Exam 7: The Economics of Health Care

In which of the following countries are substantial co-payments typically required as a part of the health care system?

Vaccinating people against a communicable disease such as influenza not only reduces the chances that the person vaccinated will catch the disease but also reduces the probability that an epidemic of the disease will occur.Which of the following statements is true?

Health insurance companies impose deductibles on policies and co-payments on claims

Why might a young,healthy person choose not to buy health insurance?

Of the following high-income countries,which has the highest mortality ratio for cancer?

Of the following high-income countries,which has the lowest infant mortality rate?

In ________,health care spending per person based on income per person is significantly higher than the average for most other countries.

In the United States,health care spending as a percentage of GDP has declined since 1965.

Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as

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

The study of the problems due to asymmetric information was begun when economists analyzed which type of market?

If a state requires all drivers to purchase auto insurance,insurance companies still face the problem of

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?

Canada has a single-payer health care system in which the government provides national health insurance to all Canadian residents.

Pricing insurance policies is made difficult because buyers have more information than sellers.This difficulty is an example of

In the United States in 2014,over 90 percent of people without health insurance were below the age of 35.

College education tends to result in a positive externality because the recipient receives the full benefit of the education.

The United Kingdom has a health care system under which the government owns most of the hospitals and employs most of the doctors.

In the 1973 movie Save the Tiger,Jack Lemmon plays Harry Stoner,the CEO of a clothing manufacturer whose business has fallen on hard times.At one point in the movie,Stoner convinces his partner to hire someone to burn one of their buildings to collect on their insurance policy.What term refers to the information problem that led the insurance company to sell a policy for this building to Stoner and his partner?

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 performed 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