Question : 12.3 Health-Care Markets 1) In the health insurance market, adverse selection : 1238687

12.3 Health-Care Markets

1) In the health insurance market, adverse selection occurs when

A) chronically ill people buy health insurance.

B) insured people go to the doctor unnecessarily.

C) patients sue their doctor.

D) people with health insurance tend to behave more recklessly.

E) chronically ill people are unable to buy health insurance.

2) If a health insurance company offers coverage regardless of age, health status, or smoking history, it is likely to suffer

A) moral hazard problems.

B) adverse selection problems.

C) lower costs.

D) low demand for its product.

E) a screening equilibrium.

3) In the health insurance market, moral hazard occurs when

A) chronically ill people buy insurance.

B) chronically ill people cannot buy insurance.

C) insured people adopt an unhealthy lifestyle.

D) patients sue their doctor.

E) chronically ill people refuse appropriate medical treatment.

4) In the market for health care services, Health Maintenance Organizations

A) exist to insure people with pre-existing medical conditions.

B) overprovide medical care and thereby result in increased costs.

C) help overcome adverse selection by enrolling only healthy clients.

D) help overcome moral hazard by monitoring the quality of the service.

E) None of the above answers is correct.

5) Which of the following has a positive externality and hence can be underprovided?

A) Chronically ill people are not allowed to buy insurance.

B) health insurance purchased through an employer

C) vaccination

D) Health Maintenance Organizations

E) None of the above has a positive externality.

6) Which of the following statements about health-care systems is correct?

A) Most major nations do not have extensive government-funded insurance programs.

B) U.S. expenditure per person on health care is near the middle of the range of expenditures made in major nations.

C) Unlike other major nations, private health insurance is available only in the United States.

D) In the United States, Medicare and Medicaid account for slightly less than 90 percent of total expenditures on health care.

E) Every major country except the United States has a comprehensive national health-care system.

7) Most observers suggest that health care in the United States faces two major problems:

A) too many people have health insurance, and health care costs too much.

B) a significant shortage of doctors, and health care costs too much.

C) a vast oversupply of hospital rooms and a significant shortage of doctors.

D) Health Maintenance Organizations are too common, and too many people do not have health insurance.

E) too many people do not have health insurance, and health care costs too much.

8) Health-care vouchers have been proposed. These vouchers would

A) cap total expenditure on health care but do nothing to solve the problem of uninsurance.

B) limit choice and would create long waiting times for health care service.

C) solve the problem of the doctor shortage but would not affect the problem of over spending on health care.

D) ensure universal coverage for health care and would cap total expenditure on health care.

E) None of the above answers is correct.

9) Which of the following is not a problem in health-care markets?

A) Hospitals are not trying to maximize their profit.

B) asymmetric information

C) public-health externalities

D) a missing insurance market

E) None of the above answers is correct; that is, all the answers are problems in health-care markets.

10) Moral hazard in the market for health-care services leads

A) patients to adopt healthy life styles.

B) to a separating equilibrium.

C) to all people buying health insurance.

D) to healthy people not buying health insurance.

E) to providers overtreating patients..

11) The missing insurance market in health care is the insurance market for

A) young healthy people.

B) infectious diseases.

C) people who have pre-existing health problems.

D) people in Health Maintenance Organizations.

E) vaccinations.

12) Vaccination against infectious diseases ________ so private markets will provide ________ efficient quantity of vaccination.

A) is a public good; less than

B) is a public good; the

C) leads to adverse selection; less than

D) has a positive externality; less than

E) has a positive externality; the

13) Compared to other major nations, the United States spends ________ on health care and achieves ________ efficiency.

A) less; greater

B) more; about the same

C) less; less

D) more; less

E) about the same; less

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July 1, 2023

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.