Exam 5: The Economics of Health Care

The provision of the Patient Protection and Affordable Care Act (ACA)which states that every firm with more than 200 full-time employees must offer health insurance to its employees and must automatically enroll them in the plan is the ________ provision.

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

In a market with positive externalities,the market equilibrium quantity will be less than the efficient equilibrium quantity.

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

The United Kingdom has a health care system under which the government owns most of the hospitals and employs most of the doctors.

________ occurs when actions taken by one party to a transaction are different from what the other party expected at the time of the transaction.

Consumers usually pay less than the total cost of medical treatment because

Typically,the ________ in a country,the higher the level of spending per person on health care.

As a percentage of GDP,health care spending on Medicare and Medicaid is expected to double over the next 40 years unless health care costs begin to grow at a slower rate.

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.If consumers paid the full price of medical services,the price they would pay is

If an employee receives health insurance through his or her employer,the employer

In the United States from 1981 to 2011,deaths from which of the following increased?

Figure 5-2 Figure 5-2 shows the effect of a positive externality on the market for vaccinations. -Refer to Figure 5-2 On the above graph,identify the market equilibrium price and quantity,the efficient equilibrium price and quantity,and the value of the deadweight loss resulting from too few people receiving vaccinations.

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

Compared to the United States,health care spending per person in other high-income countries has been

Two consequences of asymmetric information are adverse selection and moral hazard.An important distinction between the two is

The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as adverse selection.

Some economists have argued that certain characteristics of the delivery of health care justify government intervention.One of these characteristics is

"Cost disease" refers to the tendency for high productivity in the service sector to lead to lower costs in those industries.

The largest government-run health care system in the world,with 1.7 million employees,is the National Health Service (NHS)in the United Kingdom.The NHS receives its funding primarily from