' choosing particular plans based on their health statuses

Question 7. Compared to men, women have ________ health expenditures earlier in their lives ___ and ____ health expenditures later in their lives.

• lower; lower
• higher; lower
• lower; higher
• higher; higher

Question 8. Low income Americans are found to receive worse care than others as evaluated by 15 of 20 core measures. This difference can be explained by _________.

• higher income
• better access to care
• different care-seeking behaviors
• geographical differences

Question 9. Increased health insurance since World War II explains about ____ percent of the increase in expenditures per capita:

• 10
• 20
• 30
• 40

Question 10. Many of the more industrialized countries have sought to reform their health care systems by introducing elements of ________.

• increased cost sharing
• multiple payer plans
• decreased global budget
• non-government service provision

Question 11. Individual insurance mandates require ________________.

• taxpayers to enroll in government-sponsored insurance
• taxpayers to buy insurance from private sellers
• all consumers to get insurance, whether from employers, the private market, or the government
• employers to stop offering insurance

Question 12. Employer mandates require________.

• all employers to provide health insurance
• all employers to increase workers' pay so they can buy health insurance
• all employers to provide pharmaceutical coverage
• all employers to decrease workers' pay to compensate for health insurance

Question 13. Total expenditure for universal health insurance would______ the true cost because ________.

• overstate; the uninsured are already receiving uncompensated care
• understate; employers would lose money
• precisely estimate; we have good estimates of health care costs
• understate; insurers could not offer this coverage without a subsidy

Question 14. In the United States, employer-provided health insurance distorts the choice between health care and other items because ________.

• health insurance may lead to over-consumption of health care due to moral hazard
• employer contributions are tax exempt, thus reducing the price of insurance relative to other goods
• workers believe that health insurance is free
• health insurance may lead to under-consumption of health care and preventative care

Question 15. Advocates of "single payer" national health insurance believe it is desirable because it ________.

• reduces administrative costs by reducing multiple forms that hospitals, clinics, and nursing homes must fill out
• eliminates a wastefully competitive health insurance industry
• provides less costly variety than would privately provided insurance
• can achieve economies of scale in providing insurance

Question 16. Pay for performance (P4P) plans ________.

• have proven successful in reducing health expenditures
• require detailed performance measures to be successful
• have improved the Canadian health care system
• will always increase health care quality

Question 17. The Patient Protection and Affordable Care Act (PPACA) features which of the following?

• A "Cadillac tax" on high-cost employer-provided health insurance
• A penalty for employers with 10 or fewer full-time employees that do not offer coverage
• A single payer for all medical expenses
• A tax benefit for large businesses that provide health insurance

Question 18. When a person decides to be vaccinated against a contagious disase, this creates a ________ for other people in the community.

• positive external benefit
• negative external factor
• medical crisis
• shortage of medical care

Question 19. Who provides the majority of insurance for the population of the United States?

• Employers
• Medicare
• Military
• The majority of the population is uninsured.

Question 20. Which of the following is the health care reform legislation passed by Congress and signed by President Obama in March 2010?

• The National Health Insurance Act
• The Health Savings Accounts Act
• The Patient Protection and Affordable Care Act
• The Social Security Act