Exam 7: The Economics of Health Care

What is the principal-agent problem?

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. At the market equilibrium, the deadweight loss is equal to

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. At the efficient equilibrium

The overall mortality rate in the United States has remained fairly constant for the past 35 years.

A key difficulty facing insurance companies is that people know more about their health than do insurance companies. What is this phenomenon called?

The overall mortality rate in the United States has declined for the past 35 years.

Figure 7-4 Figure 7-4 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-4. The efficient price of medical services is

Economists John Cogan, Glenn Hubbard, and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services. This would tend to ________ economic efficiency by ________ the costs of medical services

Over time, people in the United States and other high-income countries have, on average, become taller, which is an indication that their nutritional status has improved.

In the United States in 2016, the percentage of firms that employed more than 200 workers and offered health insurance as a fringe benefit to the workers was about

Of the following, which has most likely contributed the most to the rapid rise in health care costs in the United States?

Of the following high-income countries, which has the highest life expectancy at birth?

In 2016, infant mortality in the United States was ________ per 1,000 live births.

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 social benefit is represented by which curve?

Suppose you see a 2006 Scion xB Sport Wagon advertised in the local newspaper for $4,500. If you knew the car was reliable, you would be willing to pay $6,000 for it. If you knew the car was unreliable, you would only be willing to pay $2,500 for it. Under what circumstances should you buy the car at the asking price?

Figure 7-3 Figure 7-3 shows the effect of a positive externality on the market for vaccinations. -Refer to Figure 7-3. On the above graph, identify the market equilibrium price and quantity, the efficient equilibrium price and quantity, and the value of the deadweight loss resulting from too few people receiving vaccinations.

What is health insurance?

In the United States from 1981 to 2015, deaths from which of the following increased?

Compared to the United States, health care spending per person in other high-income countries has been