Exam 7: The Economics of Health Care

For a given level of compensation, the ________ a firm pays for your health insurance, the ________ it will pay you in wages.

In which of the following countries does health insurance not pay for most preventive care procedures?

One of the provisions of the Patient Protection and Affordable Care Act (ACA) is that in 2017, someone without health insurance was fined $695 or 2.5 percent of their income, whichever amount was higher. A growing number of younger and healthier people chose to pay the fine and not purchase health insurance, which resulted in

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 quantity is ________ thousand vaccinations.

Two key consequences of asymmetric information are adverse selection and moral hazard. Define each concept, provide one example of each, and explain how the two concepts differ.

Identify the 6 main provisions of the Patient Protection and Affordable Care Act (ACA).

Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection.

Lower deductibles for employer-provided health care will tend to shift the ________ curve for medical services to the ________.

On average, people in high-income countries ________ than people in low-income countries.

Explain why the death rates due to kidney disease and diabetes have slightly increased in the United States since 1981.

One consequence of adverse selection in the market for used cars is that most used cars sold will be lemons.

The largest government-run health care system in the world, with 1.4 million employees, is the National Health Service (NHS) in the United Kingdom. The NHS receives its funding primarily from

A majority of people in the United States have private health insurance.

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

Although most large firms in the United States offer their employees health insurance, fewer than two-thirds accept it.

Pricing insurance policies is made difficult because buyers have more information than sellers. This difficulty is an example of

In 2017, health care's share of gross domestic product in the United States

Of the following high-income countries, which has the lowest number of MRI units per 1 million population?

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

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will generate