Question

13) The prominence of employer-provided health insurance in the U.S. has had the following

major consequences, except

A) overuse of health care services.

B) rapidly rising prices of health care.

C) reform efforts have mostly focused on regulation of health insurance.

D) heightened awareness of employees about the true costs of their health care.

14) The burden of Medicaid costs is

A) the sole responsibility of states.

B) the sole responsibility of the Federal government.

C) shared by the states and Federal government.

D) shared by the states and the individual receiving the benefits.

17) Raising the deductibles and copayments is a way of dealing with the

A) adverse selection problem of health insurance

B) moral hazard problem of health insurance.

C) asymmetric information between doctors and patients.

D) externalities of health care.

24)Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay

$40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of

producing the third unit is $100, what is the minimum amount that Susie must be willing

to pay for it to be efficient for government to produce the third unit?

A) $35

B) $100

C) $65

D) The amount cannot be determined with the information provided.

26)The following data are for a series of increasingly extensive flood-control projects.

(Total Cost Per Year) (Total Benefit Per Year)

Plan A = Levees $10,000 $16,000

Plan B = Small Reservoir 24,000 36,000

Plan C = Medium Reservoir 44,000 52,000

Plan D = Large Reservoir 72,000 64,000

For Plan D marginal costs and marginal benefits are

A) $72,000 and $64,000, respectively. B) $28,000 and $12,000, respectively.

C) $24,000 and $18,000, respectively. D) $16,000 and $28,000, respectively.

27)Answer the question on the basis of the following information for four highway programs of

increasing scope. All figures are in millions of dollars.

(Program) (Total Cost) (Total Benefit)

A $2 $9

B $6 $16

C $12 $21

D $20 $23

On the basis of the data, we can say that

A) Program D is the most efficient on economic grounds.

B) Program C is the most efficient on economic grounds.

C) Program B is the most efficient on economic grounds.

D) Program A is the most efficient on economic grounds.

Answer 1

13) The prominence of employer-provided health insurance in the U.S. has had the following

Solution: heightened awareness of employees about the true costs of their health care.

Explanation: In United States prominence of employer-provided health insurance in the U.S. is one major cause of the overconsumption and rapidly rising costs of health care

14) The burden of Medicaid costs is

Solution: Shared by the states and Federal government

Explanation: As per norms the Medicaid costs is shared by the states and Federal government

17) Raising the deductibles and copayments is a way of dealing with the

Solution: moral hazard problem of health insurance.

Explanation: Moral hazard refers to the additional health care that is purchased when persons become insured, thus increasing the deductibles and copayments is a way of dealing with the moral hazard problem of health insurance

24)Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay

$40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of

producing the third unit is $100, what is the minimum amount that Susie must be willing

to pay for it to be efficient for government to produce the third unit?

Solution: $35

Explanation: 100 - 40 - 25 = $35

I have answered the first 4 parts