Exam 7: The Economics of Health Care

Of the following,the most to the rapid rise in health care costs in the United States can be attributed to

A key provision of the Patient Protection and Affordable Care Act (PPACA)is the Small Business Health Options Program (SHOP).Briefly describe the SHOP provision.

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.At one point in the movie,Stoner convinces his partner to hire someone to burn one of their buildings to collect on their insurance policy.What term refers to the information problem that led the insurance company to sell a policy for this building to Stoner and his partner?

Health care is generally considered a normal good.Briefly explain what you would expect to see happen to spending on health care over time,with health care being considered as a normal good.

Briefly describe the types of health care systems in Canada,Japan,and the United Kingdom.

The overall mortality rate in the United States has declined for the past 30 years.

Suppose you see a 2008 Ford Mustang GT advertised in the local newspaper for $15,000.If you knew the car was reliable,you would be willing to pay $17,000 for it.If you knew the car was unreliable,you would only be willing to pay $12,000 for it.Under what circumstances should you buy the car?

In what ways do economists and policymakers who believe that market-based reforms are the key to improving the health care system criticize the Patient Protection and Affordable Care Act (PPACA)?

In ________,health care spending per person based on income per person is significantly higher than the average for most other countries.

The health care system in Canada is referred to as ________,and is a system in which the government provides national health insurance to all Canadian residents.

How do adverse selection and moral hazard affect the market for insurance?

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

A goal of ________ is to give patients an incentive to pay more attention to the prices of medical services.This would tend to increase economic efficiency by decreasing the costs of medical services

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,they ________ of health care services than they would if they paid a price that better represented the true cost of providing the service.

By the year 2010,health care spending on Medicare,Medicaid,and other U.S.government programs as a percentage of GDP had reached a level of

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

The study of the problems due to asymmetric information was begun when economists analyzed which type of market?

________ account(s)for between 1 and 4 percent of health care costs in the United States.

Over the past 45 years in the United States,________ amounts of production have been devoted to health care,and consumers have been paying ________ of the cost.

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