Exam 5: The Economics of Health Care

Some economists believe that by making health care coverage mandatory for all individuals,the demand for medical services will likely ________,which will ________ the costs of health care.

What is moral hazard?

How can improvements in health increase a country's total income?

What is adverse selection?

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is

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

Consider a used car market in which half the cars are good and half are bad (lemons).A rational buyer in this market should

Consider a used car market in which half the cars are good and half are bad (lemons).If buyers are rational,the prices being offered for used cars will result in

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

Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

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

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

In the United States in 2009,over 90 percent of people without health insurance were below the age of 34.

Between 1981 and 2009,the overall mortality rate in the United States

What has happened to health care's share of gross domestic product in the United States since 1965? How does this compare to what has happened to out-of-pocket spending on health care as a percentage of all spending on health care?

What is adverse selection?

One effect of adverse selection in a market is that the equilibrium quantity of the product may be smaller than it would have been if there were no information problems.