Exam 7: The Economics of Health Care

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

Figure 7-4 Figure 7-4 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 7-4. With insurance and a third-party payer system, the equilibrium quantity of medical services is

In 2011, ________ of the uninsured were younger than age 34.

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 price is

In the United States in 2012, a majority of people received health care through

College education tends to result in a negative externality because the recipient does not receive the full benefit of the education.

Since 1960, out-of-pocket spending on health care has increased sharply as a fraction of all health care spending.

What is the principal-agent problem?

Figure 7-2 Figure 7-2 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. -One effect of adverse selection in a market is that the equilibrium quantity of the product may be smaller than it would have been if there were no information problems.

The Patient Protection and Affordable Care Act (ACA) is scheduled ________, at which point more than 30 million additional individuals are expected to have health care coverage.

For many small firms, providing health insurance for their workers

Health care is generally considered a normal good. Briefly explain what you would expect to see happen to spending on health care over time, with health care being considered as a normal good.

Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending. Such changes would make it more likely that

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. At the market equilibrium,

Of the following high-income countries, which has the highest male life expectancy at age 65?

In most circumstances, employees pay taxes on the value of health insurance their employers provide them.

Health insurance typically pays for most preventive care procedures in all of the following countries except

Which of the following factors help to explain the sustained increases in health care spending in the United States, and which do not? a. the additional paperwork, duplication, and waste generated in the U.S. health care system compared to systems in other countries b. the increasing costs of malpractice insurance and malpractice lawsuit settlements c. the number of uninsured patients receiving hospital treatment that could have been preformed at a lower cost in doctors' offices d. the slow growth in labor productivity in health care compared to that in the economy as a whole e. the aging population f. increases in the cost of providing health care

Which of the following is a part of the "employer mandate" provision of the Patient Protection and Affordable Care Act (ACA)?

Typically, the higher the level of income per person in a country, the higher the level of spending per person on health care. This relationship between income and spending indicates that health care is