Exam 5: The Economics of Health Care

One effect of adverse selection in a market is that the equilibrium quantity of the product may be smaller than it would have been if there were no information problems.

The Pre-Existing Condition Insurance Plan is a federally administered part of the Affordable Care Act,and is designed for people with pre-existing medical conditions to obtain insurance.By offering health insurance to all U.S.citizens with pre-existing medical conditions,the Pre-Existing Condition Insurance Plan eliminates ________ for both the insurer and the insured,and eliminates ________ for the issuer of the insurance policy.

Suppose you see a 2008 Ford Mustang GT advertised in the local newspaper for $15,000.If you knew the car was reliable,you would be willing to pay $17,000 for it.If you knew the car was unreliable,you would only be willing to pay $12,000 for it.Under what circumstances should you buy the car?

The overall mortality rate in the United States has remained fairly constant for the past 30 years.

A contract under which a buyer agrees to make payments in exchange for the provider agreeing to pay some or all of the buyer's medical bills is referred to as

In the principal-agent relationship,the agent is

In the United States in 2012,the percentage of people with private health insurance was about

Briefly describe changes in life expectancy,average height,and infant mortality in the United States since 1850.

In the United States in 2012,the percentage of people who received health insurance through a government program was about

In the United States,out-of-pocket spending on health care as a percentage of all spending on health care has ________ since 1960.

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.With insurance and a third-party payer system,what price do consumers pay for medical services?

The Japanese system of universal health insurance requires no co-payments from residents for health services.

Of the following high-income countries,which has the lowest mortality ratio for cancer?

The Pre-Existing Condition Insurance Plan is a federally administered part of the Affordable Care Act,and is designed for people with pre-existing medical conditions to obtain insurance.By offering health insurance to all U.S.citizens with pre-existing medical conditions,the Pre-Existing Condition Insurance Plan

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 quantity is ________ thousand vaccinations.

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.The efficient quantity of medical services is

Adverse selection occurs in the market for used cars because used car buyers

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 private benefit is represented by which curve?

Vaccinations tend to result in a negative externality.

In the United States in 2012,the percentage of people that directly purchased an individual or family health insurance policy from an insurance company was about