Exam 5: The Economics of Health Care

In a market with positive externalities,the market equilibrium price will be greater than the efficient equilibrium price.

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,they ________ of health care services than they would if they paid a price that better represented the true cost of providing the service.

In the United States,the bulk of health care spending is paid by health insurance companies.Such a system is also called a ________ where consumers of health care pay a nominal fee and the rest is paid by the health insurance provider.

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.

Based on its current rate of growth,health care spending as a percentage of GDP through Medicare,Medicaid,and other U.S.government programs is expected to

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 quantity of medical services is

In which of the following countries are substantial co-payments typically required as a part of the health care system?

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

In the United States from 1981 to 2015,deaths from all of the following declined substantially except

Which of the following is a part of the "employer mandate" provision of the Patient Protection and Affordable Care Act (ACA)?

In a market with positive externalities,the market equilibrium quantity will be less than the efficient equilibrium quantity.

In 2017,the average life expectancy at birth in the United Kingdom and other high-income countries was around ________ years.

Suppose consumers pay less than the true cost of medical services because a third party,such as an insurance company,pays most of the bill.Draw a graph showing the supply and demand for medical services with and without a third-party payer.Identify the market equilibrium without insurance,the market equilibrium with insurance,and the area representing the deadweight loss.Be sure to label the efficient and the market prices and quantities.

A key difficulty facing insurance companies is that people know more about their health than do insurance companies.What is this phenomenon called?

Economists John Cogan,Glenn Hubbard,and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide are known as

When consumers pay only a fraction of the true cost of medical services,their demand increases.The marginal cost of producing these extra services

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.At the market equilibrium,the deadweight loss is equal to

By 2017,spending on federal health care programs such as Medicare and Medicaid had grown to 7 percent of GDP.

Due to the trend in U.S.out-of-pocket health care spending over the past 50 years,the fraction of the true cost of health care being paid directly by consumers