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

In the United States in 2016, more than seventy percent of those who were not covered by health insurance

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. With insurance and a third-party payer system, what is the amount of the deadweight loss?

In the United States, health care spending per person is ________ the average for most other countries, even taking into account the effects of higher income per person.

Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)?

Replacing employment-based health care with a government-run system could reduce employers payments for their workers insurance, but the amount that they would have to pay in overall compensation

Growth in labor productivity in the economy as a whole has been ________ the growth in labor productivity in health care.

Which of the following is not an advantage of risk pooling?

The Pre-Existing Condition Insurance Plan is a federally administered part of the Affordable Care Act, and is designed for people with pre-existing medical conditions to obtain insurance. By offering health insurance to all U.S. citizens with pre-existing medical conditions, the Pre-Existing Condition Insurance Plan

One effect of adverse selection in a market is that the equilibrium quantity of the product may be smaller than it would have been if there were no asymmetric information problems.

Due to the trend in U.S. out-of-pocket health care spending over the past 50 years, the fraction of the true cost of health care being paid directly by consumers

Uninsured patients receiving treatments at hospital emergency rooms that could have been provided less expensively at doctor's offices account for ________ of health care costs in the United States.

The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to

Figure 7-5 Figure 7-5 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 7-5. If consumers paid the full price of medical services, the equilibrium quantity would be

What is moral hazard?

On average, people in the United States spend a greater percentage of their income on health care than do people in most other countries.

Consider a used car market in which half the cars are good and half are bad (lemons). A rational buyer in this market should

The rising cost of uninsured patients receiving treatment at hospital emergency rooms is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

Between 1981 and 2015, deaths from kidney disease increased largely due to the effects of

Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents.