Exam 7: The Economics of 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.

Lower deductibles for employer-provided health care will tend to shift the ________ curve for medical services to the ________.

A doctor pursuing the interests of his patients rather than his own interests is an example of the principal-agent problem.

Under current tax law individuals do not pay taxes on health insurance benefits they receive from their employers.As a result

The health care system in ________ is referred to as a single-payer health care system,and is a system in which the government provides national health insurance to all residents.

Suppose you see a 2012 Ford Mustang GT advertised in the local newspaper for $15,000.If you knew the car was reliable,you would be willing to pay $17,000 for it.If you knew the car was unreliable,you would only be willing to pay $12,000 for it.Under what circumstances should you buy the car?

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. -Refer to Figure 7-2.Marginal social benefit is represented by which curve?

The overall decline in death rates in the United States since 1981 was due to all of the following except

Over time,people in the United States and other high-income countries have,on average,become taller,which is an indication that their nutritional status has improved.

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,what price do consumers pay for medical services?

A contract under which a buyer agrees to make payments in exchange for the provider agreeing to pay some or all of the buyer's medical bills is referred to as

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. -Refer to Figure 7-2.The market equilibrium quantity is ________ thousand vaccinations.

In 2015,health care's share of gross domestic product in the United States was about

The Congressional Budget Office estimates that ________ of the increase in federal spending on Medicare and Medicaid over the next 75 years will be due to increases in the cost of providing health care.

Since 1981,deaths from cardiovascular diseases have decreased in the United States.

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

About ________ of research on new medicines is carried out in the United States.

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 efficient equilibrium quantity is ________ thousand vaccinations.

Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance.This problem is an example of

In the United States,out-of-pocket spending on health care is about ________ percent of all health care spending.