Question : 21) The Congressional Budget Office estimates that the Patient Protection : 1267073

21) The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (PPACA) will

A) increase government spending by just under $1 trillion over 10 years.

B) cost the government significantly more than the additional taxes and fees enacted under the law will bring in.

C) eliminate the budget deficit within 10 years.

D) actually reduce government spending over a 20 year period.

22) The Patient Protection and Affordable Care Act (PPACA) is scheduled to be fully implemented by 2019, at which point

A) current budget cuts are expected to have completely offset the cost of the program.

B) more than 30 million additional individuals are expected to have health care coverage.

C) all hospitals in the United States will be taken over by the federal government.

D) private health insurance companies will no longer exist in the United States.

23) Some economists and policymakers who are in favor of government-provided health care believe that providing health care will generate

A) additional moral hazard.

B) positive externalities.

C) greater asymmetric information.

D) more adverse selection.

24) Economists who support market-based reforms for health care believe that increased competition among providers of health care would ________ costs and ________ economic efficiency.

A) increase; increase

B) increase; decrease

C) decrease; increase

D) decrease; decrease

25) A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services. This would tend to ________ economic efficiency by ________ the costs of medical services

A) increase; increasing

B) increase; decreasing

C) decrease; increasing

D) decrease; decreasing

26) Most employees ________ pay taxes on the value of health insurance provided by employers, and most people ________ get a tax break when buying individual health insurance policies.

A) do; do

B) do; do not

C) do not; do

D) do not; do not

27) Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending. Such changes would make it more likely that

A) consumers would pay prices closer to the actual costs for routine medical care.

B) employers would provide more generous medical coverage to their employees.

C) insurance deductibles would decrease.

D) the quantity of medical services demanded would increase.

28) Economists John Cogan, R. Glenn Hubbard, and Daniel Kessler have estimated that repealing the tax preference for employer-provided health insurance would

A) significantly reduce the effectiveness of the health care received by those enrolled in these programs.

B) increase overall spending on health care as consumers would have to pay a higher price for medical services.

C) drive up prices for health care coverage since insurance reimbursements to doctors would be reduced.

D) reduce spending by people enrolled in these programs by 33 percent.

29) Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

A) nationalize health care so that all health services are government funded and operated

B) give every citizen a fixed amount of money that can only be spent on health care services

C) reimburse consumers for preventive health care expenditures so as to avoid costly emergency medical treatments in the future

D) standardize the tax treatment of employer-based health insurance benefits and private spending on health care

30) Under the Small Business Health Options Program (SHOP) provision of the health care plan, a small firm’s employees would be pooled with the employees of other small firms. When an insurance plan covers a large number of people,

A) moral hazard is reduced.

B) adverse selection problems are reduced.

C) asymmetric information issues are eliminated.

D) negative externalities become more pronounced.