Question: Each year, the Medicare trustees issue a report on the health of the program. According to the 2016 report, which of the following statements is true?
Answer Options:
a. The Medicare Trust Fund is projected to remain solvent indefinitely without any changes.
b. Medicare spending is decreasing and will be less than 5% of GDP in the next decade.
c. The net present value of future Medicare obligations that are currently unfunded will require Congress to appropriate funds beyond current law approaching $60 trillion dollars, over 300 percent of current gross domestic product.
d. The Medicare Trustees’ report does not provide any information on the financial status of the program.
Answer: c. The net present value of future Medicare obligations that are currently unfunded will require Congress to appropriate funds beyond current law approaching $60 trillion dollars, over 300 percent of current gross domestic product.
Question: Which of the following characteristics is true of the pharmaceutical industry?
Answer Options:
a. Low barriers to entry due to minimal regulatory requirements.
b. Products are generally generic and have little brand differentiation.
c. Exclusive rights to market and sell patented products.
d. Limited research and development expenditures compared to other industries.
Answer: c. Exclusive rights to market and sell patented products.
Question: Which of the following statements is true about cost shifting in hospitals?
Answer Options:
a. Cost shifting does not occur in modern healthcare systems.
b. The ability to cost shift depends on a hospital’s payer mix.
c. Cost shifting always results in decreased healthcare costs for all patients.
d. Hospitals uniformly charge the same prices regardless of payer.
Answer: b. The ability to cost shift depends on a hospital’s payer mix.
Question: Input demand is called derived demand because:
Answer Options:
a. Demand for an input is derived from the demand for the product or service it produces.
b. Input demand is derived from the availability of substitutes.
c. Demand for inputs is derived from the input’s own market price.
d. Input demand is derived from government subsidies.
Answer: a. Demand for an input is derived from the demand for the product or service it produces.
Question: Approximately what percentage of Medicare enrollees received inpatient hospital care in 2018?
Answer Options:
a. 10 percent
b. 22 percent
c. 50 percent
d. 75 percent
Answer: b. 22 percent
Question: Which of the following services is covered under Part B of Medicare?
Answer Options:
a. Inpatient hospital stays from days 2 through 60
b. Physician services and outpatient care
c. Prescription drug coverage
d. Long-term custodial care
Answer: b. Physician services and outpatient care