Exam 7: The Economics of Health Care

Those who favor changes in the market for health care that would make it more like the markets for other goods and services are generally in favor of universal health care coverage.

Of the following,which has most likely contributed the most to the rapid rise in health care costs in the United States?

An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy.What is the term used to describe the situation above?

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will generate

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

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

In the United States,total health care spending per person has been ________,and out-of-pocket spending on health care per person has been ________.

Automobile insurance companies have a problem with people who buy insurance and then drive recklessly or take less care to avoid losses after being insured.In other words,the automobile insurance market is subject to

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 $6,000 for a good used car but only $1,000 for a lemon.Sellers of good used cars value their cars at $5,000 each and sellers of lemons value their cars at $800 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?

The rising cost of malpractice insurance is one of le leading causes of the increase in health care spending as a percentage of GDP in the United States.

Consider a used car market in which half the cars are good and half are bad (lemons).Suppose the average price of a good car is $9,000 and the average price of a lemon is $3,000.If rational buyers are willing to pay $6,000 for a used car,then sellers will agree to sell mostly the lemons at this price.What is the term used to describe this situation?

Uninsured patients receiving treatments at hospital emergency rooms that could have been provided less expensively at doctor's offices account for ________ of health care costs in the United States.

In the United States,health care spending per person based on income per person is ________ the average for most other countries.

In the United States in 2009,the percentage of people without any form of health insurance was about

Which of the following individuals is most likely to purchase a life insurance policy that pays out an annual income beginning at a certain age until the individual's death?

How do current tax laws in the United States favor employer-based health care insurance?

The Patient Protection and Affordable Care Act (PPACA)is scheduled to be fully implemented by 2019,at which point

All of the following are part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (PPACA)except

Suggest three ways by which health insurance companies can reduce adverse selection?

In the principal-agent relationship,the agent is