Exam 7: The Economics of Health Care

Figure 7-1 Figure 7-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 7-1. Marginal private benefit is represented by which curve?

Vaccinating people against a communicable disease such as influenza not only reduces the chances that the person vaccinated will catch the disease but also reduces the probability that an epidemic of the disease will occur. Which of the following statements is true?

In the United States from 1981 to 2015, deaths from diabetes increased largely due to the effects of

Figure 7-1 Figure 7-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 7-1. The efficient equilibrium price is

In the United States in 2016, the percentage of people with private health insurance was about

The provision of the Patient Protection and Affordable Care Act (ACA) which states that, with limited exceptions, every resident of the United States must have health insurance that meets certain basic requirements is the ________ provision.

In the United States in 2016, the percentage of people without any form of health insurance was about

Article Summary An Organisation for Economic Co-operation and Development (OECD) report states that administration costs for health care in the United States are the highest in the developed world, accounting for over 8 percent of spending in the health care sector, compared to a global average of about 3 percent. According to the report, expensive surgeries, high pharmaceutical costs, and corrupt practices increased global health care costs, and poor coordination between health care providers, duplication of tasks, and excessive time spent on paperwork all contributed to higher administrative costs. The report also noted that administrative costs are generally lower under government-managed health care systems than with private insurance, but governments could still significantly cut spending and improve patients' health. -Refer to the Article Summary. The article discusses the high administrative costs of health care in the United States. Even if private insurance companies were more efficient and brought administrative costs down, consumers would still pay less than the full cost of medical treatment. This would result in the market equilibrium price of medical services being ________ than the efficient equilibrium price, and the market equilibrium quantity of medical services being ________ than the efficient equilibrium quantity.

In a market with positive externalities, the market equilibrium price will be greater than the efficient equilibrium price.

In the United States in 2016, the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about

Between 1981 and 2015, deaths from cancer have increased in the United States.

In 1960, out-of-pocket spending on health care in the United States was

If a state requires all drivers to buy auto insurance, the problem of adverse selection is eliminated.

Figure 7-2 Figure 7-2 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 7-2. Marginal private benefit is represented by which curve?

In the United States, health care spending on people ________ is six times greater than on people ________.

Health care makes up ________ of the U.S. economy.

Better health allows people to work harder, which raises a country's total income. This indicates that in effect, better health

By the year 2017, health care spending on Medicare, Medicaid, and other U.S. government programs as a percentage of GDP had reached a level of

Of the following high-income countries, which has the lowest infant mortality rate?

Economists John Cogan, Glenn Hubbard, and Daniel Kessler have estimated that repealing the tax preference for employer-provided health insurance would