Exam 5: The Economics of Health Care

In the United States,health care spending on people ________ is six times greater than on people ________.

Typically,the ________ in a country,the higher the level of spending per person on health care.

Replacing employment-based health care with a government-run system could reduce employers payments for their workers insurance,but the amount that they would have to pay in overall compensation

"Cost disease" refers to the tendency for high productivity in the service sector to lead to lower costs in those industries.

Two consequences of asymmetric information are adverse selection and moral hazard.An important distinction between the two is

Explain why the rates of death due to kidney disease and diabetes have slightly increased in the United States since 1981.

About ________ of pharmaceutical patents are issued to U.S.firms.

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

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 $9,000 for a good used car but only $3,000 for a lemon.Sellers of good used cars value their cars at $7,500 each and sellers of lemons value their cars at $1,500 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?

________ account(s)for between 1 and 4 percent of health care costs in the United States.

In what ways do economists and policymakers who believe that the federal government should have a larger role in the health care system criticize the Patient Protection and Affordable Care Act (ACA)?

Of the following high-income countries,which has the highest obesity rate?

Two key consequences of asymmetric information are adverse selection and moral hazard.Define each concept,provide one example of each,and explain how the two concepts differ.

The Pre-Existing Condition Insurance Plan is a federally administered part of the Affordable Care Act,and is designed for people with pre-existing medical conditions to obtain insurance.By offering health insurance to all U.S.citizens with pre-existing medical conditions,the Pre-Existing Condition Insurance Plan

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,the deadweight loss is equal to

Health problems prevent people from working harder,which can lower a country's total income.This indicates that in effect,health problems

Over time,people in the United States and other high-income countries have,on average,become taller,which is an indication that their nutritional status has improved.

What is health insurance?

In the United States,out-of-pocket spending on health care per person

Consumers usually pay less than the total cost of medical treatment because