Question 1

All American citizens are entitled to receive Social Security and Medicare benefits when they retirE.

Accepted Answer

A) True 
 B)False

Question 2

The cost of living adjustment (COLA)employed by Social Security is based on the

Accepted Answer

A) Current level of GDP 
B) Local rate of inflation 
C) Consumer Price Index 
D) Producer Price Index 
E) Annual poverty threshold 
A) Current level of GDP 
B) Local rate of inflation 
C) Consumer Price Index 
D) Producer Price Index 
E) Annual poverty threshold

Question 3

Social Security and Medicare are financed through a flat tax on wages paid up to a predetermined limit.

Accepted Answer

A) True 
 B)False

Question 4

The Following Questions Refer to the graph below.  
-If a third party guarantees a maximum patient price of $25,how much must the third party pay per office visit?

Accepted Answer

A) $0 
B) $25 
C) $50 
D) $75 
E) More than $75 
A) $0 
B) $25 
C) $50 
D) $75 
E) More than $75

Question 5

The payment and delivery of health care service under a managed care system is based on

Accepted Answer

A) A fee-for-service market principle 
B) A prearranged schedule of fixed prices 
C) The ability to pay principle 
D) Price negotiation between the consumer and provider 
E) None of the above 
A) A fee-for-service market principle 
B) A prearranged schedule of fixed prices 
C) The ability to pay principle 
D) Price negotiation between the consumer and provider 
E) None of the above

Question 6

The Following Questions Refer to the graph below.  
-If medical care is provided free of charge,what quantity will be demanded?

Accepted Answer

A) 0 
B) 2,000 
C) 2,800 
D) 4,000 
E) An infinite amount 
A) 0 
B) 2,000 
C) 2,800 
D) 4,000 
E) An infinite amount

Question 7

Managed care leads to higher costs of providing health care services.

Accepted Answer

A) True 
 B)False

Question 8

The Following Questions Refer to the graph below.  
-With a market allocation of medical services,equilibrium quantity will be

Accepted Answer

A) 0 
B) 50 
C) 2,000 
D) 2,800 
E) 4,000 
A) 0 
B) 50 
C) 2,000 
D) 2,800 
E) 4,000

Question 9

Today,in the aggregate,Social Security accounts for over 35% of senior citizens' incomE.

Accepted Answer

A) True 
 B)False

Question 10

How many Americans receive a monthly check from the Social Security Administration?

Accepted Answer

A) Fewer than 10 million 
B) More than 50 million 
C) About 27 million 
D) Roughly 38 million 
E) More than 100 million 
A) Fewer than 10 million 
B) More than 50 million 
C) About 27 million 
D) Roughly 38 million 
E) More than 100 million

Question 11

If people choose to work fewer hours because the Social Security tax reduces their real wage,their behavior is dominated by the

Accepted Answer

A) Substitution effect 
B) Bequest effect 
C) Income effect 
D) Wealth effect 
E) Real wage effect 
A) Substitution effect 
B) Bequest effect 
C) Income effect 
D) Wealth effect 
E) Real wage effect

Question 12

Part A of the Medicare program (Hospital Insurance)is financed primarily by

Accepted Answer

A) A monthly premium 
B) A 2.9% tax levied on wages and salaries 
C) An allocation from general tax revenues 
D) User fees paid by patients 
E) Insurance deductibles 
A) A monthly premium 
B) A 2.9% tax levied on wages and salaries 
C) An allocation from general tax revenues 
D) User fees paid by patients 
E) Insurance deductibles

Question 13

The Medicare program

Accepted Answer

A) Was established as a socialistic takeover of health care providers 
B) Has reduced the demand for health care services 
C) Affects persons 65 and older,regardless of income 
D) Enrolls all poor people regardless of age 
E) Does none of the above 
A) Was established as a socialistic takeover of health care providers 
B) Has reduced the demand for health care services 
C) Affects persons 65 and older,regardless of income 
D) Enrolls all poor people regardless of age 
E) Does none of the above

Question 14

What percent of the average health care dollar spent in the United States comes directly from the consumer?

Accepted Answer

A) 100 
B) 83 
C) 50 
D) 34 
E) 12 
A) 100 
B) 83 
C) 50 
D) 34 
E) 12

Question 15

How many elderly households receive Social Security benefits?

Accepted Answer

A) More than 90% 
B) Less than 50% 
C) About 75% 
D) Only about 15% 
E) None of the above 
A) More than 90% 
B) Less than 50% 
C) About 75% 
D) Only about 15% 
E) None of the above

Question 16

The effect of Social Security on personal savings is important because

Accepted Answer

A) The level of savings determines the pool of investment funds 
B) Savings are necessary to finance the Social Security Trust Fund 
C) Personal savings are negatively related to economic growth 
D) Savings are a major source of income for all elderly households 
E) The level of savings 
A) The level of savings determines the pool of investment funds 
B) Savings are necessary to finance the Social Security Trust Fund 
C) Personal savings are negatively related to economic growth 
D) Savings are a major source of income for all elderly households 
E) The level of savings

Question 17

Part C of the Medicare program (Medicare + Choice)

Accepted Answer

A) Provides health care plan choices to the beneficiaries of Medicare 
B) Restricts Medicare beneficiaries to a simple fee-for-service health care plan 
C) Provides comprehensive health insurance coverage for all poor people 
D) Is only available to disabled retirees receiving Social Security 
E) Does none of the above 
A) Provides health care plan choices to the beneficiaries of Medicare 
B) Restricts Medicare beneficiaries to a simple fee-for-service health care plan 
C) Provides comprehensive health insurance coverage for all poor people 
D) Is only available to disabled retirees receiving Social Security 
E) Does none of the above

Question 18

The income effect of Social Security taxes causes some people to work less hours.

Accepted Answer

A) True 
 B)False

Question 19

The Following Questions Refer to the graph below.  
-If a third party guarantees a maximum patient price of $25,what total price must be paid per office visit to assure the quantity of office visits demanded will be provided?

Accepted Answer

A) $0 
B) $25 
C) $50 
D) $75 
E) More than $75 
A) $0 
B) $25 
C) $50 
D) $75 
E) More than $75

Question 20

The most simple and direct way to postpone the looming Social Security financial crisis is to

Accepted Answer

A) Invest Social Security taxes in the stock market 
B) Raise Social Security taxes and/or lower benefits 
C) Privatize the Social Security Administration 
D) Eliminate the Social Security system and force everyone to buy private insurance 
E) Subsidize Social Security with general tax revenues 
A) Invest Social Security taxes in the stock market 
B) Raise Social Security taxes and/or lower benefits 
C) Privatize the Social Security Administration 
D) Eliminate the Social Security system and force everyone to buy private insurance 
E) Subsidize Social Security with general tax revenues

All American citizens are entitled to receive Social Security and Medicare benefits when they retirE.

The cost of living adjustment (COLA)employed by Social Security is based on the

Social Security and Medicare are financed through a flat tax on wages paid up to a predetermined limit.

The Following Questions Refer to the graph below. -If a third party guarantees a maximum patient price of $25,how much must the third party pay per office visit?

The payment and delivery of health care service under a managed care system is based on

The Following Questions Refer to the graph below. -If medical care is provided free of charge,what quantity will be demanded?

Managed care leads to higher costs of providing health care services.

The Following Questions Refer to the graph below. -With a market allocation of medical services,equilibrium quantity will be

Today,in the aggregate,Social Security accounts for over 35% of senior citizens' incomE.

How many Americans receive a monthly check from the Social Security Administration?

If people choose to work fewer hours because the Social Security tax reduces their real wage,their behavior is dominated by the

Part A of the Medicare program (Hospital Insurance)is financed primarily by

The Medicare program

What percent of the average health care dollar spent in the United States comes directly from the consumer?

How many elderly households receive Social Security benefits?

The effect of Social Security on personal savings is important because

Part C of the Medicare program (Medicare + Choice)

The income effect of Social Security taxes causes some people to work less hours.

The Following Questions Refer to the graph below. -If a third party guarantees a maximum patient price of $25,what total price must be paid per office visit to assure the quantity of office visits demanded will be provided?

The most simple and direct way to postpone the looming Social Security financial crisis is to

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Exam 15: Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

All American citizens are entitled to receive Social Security and Medicare benefits when they retirE.

The cost of living adjustment (COLA)employed by Social Security is based on the

Social Security and Medicare are financed through a flat tax on wages paid up to a predetermined limit.

The Following Questions Refer to the graph below. -If a third party guarantees a maximum patient price of $25,how much must the third party pay per office visit?

The payment and delivery of health care service under a managed care system is based on

The Following Questions Refer to the graph below. -If medical care is provided free of charge,what quantity will be demanded?

Managed care leads to higher costs of providing health care services.

The Following Questions Refer to the graph below. -With a market allocation of medical services,equilibrium quantity will be

Today,in the aggregate,Social Security accounts for over 35% of senior citizens' incomE.

How many Americans receive a monthly check from the Social Security Administration?

If people choose to work fewer hours because the Social Security tax reduces their real wage,their behavior is dominated by the

Part A of the Medicare program (Hospital Insurance)is financed primarily by

The Medicare program

What percent of the average health care dollar spent in the United States comes directly from the consumer?

How many elderly households receive Social Security benefits?

The effect of Social Security on personal savings is important because

Part C of the Medicare program (Medicare + Choice)

The income effect of Social Security taxes causes some people to work less hours.

The Following Questions Refer to the graph below. -If a third party guarantees a maximum patient price of $25,what total price must be paid per office visit to assure the quantity of office visits demanded will be provided?

The most simple and direct way to postpone the looming Social Security financial crisis is to

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

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