The fundamental problem associated with the U.S. health
care system is that:

Rapidly rising U.S. health care costs have:
A. reduced the ability of many Americans to afford health
care.
B. slowed the growth of real wages.
C. caused Federal and state governments to restrict spending
on nonhealth budget items.
D. done all of these.

8. The fundamental problem associated with the U.S. health
care system is that:
A. the financing of health care through insurance has resulted
in the underallocation of resources to the health care
industry.
B. frivolous malpractice suits have increased malpractice
insurance premiums for doctors.
C. at the margin the value of health care services may be less
than the value of alternative goods and services.
D. there are too many general practitioners and not enough
specialists.

9. The unemployed are disproportionately represented among
the uninsured because:
A. one must be working to qualify for Medicaid.
B. most workers obtain health insurance through their
employers.
C. most are young and in excellent health, so they choose not
to purchase health insurance.
D. a large percentage of the unemployed are heads of
single-parent families.

10. The health care market is characterized by:
A. important ethical-equity considerations.
B. asymmetric information between providers and consumers.
C. third-party payment of health care costs.
D. all of these.

11. Health care:
A. is an inferior good.
B. is a normal good.
C. is highly elastic with respect to price.
D. has a price elasticity of 1.

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