Exam 5: The Economics of Health Care

Under the Patient Protection and Affordable Care Act (ACA),individuals who do not have health insurance are subject to a fine.

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

Uninsured patients receiving treatments at hospital emergency rooms that could have been provided less expensively at doctor's offices account for ________ of health care costs in the United States.

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

Between 1981 and 2015,the overall mortality rate in the United States

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

Under current tax laws,individuals do not pay taxes on health insurance benefits they receive from their employers.As a result

Of the following high-income countries,which has the lowest infant mortality rate?

In the United States in 2016,the percentage of firms that employed between 3 and 199 workers and offered health insurance as a fringe benefit to the workers 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.

A goal of ________ is to give patients an incentive to pay more attention to the prices of medical services.This would tend to increase economic efficiency by decreasing the costs of medical services

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.

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 price is

Typically,the higher the level of income per person in a country,the higher the level of spending per person on health care.This relationship between income and spending indicates that health care is a

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.The efficient price of medical services is

College education tends to result in a negative externality because the recipient does not receive the full benefit of the education.

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

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?

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will generate

On average,people in the United States spend a smaller percentage of their income on health care than do people in most other countries.