Deck 22: Contemporary Issues in the Us Economy

Question 1

The United States tends to rely more on private health insurance than other countries do.

Answer 1

True

Question 2

Artificial intelligence (AI)refers to creating and using intelligent machines that work and react like humans.

Answer 2

True

Question 3

The United States spends much more on health care per capita than other nations do but does not get better health outcomes.

Answer 3

True

Question 4

The default rate actually drops as the amount borrowed increases, that is, default rates are highest among those with the smallest student loan debts.

Question 5

Adverse selection in health insurance occurs when those who are less likely to need health care, such as younger and healthier workers, choose not to purchase it.

Question 6

Contingent workers are those who have no regular employment arrangement (such as a 40-hour week), but rather work as and where there is work to be done.

Question 7

Platform companies may charge low prices on one side not to drive rivals out of business but to expand the market on the other side.

Question 8

Facebook and Google were responsible for over 60 percent of digital advertising expenditures in 2017.

Question 9

Both Google and Facebook make their money by charging advertisers to run their ads, and the bigger an audience they have, the more they can charge.

Question 10

A deductible is a fixed amount that the insured person must pay before their insurance kicks in.

Question 11

If you have a $50 co-pay, you must pay ____ for each doctor's visit.

A)$50
B)$35
C)$25
D)None of the above is correct.

Question 12

Co-pay is a fixed amount that the insured person must pay each time he or she uses health care.

Question 13

If you have a policy with 20 percent co-insurance, your insurer will pay ___ percent of your bill, leaving ___ percent for you.

A)80; 20
B)70; 30
C)75; 25
D)None of the above is correct.

Question 14

Social Security is an important example of a portable benefit that follows the worker, no matter who their employer is.

Question 15

When positive network effects are present, platform markets exhibit a particular kind of economy of scale.

Question 16

Network effects occur when the value of a platform to its users changes as the number of users rises.

Question 17

A pricing strategy below cost is often claimed to be ________ , done to drive rivals out of business so that the firm can subsequently raise its price back up to the monopoly level.

A)predatory
B)fair
C)ethical
D)None of the above is correct.

Question 18

In the health insurance context, moral hazard occurs when patients make less healthy choices and doctors provide treatments that have little medical benefit because they know the costs will be covered by insurance.

Question 19

A trade war is said to occur when each country takes steps to make it harder for other countries to sell into its markets.

Question 20

Non-tariff barriers are tools that countries use to restrict trade such as regulatory or legal barriers or slow processing of goods at borders.

Question 21

______________ refers to the fraction of your medical bill that you, rather than your insurer, must cover.

A)Co-insurance
B)Co-pay
C)Deductible
D)None of the above is correct.

Question 22

______ has taken on some negative political connotations because more international trade and more immigration inevitably creates some losers as well as many winners.

A)Globalization
B)Protectionism
C)Competition
D)None of the above is correct.

Question 23

If you have, say, a $2,000 deductible, your insurance will only start paying after you have spent ____ of your own money on health care.

A)$2,000
B)$1,000
C)$500
D)None of the above is correct.