Exam 9: Government, Health, and Medical Care

Suppose a hospital agrees not to charge an insurer a higher price than any other insurer. This would be an example of a _______.

Flu vaccinations are an example of _______.

Suppose a government decides to subsidize flu vaccinations in an attempt to correct a market failure. Without this government intervention, the flu vaccination would most likely be ______ due to the presence of _______.

A price ceiling will increase the quantity of medical care produced in a monopoly market.

Cigarette smoking is an example of _______.

The U.S. federal income tax is _______, and therefore provides incentives for higher income individuals to purchase _______ amounts of employer-sponsored health insurance.

Government funding of medical schools is an example of a supply-side subsidy.

If a price ceiling on physician services is going to be effective, it must be set ______ the competitive market equilibrium price to prevent the market from driving the price _______.

Medical care is a public good, as it is both non-rival and non-excludable.

Penalties levied on consumers for the purchase of "Cadillac" health insurance plans are meant to correct for the positive externalities associated with these plans.

If a price ceiling in a competitive market for physician services is effective, it will result in a market ______ of physician services due to the _______ price.

Medicare and Medicaid are both demand-side subsidies.

Suppose a manufacturer of artificial hips required any medical care provider to purchase a specific set of surgical tools along with each artificial hip. This would be an example of a _______.

Public goods are considered to be both _______ and _______.

Industrial pollution is an example of _______.