Question 1

According to the text, government spending accounts for about ________ percent of all U.S. health care expenditures.

Accepted Answer

The answer of According to the text, government spending accounts...

Question 2

An example of third-party financing of health care is

Accepted Answer

Medicare is a third-party financing program, in which the government pays for a portion of health care costs for individuals over the age of 65, people with certain disabilities, and those with end-stage renal disease. This means that Medicare is not paid for directly by the patient, but rather is funded by taxes and government revenue.

Question 3

Some economists argue that the official poverty figures overstate poverty in this country. Why?

Accepted Answer

The answer of Some economists argue that the official poverty...

Question 4

Rising health care spending is a problem confronting the federal government because

Accepted Answer

The rapid increase in federal spending on health care over the last thirty years is a problem because it puts a strain on the federal budget and limits the government's ability to fund other important programs and services. This trend is expected to continue as the population ages and more people require medical care.

Question 5

The top 5 percent of health care users in the United States account for

Accepted Answer

According to various studies, the top 5 percent of health care users in the United States account for over 50 percent of all health costs. These individuals typically have chronic conditions or complex medical needs that require frequent and expensive medical interventions.

Question 6

Attempts to alleviate poverty have included all of the following income-maintenance programs EXCEPT

Accepted Answer

401(k) plans are not an income-maintenance program designed to alleviate poverty. Instead, they are a voluntary retirement savings plan offered by employers to help individuals save for their future. The other options listed are all government-run programs designed to provide support to individuals and families living in poverty.

Question 7

An important contributor to rising U.S. health care costs in recent years is

Accepted Answer

The aging of the population is a major contributor to rising U.S. health care costs as older individuals tend to have more chronic conditions and require more medical interventions.

Question 8

How can absolute poverty be eliminated? How can relative poverty be eliminated? Does the elimination of one lead to the elimination of the other? Explain.

Accepted Answer

The answer of How can absolute poverty be eliminated? How...

Question 9

The impact of technological change in the health care area has been to

Accepted Answer

Technological advancements in healthcare have significantly improved the quality of care, introducing more effective treatments, diagnostic tools, and medical devices. However, these innovations often come with high development and implementation costs, which can increase the overall costs of healthcare services.

Question 10

Among the reasons that health care expenditures have grown so rapidly in the United States over the last two decades are all of the following EXCEPT

Accepted Answer

The other options, including the aging of the population, expensive new medical technologies, and third-party financing, are all contributing factors to the rapid growth of health care expenditures in the United States. However, an emphasis on wellness programs and preventable medicine could actually help to reduce health care costs by preventing the need for expensive medical treatments and interventions.

Question 11

An individual with no deductible on his or her health insurance policy will tend to engage in a lifestyle that is less healthy than a person with a $2,000 insurance deductible. This is said to be a problem of

Accepted Answer

Moral hazard refers to the tendency of individuals to take risks or engage in behaviors that they might not otherwise if they did not have insurance or if the cost of their behavior was higher. In the case of health insurance, individuals with no deductible may be more likely to engage in risky behaviors or make less healthy choices because they do not have to pay anything out of pocket. This can lead to increased healthcare costs for both the individual and the insurer.

Question 12

The incidence of absolute poverty is reduced by

Accepted Answer

The answer of The incidence of absolute poverty is reduced...

Question 13

Which of the following is not a reason for rising health care expenditures in the United States over the last 40 years?

Accepted Answer

Discovery of new diseases is not a reason for rising health care expenditures in the United States over the last 40 years. The other factors listed, such as aging of the population, technological change, and third-party financing of health care expenditures, have all contributed to the increase in health care costs.

Question 14

Describe four of the five major income maintenance programs in the United States that were discussed in the text.

Accepted Answer

The answer of Describe four of the five major income...

Question 15

All of the following aim to reduce income inequality EXCEPT

Accepted Answer

Regressive taxes actually worsen income inequality as they disproportionately affect lower-income individuals. Social Security payments, earned income tax credits, and food stamp programs all aim to provide financial support to lower-income individuals and reduce income inequality.

Question 16

The impact of technological change in the health-care area has been to

Accepted Answer

Technological advancements in the health care sector have led to the development of new and innovative medical procedures and treatments that have significantly improved the quality of health care available to patients. However, these advanced treatments and procedures often come at a high cost, which has contributed to the rising costs of health care. Therefore, the impact of technological change in the health-care area has been to increase both the quality of health care and the monetary costs of health care.

Question 17

A problem with third-party financing of so much of health care is that

Accepted Answer

Third-party financing of health care, such as through insurance plans or government programs, creates a situation where patients are not directly paying for the medical services they receive. As a result, the demand for medical services can increase because patients are not as concerned with the cost. This leads to higher health care costs overall, as providers can charge more when there is higher demand.

Question 18

Which of the following is considered a "third party" within the medical services industry?

Accepted Answer

A "third party" refers to a party other than the patient and the medical provider involved in a healthcare transaction. In this case, the private insurance company is considered a third party as it is not the patient seeking medical services nor the medical provider delivering the services.

Question 19

One problem with third-party financing of health care is that

Accepted Answer

Third-party financing of health care, such as insurance companies paying for services, can lead to moral hazard where people have more incentive to utilize health care services because they are not directly bearing the full cost. This can lead to overutilization of health care resources.

Question 20

The percentage of national income spent on health care

Accepted Answer

The percentage of national income spent on health care has steadily increased since 1965, with occasional dips and fluctuations.

Quiz 30: Income, Poverty, and Health Care