Exam 5: The Economics of Health Care

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

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 market equilibrium price is

About ________ of pharmaceutical patents are issued to U.S.firms.

In which of the following countries does health insurance not pay for most preventive care procedures?

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

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

Figure 5-3 Figure 5-3 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 5-3.With insurance and a third-party payer system,the equilibrium quantity of medical services is

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

Economists who support market-based reforms for health care believe that increased competition among providers of health care would

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

The difference between adverse selection and moral hazard is that

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

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

Between 1981 and 2015,deaths from kidney disease increased largely due to the effects of

Article Summary 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 ________ the full cost of medical treatment.This would result in the market equilibrium price and quantity of medical services being ________ than the efficient equilibrium price and quantity.

Of the following high-income countries,which has the highest male life expectancy at age 65?

In the principal-agent relationship,the principal is

In the United States,health care spending as a percentage of GDP has declined since 1965.

Pricing insurance policies is made difficult because buyers have more information than sellers.This difficulty is an example of

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