Exam 5: The Economics of Health Care

Insurance companies use deductibles and coinsurance to reduce moral hazard.

In the United States in 2011,over 50 percent of people without health insurance were below the age of 34.

In 2014,the average life expectancy at birth in the United Kingdom and other high-income countries was around ________ years.

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

Which of the following did not contributed to the overall decline in death rates in the United States since 1981?

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.

In the United States in 2012,the percentage of firms that employed between 3 and 199 workers and did not offer health insurance as a fringe benefit to the workers was about

College education tends to result in a positive externality because the recipient receives the full benefit of the education.

The individual mandate provision of the ACA requires

Replacing employment-based health care with a government-run system could reduce employers payments for their workers insurance,but the amount that they would have to pay in overall compensation

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.Marginal social benefit is represented by which curve?

All of the following are ways in which health insurance companies can potentially reduce adverse selection except

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.

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

How might a company that offers to handle all paperwork involved with a health insurance claim for a flat fee face the problem of adverse selection?

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

Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

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 market equilibrium,

Explain why the rates of death due to kidney disease and diabetes has slightly increased in the United States since 1981.

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.Marginal private benefit is represented by which curve?