Exam 5: The Economics of Health Care

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

The provision of the Patient Protection and Affordable Care Act (ACA)which states that every firm with more than 200 full-time employees must offer health insurance to its employees and must automatically enroll them in the plan is the ________ provision.

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

In the United States in 2016,of those companies employing more than 200 workers that offer health care to those workers,________ of employees accept the coverage.

Two key consequences of asymmetric information are adverse selection and moral hazard.Define each concept,provide one example of each,and explain how the two concepts differ.

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

An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy.What is the term used to describe the situation above?

Over time,people in the United States and other high-income countries have,on average,become taller,which is an indication that their nutritional status has improved.

By the year 2017,health care spending on Medicare,Medicaid,and other U.S.government programs as a percentage of GDP had reached a level of

In the United States,health care spending on people ________ is six times greater than on people ________.

Health insurance typically pays for most preventive care procedures in all of the following countries except

The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as adverse selection.

One reason why adverse selection problems arise in health insurance markets is that

The health care system in ________ is referred to as a universal health insurance system,under which every resident is required to enroll in either a private or the government-provided health insurance program.

The rising cost of malpractice insurance is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

The provision of the Patient Protection and Affordable Care Act (ACA)which states that insurance companies are required to participate in a high-risk pool that will insure individuals with pre-existing medical conditions who have been unable to buy health insurance for at least six months is the ________ provision.

What is the term that describes a situation in which one party to an economic transaction has less information than the other party?

In the classic 1944 movie Double Indemnity,Barbara Stanwyck plays Phyllis Dietrichson,a woman who has devised a scheme with insurance agent Walter Neff,played by Fred MacMurray,to trick her husband into signing a life insurance policy and then kill him to collect the proceeds of the policy.In this scheme to murder her husband,Phyllis and her partner Walter took advantage of the husband when getting him to sign the life insurance policy,a situation which describes

How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?

As a percentage of GDP,health care spending on Medicare and Medicaid is expected to double over the next 40 years unless health care costs begin to grow at a slower rate.