Exam 5: The Economics of Health Care

What is moral hazard?

In 2013,health care's share of gross domestic product in the United States was about

Which of the following is an example of adverse selection?

The Congressional Budget Office estimates that ________ account(s)for less than 1 percent of health care costs in the United States.

Figure 5-4 Figure 5-4 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 5-4.With insurance and a third-party payer system,the equilibrium quantity of medical services is

Article Summary Administrative overhead costs resulting from insurance companies handling reimbursement claims is in large part the reason that health care in the United States is much more expensive than in other countries. An analysis on the administration costs of health care in the United States found that roughly 30 percent of the costs of health care are administrative and that more than 25 percent of health-sector employees work in administration. Health insurance companies are often paid a fixed percentage of the claims they administer, which gives them little to no impetus to increase efficiency and keep costs down. -Refer to the Article Summary.Even if insurance companies were more efficient and brought administrative costs down,consumers would ________ the full cost of medical treatment.This would result in the market equilibrium price and quantity of medical services being ________ than the efficient equilibrium price and quantity.

By the year 2013,health care spending on Medicare,Medicaid,and other U.S.government programs as a percentage of GDP had reached a level of

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

In the United States from 1981 to 2011,deaths from diabetes increased largely due to the effects of

Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

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

Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide are known as

An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy.What is the term used to describe the situation above?

Figure 5-2 Figure 5-2 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 5-2.The efficient equilibrium price is

Which of the following is not an advantage to an insurance company of insuring a large group of people for health insurance?

Figure 5-1 Figure 5-1 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 5-1.At the market equilibrium

Of the following high-income countries,which has the highest male life expectancy at age 65?

All of the following are part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)except

A majority of people in the United States do not have private health insurance.

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