Exam 7: The Economics of Health Care

Most doctors and hospitals operate as private businesses in all of the following countries except

Because of asymmetric information,most used cars that are offered for sale will be sold for prices that are greater than their true value.Because of this fact,the used car market falls victim to

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.The efficient price of medical services is

Of the following,the most rapid rise in health care costs in the United States can be attributed to

In the United States in 2014,the percentage of people that directly purchased an individual or family health insurance policy from an insurance company was about

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

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?

If a buyer in an economic transaction has more information than the seller,the buyer benefits at the expense of the seller.This phenomenon is due to

Which of the following is an example of adverse selection?

The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as adverse selection.

Of the following high-income countries,which has the lowest number of MRI units per 1 million population?

Insurance companies use deductibles and coinsurance to reduce moral hazard.

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

Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection.

Over the past 160 years in the United States,life expectancy

In the principal-agent relationship,the principal is

In the United States from 1981 to 2013,deaths from diabetes increased largely due to the effects of

In addition to covering the costs of unpredictable events,health insurance typically covers many planned expenses,such as routine checkups,annual physicals,and the cost of vaccinations.Because of this,health insurance

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 efficient equilibrium quantity is ________ thousand vaccinations.

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 lemons at this price.What is the term used to describe this situation?