Exam 5: The Economics of Health Care

In most circumstances,employees pay taxes on the value of health insurance their employers provide them.

Most employees ________ on the value of health insurance provided by employers,and most people ________ when buying individual health insurance policies.

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

Because of the ________ of vaccinations,economic efficiency would be improved if more people were vaccinated.

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 quantity is ________ thousand vaccinations.

Doctors have ________ incentive to control their costs when consumers ________ for a visit to the doctor's office.

In 2016,infant mortality in the United States was ________ per 1,000 live births.

Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance.This problem is an example of

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,what is the amount of the deadweight loss?

In the United States since 1900,life expectancy at birth has ________ and the death rate has ________.

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

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

________ occurs when one party takes advantage of having more information than another party about the attributes of the good or service they will exchange.

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.

Consumers usually pay less than the total cost of medical treatment because

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.At the efficient equilibrium

In the 1973 movie Save the Tiger,Jack Lemmon plays Harry Stoner,the CEO of a clothing manufacturer whose business has fallen on hard times.In one of the key scenes of the movie,Stoner tries to convince his partner that they should hire someone to burn one of their buildings in order to collect on their insurance policy.Harry Stoner's actions are an example of

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 Congressional Budget Office estimates that ________ account(s)for less than 1 percent of health care costs in the United States.

Changes in the health of the average person are relatively unimportant as an indicator of changes in the standard of living.