Exam 5: The Economics of Health Care

Since 1981,deaths from cardiovascular diseases have decreased in the United States.

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.Marginal social benefit is represented by which curve?

One consequence of adverse selection in the market for used cars is that most used cars sold will be lemons.

What is adverse selection?

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

Under current U.S.tax laws individuals do not pay taxes on health insurance benefits they receive from their employers.

________ account(s)for between 1 and 4 percent of health care costs in the United States.

Most employees ________ on the value of health insurance provided by employers,and most people ________ when buying individual health insurance policies.

Due to adverse selection,very few lemons will be sold in the market for used cars.

Suppose that in a market for used cars,there are good used cars and bad used cars (lemons).Consumers are willing to pay as much as $9,000 for a good used car but only $3,000 for a lemon.Sellers of good used cars value their cars at $7,500 each and sellers of lemons value their cars at $1,500 each.Buyers cannot tell if a used car is reliable or is a lemon.Based on this information,what is the likely outcome in the market for used cars?

Under the Patient Protection and Affordable Care Act (ACA),every company with more than 200 employees must offer health insurance to its employees and must automatically enroll them in the plan.

In the United States,health care spending as a percentage of GDP has declined since 1965.

Health insurance plans which typically reimburse doctors mainly by paying ________ are known as health maintenance organizations.

In markets with asymmetric information,

Of the following,which has most likely contributed the most to the rapid rise in health care costs in the United States?

The provision of the Patient Protection and Affordable Care Act (ACA)Insurance companies are required to participate in a high-risk pool that will insure individuals with pre-existing medical conditions who have been unable to buy health insurance for at least six months is the ________ provision.

In the United States in 2011,over 50 percent of people without health insurance were below the age of 34.

What is the term that describes a situation in which one party to an economic transaction has less information than the other party?

The Congressional Budget Office estimates that ________ of the increase in federal spending on Medicare and Medicaid over the next 75 years will be due to increases in the cost of providing health care.

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 efficient equilibrium quantity is ________ thousand vaccinations.