Exam 5: The Economics of Health Care

Of the following high-income countries,which has the highest number of CT scanners per 1 million population?

Of the following U.S.presidents,which was the first to propose a national health insurance program to Congress?

Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)?

In the United States in 2016,the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office

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.Marginal social benefit is represented by which curve?

In the United States,private health insurance companies

Which of the following is not an advantage of risk pooling?

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

Which of the following factors help to explain the sustained increases in health care spending in the United States,and which do not? a.the additional paperwork,duplication,and waste generated in the U.S.health care system compared to systems in other countries b.the increasing costs of malpractice insurance and malpractice lawsuit settlements c.the number of uninsured patients receiving hospital treatment that could have been performed at a lower cost in doctors' offices d.the slow growth in labor productivity in health care compared to that in the economy as a whole e.the aging population f.increases in the cost of providing health care

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

Compared to other high-income countries,health care spending per person in the United States has been

Automobile insurance companies have a problem with people who buy insurance and then drive recklessly or take less care to avoid losses after being insured.In other words,the automobile insurance market is subject to

In 2018,a tax is scheduled to be imposed on employer-provided health insurance plans known as 'Cadillac plans.'

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 price is

In markets with asymmetric information

Basic supply and demand analysis indicates that having firms rather than the government provide health insurance to workers

In the United States,the bulk of health care spending is paid by health insurance companies.Such a system is also called a third-party payer system where consumers of health care pay a nominal fee and the rest are paid by the health insurance provider.Why might such a system lead to an inefficient outcome?

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

An Organisation for Economic Co-operation and Development (OECD) report states that administration costs for health care in the United States are the highest in the developed world, accounting for over 8 percent of spending in the health care sector, compared to a global average of about 3 percent. According to the report, expensive surgeries, high pharmaceutical costs, and corrupt practices increased global health care costs, and poor coordination between health care providers, duplication of tasks, and excessive time spent on paperwork all contributed to higher administrative costs. The report also noted that administrative costs are generally lower under government-managed health care systems than with private insurance, but governments could still significantly cut spending and improve patients' health. Source: Alanna Petroff, "U.S. health care admin costs are double the average," money.cnn.com, January 11 2017. -Refer to the Article Summary.The article discusses the high administrative costs of health care in the United States.Even if private insurance companies were more efficient and brought administrative costs down,consumers would still pay less than the full cost of medical treatment.This would result in the market equilibrium price of medical services being ________ than the efficient equilibrium price,and the market equilibrium quantity of medical services being ________ than the efficient equilibrium quantity.