Exam 7: The Economics of Health Care

Figure 7-5 Figure 7-5 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 7-5. If consumers paid the full price of medical services, the price they would pay is

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

Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents.

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

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

The rising cost of uninsured patients receiving treatment at hospital emergency rooms is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

Figure 7-1 Figure 7-1 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 7-1. The market equilibrium quantity is ________ thousand vaccinations.

A majority of people in the United States have private health insurance.

By the year 2019, health care's share of gross domestic product in the United States is projected to

The cost of group health insurance is lower than if an individual buys a policy on his own because

Health insurance plans which typically reimburse doctors mainly by paying ________ are known as health maintenance organizations.

What is the principle-agent problem?

The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA) will increase government spending

In most circumstances, employees do not pay taxes on the value of health insurance their employers provide them.

Between 1981 and 2011, deaths from kidney disease increased largely due to the effects of

Figure 7-5 Figure 7-5 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. -Which of the following is not part of the "state health exchanges" provision of the Patient Protection and Affordable Care Act (ACA)?

Figure 7-1 Figure 7-1 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. -Because of the positive externality of vaccinations, economic efficiency would be improved

Article Summary Administrative overhead costs resulting from insurance companies handling reimbursement claims is in large part the reason that health care in the United States is much more expensive than in other countries. An analysis on the administration costs of health care in the United States found that roughly 30 percent of the costs of health care are administrative and that more than 25 percent of health-sector employees work in administration. Health insurance companies are often paid a fixed percentage of the claims they administer, which gives them little to no impetus to increase efficiency and keep costs down. Source: Jeffrey Pfeffer, "The Reason Health Care Is So Expensive: Insurance Companies," Bloomberg Businessweek, April 10, 2013. -Refer to the Article Summary. Even if insurance companies were more efficient and brought administrative costs down, consumers would still pay less than the full cost of medical treatment. This would result in the market equilibrium price of medical services being ________ than the efficient equilibrium price, and the market equilibrium quantity of medical services being ________ than the efficient equilibrium quantity.

In the United States in 2012, about two-thirds of those who were not covered by health insurance

In which of the following countries are substantial co-payments typically required as a part of the health care system?