Exam 7: The Economics of Health Care

Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as

The principal-agent problem is a problem

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

In the United States from 1981 to 2009,deaths from which of the following increased?

If a hospital knows that an insurance company will pay for most of a patient's bill,the hospital has more of an incentive to require additional medical procedures and tests,even if the patient may not require them.This is an example of

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

Suppose that in a market for used cars,there are good used cars and bad used cars (lemons).Consumers are willing to pay as much as $6,000 for a good used car but only $1,000 for a lemon.Sellers of good used cars value their cars at $5,000 each and sellers of lemons value their cars at $800 each.Buyers cannot tell if a used car is reliable or is a lemon.Based on this information,what is the likely outcome in the market for used cars?

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

Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (PPACA)?

Compared to the United States,health care spending per person in other high-income countries has been

In the United States in 2010,the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about

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

Insurance companies use deductibles and coinsurance to reduce moral hazard.

Explain why is it difficult for people who are seriously ill to buy health insurance.

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

Briefly describe changes in life expectancy,average height,and infant mortality in the United States since 1850.

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

In the United States from 1981 to 2009,deaths from ________ increased largely due to the effects of increasing obesity.

The Patient Protection and Affordable Care Act (PPACA)is scheduled ________,at which point more than 30 million additional individuals are expected to have health care coverage.