Exam 5: The Economics of Health Care

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

In the United States in 2009,the percentage of people without some form of private health insurance was about

Because of asymmetric information,most used cars that are offered for sale will be sold for prices that are greater than their true value.Because of this fact,the used car market falls victim to

The difference between adverse selection and moral hazard is that

Explain why is it difficult for people who are seriously ill to buy health insurance.

A doctor pursuing the interests of his patients rather than his own interests is an example of the principal-agent problem.

Adverse selection in the market for health insurance arises because

Insurance companies use deductibles and coinsurance to reduce moral hazard.

Which of the following Nobel laureates became known for the study of asymmetric information?

In most circumstances,employees pay taxes on the value of health insurance their employers provide them.

________ tended to increase spending on health care in the United States.

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 $6,000 for a good used car but only $1,000 for a lemon.Sellers of good used cars value their cars at $5,000 each and sellers of lemons value their cars at $800 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?

Adverse selection refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.

In what ways do economists and policymakers who believe that the federal government should have a larger role in the health care system criticize the Patient Protection and Affordable Care Act (PPACA)?

Most doctors are employed by the government and most hospitals are owned by the government in

Adverse selection will occur in a market as a result of

Two consequences of asymmetric information are adverse selection and moral hazard.An important distinction between the two is

Of the following,the most to the rapid rise in health care costs in the United States can be attributed to

Substantial co-payments are typically not required as a part of the health care system in

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.