Question 1

Will a freely competitive market without philanthropy yield a socially optimal output when there are consumption externalities? Discuss your answer.

Accepted Answer

No, a freely competitive market without philanthropy will not yield a socially optimal output when there are consumption externalities because the private market only ensures that each person obtains health care in relation to his or her own valuations and associated costs. If there are consumption externalities, there may be room for increases in social valuations through the philanthropic transfer of funds.

Question 2

Social value is made up of all individuals' external values for a specific good or service.

Accepted Answer

A) True 
 B)False  False

Question 3

To achieve this type of efficient, demand must be at an appropriate level, the supply of services must be adequate, the level of quality must be appropriate, and produced at a low cost.

Accepted Answer

A)  Technical efficiency 
B)  Allocative efficiency 
C)  Social efficiency 
D)  Economic efficiency 
A)  Technical efficiency 
B)  Allocative efficiency 
C)  Social efficiency 
D)  Economic efficiency D

Question 4

List and discuss five goals of health policy.

Accepted Answer

Some of the goals of health policy inclu

Question 5

An externality occurs when a third party is affected by the two parties directly involved in a transaction or exchange but does not have a direct way of impacting the outcome of the

Accepted Answer

A) True 
 B)False

Question 6

Free ride refers to a donor gaining benefits from others' donations while giving less.

Accepted Answer

A) True 
 B)False

Question 7

Diminishing marginal value means the more of any good or service the individual has, the less successive units of the good or service will be worth to them..

Accepted Answer

A) True 
 B)False

Question 8

Marginal cost is the amount that would have to be paid to the resources to induce them not to produce something else of value to consumers.

Accepted Answer

A) True 
 B)False

Question 9

The two welfare effects of insurance are

Accepted Answer

A)  The welfare gain from shifting the risk and the welfare gain from consuming beyond the optimal point when the individual is ill 
B)  The welfare gain from shifting the risk and the welfare loss from consuming beyond the optimal point when the individual is ill 
C)  The welfare loss from shifting the risk and the welfare gain from consuming beyond the optimal point when the individual is ill 
D)  The welfare loss from shifting the risk and the welfare loss from consuming beyond the optimal point when the individual is ill 
A)  The welfare gain from shifting the risk and the welfare gain from consuming beyond the optimal point when the individual is ill 
B)  The welfare gain from shifting the risk and the welfare loss from consuming beyond the optimal point when the individual is ill 
C)  The welfare loss from shifting the risk and the welfare gain from consuming beyond the optimal point when the individual is ill 
D)  The welfare loss from shifting the risk and the welfare loss from consuming beyond the optimal point when the individual is ill

Question 10

What is necessary for moral hazard to occur and what are its implications?

Accepted Answer

For moral hazard to occur, there must be

Question 11

The three types of distributional equity are:

Accepted Answer

A)  Vertical, intergenerational, and horizontal 
B)  Vertical, social, and intergenerational 
C)  Horizontal, social, and intergenerational 
D)  Vertical, horizontal, and social 
A)  Vertical, intergenerational, and horizontal 
B)  Vertical, social, and intergenerational 
C)  Horizontal, social, and intergenerational 
D)  Vertical, horizontal, and social

Question 12

The extra-welfarist position is concerned with how health is distributed among all members of society.

Accepted Answer

A) True 
 B)False

Question 13

Allocative efficiency implies that, given production conditions and input prices, the lowest cost combination of inputs is used at any output level.

Accepted Answer

A) True 
 B)False

Question 14

If marginal cost is greater than the marginal social value, then output should be increased.

Accepted Answer

A) True 
 B)False

Will a freely competitive market without philanthropy yield a socially optimal output when there are consumption externalities? Discuss your answer.

Social value is made up of all individuals' external values for a specific good or service.

To achieve this type of efficient, demand must be at an appropriate level, the supply of services must be adequate, the level of quality must be appropriate, and produced at a low cost.

List and discuss five goals of health policy.

An externality occurs when a third party is affected by the two parties directly involved in a transaction or exchange but does not have a direct way of impacting the outcome of the

Free ride refers to a donor gaining benefits from others' donations while giving less.

Diminishing marginal value means the more of any good or service the individual has, the less successive units of the good or service will be worth to them..

Marginal cost is the amount that would have to be paid to the resources to induce them not to produce something else of value to consumers.

The two welfare effects of insurance are

What is necessary for moral hazard to occur and what are its implications?

The three types of distributional equity are:

The extra-welfarist position is concerned with how health is distributed among all members of society.

Allocative efficiency implies that, given production conditions and input prices, the lowest cost combination of inputs is used at any output level.

If marginal cost is greater than the marginal social value, then output should be increased.

Overview of Economics

Output of the Healthcare Sector

Economic Dimensions of the Healthcare System

Demand for Health and Medical Care

Healthcare Production and Costs

Behavior of Supply

Provider Payment

Competitive Markets

Market Power in Health Care

Health Insurance

The Labor Market

Economic Evaluation of Health Services

Finance Health Care

Public Health Insurance

Regulation and Antitrust Policy in Health Care

Reform of the Healthcare Market

Filters

Exam 13: Value Judgements and Economic Evaluation

Will a freely competitive market without philanthropy yield a socially optimal output when there are consumption externalities? Discuss your answer.

Social value is made up of all individuals' external values for a specific good or service.

To achieve this type of efficient, demand must be at an appropriate level, the supply of services must be adequate, the level of quality must be appropriate, and produced at a low cost.

List and discuss five goals of health policy.

An externality occurs when a third party is affected by the two parties directly involved in a transaction or exchange but does not have a direct way of impacting the outcome of the

Free ride refers to a donor gaining benefits from others' donations while giving less.

Diminishing marginal value means the more of any good or service the individual has, the less successive units of the good or service will be worth to them..

Marginal cost is the amount that would have to be paid to the resources to induce them not to produce something else of value to consumers.

The two welfare effects of insurance are

What is necessary for moral hazard to occur and what are its implications?

The three types of distributional equity are:

The extra-welfarist position is concerned with how health is distributed among all members of society.

Allocative efficiency implies that, given production conditions and input prices, the lowest cost combination of inputs is used at any output level.

If marginal cost is greater than the marginal social value, then output should be increased.

Overview of Economics

Output of the Healthcare Sector

Economic Dimensions of the Healthcare System

Demand for Health and Medical Care

Healthcare Production and Costs

Behavior of Supply

Provider Payment

Competitive Markets

Market Power in Health Care

Health Insurance

The Labor Market

Economic Evaluation of Health Services

Finance Health Care

Public Health Insurance

Regulation and Antitrust Policy in Health Care

Reform of the Healthcare Market

Filters