Exam 5: The Economics of Health Care

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

Federal and state governments in the United States pay for ________ of health care spending.

In the United States,consumers usually pay less than the true cost of medical treatment because of

The health care system in ________ is referred to as socialized medicine,under which the government owns most of the hospitals and employs most of the doctors.

In the United States in 2012,the percentage of people with some form of health insurance was about

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,the equilibrium quantity of medical services is

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 $9,000 for a good used car but only $3,000 for a lemon.Sellers of good used cars value their cars at $7,500 each and sellers of lemons value their cars at $1,500 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?

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

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

Adverse selection refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.

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

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 price do consumers pay for medical services?

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 as a percentage of GDP has declined since 1965.

Which of the following is not part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (ACA)?

Of the following high-income countries,which has the highest life expectancy at birth?

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

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.

Those who favor changes in the market for health care that would make it more like the markets for other goods and services favor what are generally known as market-based reforms.

In 2013,the average height of adult males in the United States was