Exam 5: The Economics of Health Care

Figure 5-1 Figure 5-1 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 5-1.Marginal private benefit is represented by which curve?

The Congressional Budget Office estimates that the additional taxes and fees enacted under the ACA will not even cover half of the true cost of the ACA.

In the United States in 2014,the health care industry was the largest employer in ________ states.

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

The largest government-run health care system in the world,with 1.7 million employees,is the National Health Service (NHS)in the United Kingdom.The NHS receives its funding primarily from

Doctors have ________ incentive to control their costs when consumers ________ for a visit to the doctor's office.

The Patient Protection and Affordable Care Act (ACA)is scheduled ________,at which point more than 30 million additional individuals are expected to have health care coverage.

In 2014,________ of the uninsured were younger than age 35.

The number of people receiving Medicare is expected to grow to 74 million by the year

Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide are known as

Briefly describe changes in life expectancy,average height,and infant mortality in the United States since 1850.

Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

What is the term that describes a situation in which one party to an economic transaction has less information than the other party?

If an employee receives health insurance through his or her employer,the employer

________ occurs when actions taken by one party to a transaction are different from what the other party expected at the time of the transaction.

Adverse selection in the market for health insurance arises because

In what ways do economists and policymakers who believe that market-based reforms are the key to improving the health care system criticize the Patient Protection and Affordable Care Act (ACA)?

The difference between adverse selection and moral hazard is that

Figure 5-3 Figure 5-3 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 5-3.If consumers paid the full price of medical services,the equilibrium quantity would be

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?