Exam 5: The Economics of Health Care

Figure 5-6 Figure 5-6 represents the supply and demand for medical services with and without a third-party payer. -Refer to Figure 5-6.Answer the following questions: 1.What would be the equilibrium price and quantity if consumers had to pay the full price of medical services? 2.With insurance acting as a third-party payer,what price will consumers pay for medical service? 3.With insurance acting as a third-party payer,what price will doctors receive for medical service? 4.With insurance acting as a third-party payer,what will be the equilibrium quantity of medical services? 5.With insurance acting as a third-party payer,what will be the value of the deadweight loss?

In most circumstances,employees do not pay taxes on the value of health insurance their employers provide them.

Since 1981,deaths from cardiovascular diseases have decreased in the United States.

Under the Patient Protection and Affordable Care Act (ACA),every company with more than 200 employees must offer health insurance to its employees and must automatically enroll them in the plan.

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 private benefit is represented by which curve?

Lower deductibles for employer-provided health care will tend to shift the ________ curve for medical services to the ________.

The provision of the Patient Protection and Affordable Care Act (ACA)which states that,with limited exceptions,every resident of the United States must have health insurance that meets certain basic requirements is the ________ provision.

Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

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

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.If consumers paid the full price of medical services,the price they would pay is

Economists who support market-based reforms for health care believe that increased competition among providers of health care would ________ costs and ________ economic efficiency.

Due to adverse selection,very few lemons will be sold in the market for used cars.

In the United States from 1981 to 2015,deaths from ________ increased largely due to the effects of increasing obesity.

In the United States in 2016,over 90 percent of people without health insurance were below the age of 35.

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is

What is asymmetric information?

In ________,health care spending per person is significantly higher than the average for most other countries,even taking into account the effects of higher income per person.

If a buyer in an economic transaction has more information than the seller,the buyer benefits at the expense of the seller.This phenomenon is due to

Between 1981 and 2015,deaths from cancer have increased in the United States.

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