Exam 5: The Economics of Health Care

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

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

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

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.The efficient quantity of medical services is

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

Under the Patient Protection and Affordable Care Act (ACA),individuals who do not have health insurance will be subject to a fine.

Of the following high-income countries,which has the highest obesity rate?

Vaccinations tend to result in a negative externality.

Which of the following is an example of adverse selection?

Most doctors are employed by the government and most hospitals are owned by the government in

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

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

Two key consequences of asymmetric information are adverse selection and moral hazard.Define each concept,provide one example of each and explain how the two concepts differ.

The difference between adverse selection and moral hazard is that

About ________ of research on new medicines is carried out in the United States.U.S.

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?

In the United States,out-of-pocket spending on health care per person

In the United States in 2012,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

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

Adverse selection in the market for health insurance arises because