Question 1

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

Question 2

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

Question 3

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

Question 4

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

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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 13

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

Question 14

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

Question 15

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

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

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

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

Question 20

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

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

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

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

Part C of the Medicare program (Medicare + Choice)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The effect of Social Security on personal savings is important because

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How many elderly households receive Social Security benefits?

Correct AnswerverifiedShow Answer

The Medicare program

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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