A) suggests that government intervention is necessary for an efficient outcome. B) is generally successful in assigning property rights for public goods. C) points out that high transaction costs are a barrier to efficiency. D) helps explain Arrow's Impossibility Theorem. E) is an example of how Arrow's Impossibility Theorem can be implemented. A) suggests that government intervention is necessary for an efficient outcome. B) is generally successful in assigning property rights for public goods. C) points out that high transaction costs are a barrier to efficiency. D) helps explain Arrow's Impossibility Theorem. E) is an example of how Arrow's Impossibility Theorem can be implemented.

Exam 14: The Role of Government and Public Goods

In 1983, Reverend Wells founded ODAAT (One Day At A Time) as a comprehensive support center for recovering homeless addicts in Philadelphia. ODAAT is especially effective in channeling at-risk individuals to social services for HIV/AIDs testing. This is an example of a non-governmental organization (NGO) in the voluntary sector which aids government operations.

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(True/False)

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Question 1

Correct Answer:

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True

Rational ignorance means you and I can go to school each day, eat, sleep and never think twice about the health safety of the products we consume. Name as many products as you can that you use on a regular basis which you count on the federal government to certify as safe.

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Question 2

Correct Answer:

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Soap, shampoo, contact lens solution, prescription drugs, over the counter nasal spray, Tylenol and other over the counter medications; foods of all types; paints, insulations, building products.

Explain the interaction among the ideals of public welfare maximization, regulatory capture, and bureaucratic objectives in enacting policy regarding a controversial vaccine aimed at fighting a potential epidemic.

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Question 3

Correct Answer:

Verified

The reality of government legislation is that it is the result of a series of strategies and interactions among each of the parties at work in society. Consider the issue of passing legislation including emergency public vaccination with a controversial vaccine. If the ideal is public welfare maximization, then achieving as high a vaccination rate as possible is the goal, no matter how much personal choice or liberty is sacrificed. Regarding concerns about the regulatory capture, pharmaceutical companies do stand to make a profit from the vaccine, and they will lobby hard for a universal enforcement of the vaccination. If bureaucratic ideas dominate, the focus of debate will rest on which agency distributes and administers the vaccine. In the end, policy makers will have to strike a balance among the needs and wants of each group.

Provision of health statistics by the National Center for Health Statistics is an example of the government performing its role as provider of a public good.

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Question 4

The Coase Theorem

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Question 5

Board certification by the American College of Surgeons in a particular surgery is one way surgeons can use to privatize the public good of surgical knowledge and extract monopoly rents from it.

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Question 6

Direct government funding of healthcare expenditures was more than $1.4 trillion in 2012. Including the subsidy for preferential tax treatment, this represents more than half of all health care spending in the U.S. In recent years, this funding has been increasing. This increased spending comes at a very low, almost negligible, opportunity cost in terms of spending on public health care programs and medical research & development, as these entries in the government budget have their own separate funding.

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Question 7

The roles of government include all of the following tasks except

(Multiple Choice)

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Question 8

The market for health insurance has been experiencing market failure due to economies of scale in insurance provision which results in a natural monopoly.

(True/False)

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Question 9

The role of the government as a provider of health care is

(Multiple Choice)

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Question 10

Which three properties characterize public goods? Public goods are

(Multiple Choice)

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Question 11

If a congressional leader passes a bill favorable to a particular pharmaceutical firm, then resigns to take a consultant position with the same firm, this may be an example of

(Multiple Choice)

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Question 12

To classify a good as either private or public, it is sufficient to look into the following two basic characteristics of public goods: whether the good is nonexclusive and whether the good is inexhaustible. Thus, there is always a clear distinction between private and public goods.

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Question 13

It is possible that pesticides sprayed on coffee bean crops poses unknown threats to the future health of those who consume it. It is also possible that pesticides sprayed on mountain crops runs downward to collect and affect other crops in countries such as Nicaragua, where government testing and regulation standards differs from U.S. The Fair Trade movement, which includes coffee, chocolate and other products, is aimed at making consumers aware of the poor living conditions of workers in countries like Nicaragua. It partners with local growers to insure a wage a bit higher than the local wage to produce a quality of coffee beans that meets the definition of organic. How is the Fair Trade movement seeking to overcome rational ignorance of U.S. consumers? What incentive to U.S. consumers have besides a sense of environmental responsibility to pay a higher price than for other coffees?

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Question 14

Very uneven distribution of goods in a market is one of the possible causes of market failure.

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Question 15

Almost half of all injuries to U.S. soldiers in Iraq have come from surviving attacks with IEDs, Improvised Explosive Devices. Many of the injuries cause traumatic brain injuries and loss of limbs. What positive externality might possibly come from such fatalities?

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Question 16

"Lines of patients outside the methadone clinic each morning create a negative externality to people waiting for the bus to go to work and school." Criticize or defend this statement.

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Question 17

Consider Al. Al, is an alcoholic, spent 15 years in his addiction drinking heavily. For 10 years now, he's been a recovering alcoholic. He attends support meetings and contributes to the care of newly sober alcoholics and addicts. He has turned his life around. Al recently found out he has a rare liver disease. Since liver transplant demand far exceeds the available supply of livers for transplant, a rationing body ranks those waiting for a transplant in a sort of lottery system. Should the ranking committee allow Al on the list? Would your answer change if Al were still a drinking alcoholic? What is different about your reasoning?

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Question 18

What are the most difficult aspects of the Coase Theorem in solving a problem like spread of a dangerous flu by those who are not vaccinated against it? Assume the vaccine is 99.9% effective.

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Question 19

Which of the following statements is true?

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Question 20

Showing 1 - 20 of 30

Rational ignorance means you and I can go to school each day, eat, sleep and never think twice about the health safety of the products we consume. Name as many products as you can that you use on a regular basis which you count on the federal government to certify as safe.

Explain the interaction among the ideals of public welfare maximization, regulatory capture, and bureaucratic objectives in enacting policy regarding a controversial vaccine aimed at fighting a potential epidemic.

Provision of health statistics by the National Center for Health Statistics is an example of the government performing its role as provider of a public good.

The Coase Theorem

Board certification by the American College of Surgeons in a particular surgery is one way surgeons can use to privatize the public good of surgical knowledge and extract monopoly rents from it.

The roles of government include all of the following tasks except

The market for health insurance has been experiencing market failure due to economies of scale in insurance provision which results in a natural monopoly.

The role of the government as a provider of health care is

Which three properties characterize public goods? Public goods are

If a congressional leader passes a bill favorable to a particular pharmaceutical firm, then resigns to take a consultant position with the same firm, this may be an example of

To classify a good as either private or public, it is sufficient to look into the following two basic characteristics of public goods: whether the good is nonexclusive and whether the good is inexhaustible. Thus, there is always a clear distinction between private and public goods.

Very uneven distribution of goods in a market is one of the possible causes of market failure.

Almost half of all injuries to U.S. soldiers in Iraq have come from surviving attacks with IEDs, Improvised Explosive Devices. Many of the injuries cause traumatic brain injuries and loss of limbs. What positive externality might possibly come from such fatalities?

"Lines of patients outside the methadone clinic each morning create a negative externality to people waiting for the bus to go to work and school." Criticize or defend this statement.

What are the most difficult aspects of the Coase Theorem in solving a problem like spread of a dangerous flu by those who are not vaccinated against it? Assume the vaccine is 99.9% effective.

Which of the following statements is true?

Choices: Money, Medicine, and Health

Demand and Supply

Cost-Benefit and Cost-Effectiveness Analysis

Health Insurance: Financing Medical Care

Insurance Contracts and Managed Care

Physicians

Medical Education, Organization, and Business Practices

Hospitals

Management and Regulations of Hospital Costs

Long-Term Care

Pharmaceuticals

Financing and Ownership of Health Care Providers

Macroeconomics and Medical Care

History, Demography, and the Growth of Modern Medicine

International Comparisons of Health and Health Expenditures

Economic Evaluation of Health Policy: The Patient Protection and Affordable Care Act of 2010

Value for Money in the Future of Health Care

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