HEALTH CARE ECONOMICS MIDTERM | QUESTIONS AND ANSWERS | 100% CORRECT SOLUTIONS

HEALTH CARE EC MIDTERM QUESTIONS
AND ANSWERS 100% CORRECT.

1- Which program has the highest expenditure per enrollee in the US?

Medicaid

Medicare

Employer-sponsored health insurance

Non-group health insurance - ANSWERS-medicare



1- Which statement is correct about US expenditure on health care in 2008?

One out of every six dollars spent in the U.S. was spent on health care

One out of every eight dollars spent in the U.S. was spent on health

care

One out of every four dollars spent in the U.S. was spent on health care

One out of every ten dollars spent in the U.S. was spent on health care -
ANSWERS-One out of every six dollars spent in the U.S. was spent on health
care



1- Which of the following options is incorrect about US health care?

Health care spending as a share of GDP has been steady from 2008 to 2012

The projected health care spending as a share of GDP in 2020 is lower than
the current share.

Increase in life expectancy is one of the reasons of increase in health care
costs

US is categorized as a country with high health care costs - ANSWERS-The
projected health care spending as a share of GDP in 2020 is lower than the
current share.

, 1- Demand falls by 5 percent for every 10 percent increase in price of health
care services.

How much is the own price elasticity of demand for health care?

0.5

2

-2

-0.5 - ANSWERS--0.5



1- The demand for healthcare is ................ if the own price elasticity of
demand is -0.2.

Elastic

Inelastic

Unitary elastic

None of the above - ANSWERS-Inelastic



1- US demand for health care is

Downward sloping

Sensitive to the price of health care

Inelastic

All of the above - ANSWERS-All of the above



1- What share of the healthcare spending the US government is responsible
for?

One third



One fifth

Half

Almost all the costs - ANSWERS-half