Exam 5: The Economics of Health Care

Suppose a large firm allows its employees to choose whether to participate in its health insurance plan.The firm is trying to decide between two plans: Plan I has a low monthly premium but a high deductible,and Plan II has a high monthly premium but a low deductible.Under which plan is adverse selection likely to be a bigger problem?

"Cost disease" refers to the tendency for high productivity in the service sector to lead to lower costs in those industries.

Over the past 160 years in the United States,life expectancy

The health care system in ________ is referred to as a universal health insurance system,under which every resident is required to enroll in either a private or the government-provided health insurance program.

If a buyer in an economic transaction has more information than the seller,the buyer benefits at the expense of the seller.This phenomenon is due to

For many small firms,providing health insurance for their workers

In the United States in 2012,of those companies employing more than 200 workers that offer health care to those workers,about ________ percent of employees accept the coverage.

Why might a young,healthy person choose not to buy health insurance?

If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost,the quantity of medical services provided would increase.

In the United States in 2012,about two-thirds of those who were not covered by health insurance

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

The number of people receiving Medicare is expected to grow to 80 million by the year

The Patient Protection and Affordable Care Act (ACA)is scheduled to be fully implemented by 2019,at which point

The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA)will

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.The market equilibrium price is

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.If consumers paid the full price of medical services,the price they would pay is

The overall decline in death rates in the United States since 1981 was due to all of the following except

The health care system in Canada is referred to as ________,and is a system in which the government provides national health insurance to all Canadian residents.

Health insurance companies impose deductibles on policies and co-payments on claims

About ________ of research on new medicines is carried out in the United States.U.S.