Exam 5: The Economics of Health Care

Which of the following Nobel laureates became known for the study of asymmetric information?

Of the following high-income countries,which has the highest life expectancy at birth?

By the year 2015,health care spending on Medicare,Medicaid,and other U.S.government programs as a percentage of GDP had reached a level of

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

Federal and state governments in the United States pay for ________ of health care spending.

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

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.In one of the key scenes of the movie,Stoner tries to convince his partner that they should hire someone to burn one of their buildings in order to collect on their insurance policy.Harry Stoner's actions are an example of

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.With insurance and a third-party payer system,what price do consumers pay for medical services?

Because of the ________ of vaccinations,economic efficiency would be improved if more people were vaccinated.

In the United States in 2014,the percentage of firms that employed between 3 and 199 workers and did not offer health insurance as a fringe benefit to the workers was about

Adverse selection refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.

In 1960,out-of-pocket spending on health care in the United States was

The health care system in ________ is referred to as a universal health insurance system,under which every resident is required to enroll in either a private or the government-provided health insurance program.

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.The efficient quantity of medical services is

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 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.At the market equilibrium,

Those who favor changes in the market for health care that would make it more like the markets for other goods and services favor what are generally known as market-based reforms.

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,they ________ of health care services than they would if they paid a price that better represented the true cost of providing the service.

In the United States,consumers usually pay less than the true cost of medical treatment because of

Compared to the United States,health care spending per person in other high-income countries has been