Exam 5: The Economics of Health Care

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 price is

The Congressional Budget Office estimates that ________ of the increase in federal spending on Medicare and Medicaid over the next 75 years will be due to increases in the cost of providing health care.

Pricing insurance policies is made difficult because buyers have more information than sellers.This difficulty is an example of

The Congressional Budget Office estimates that ________ account(s)for less than 1 percent of health care costs in the United States.

If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost,the quantity of medical services provided would decrease.

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

The Congressional Budget Office estimates that the additional taxes and fees enacted under the ACA will not even cover half of the true cost of the ACA.

in the United States since 1900,life expectancy at birth has ________ and the death rate has ________.

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 price of medical services is

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

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

The provision of the Patient Protection and Affordable Care Act (ACA)Insurance companies are required to participate in a high-risk pool that will insure individuals with pre-existing medical conditions who have been unable to buy health insurance for at least six months is the ________ provision.

What are two reasons why employees would prefer for their employer pay for their health insurance rather than receiving increased wages and paying for their own health insurance?

In a market with positive externalities,the market equilibrium price will be greater than the efficient equilibrium price.

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

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

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

On average,people in low-income countries ________ than people in high-income countries.

Why is the study of asymmetric information associated with the market for "lemons"?

Changes in the health of the average person are relatively unimportant as an indicator of changes in the standard of living.