Test Bank to accompany Rosen’s Public Finance, Seventh Edition Chapter 10 60 CHAPTER 10 – Social Insu rance II: Health Care Multiple-Choice Questions 1
When the average buyer of an insurance policy is likely to have higher risk than others in his class, this is known as a) adverse selection
b) moral hazard
c) asymmetric information
d) a HMO
e) none of the above
There are two forms of health care provided by the government: _________ is provided for the poor, and _________ is provided for the elderly
a) HMO; Medicare b) PMI; HMO c) Medicaid; Medicare d) Medicare; Medicaid e) SSI; Medicare 3
In the year 2000, what was the percentage of GDP that was expended, in total, on health care
132% b) 12% c) 13
2% d) 19% e) 22% 4
__________ account(s) for the largest portion of public