A) is an unethical way physicians charge wealthier patients more than other patients. B) occurs when the federal government gives fewer funds for Medicaid programs to higher income states. C) is easily practiced when goods and services can be purchased at lower prices and resold at higher prices. D) is only practiced by monopolists. A) is an unethical way physicians charge wealthier patients more than other patients. B) occurs when the federal government gives fewer funds for Medicaid programs to higher income states. C) is easily practiced when goods and services can be purchased at lower prices and resold at higher prices. D) is only practiced by monopolists.

Exam 2: Demand and Supply

A podiatrist fits about 45 patients per week with new orthotic shoe inserts. She finds that by reducing the price of a follow-up visit from $30 to $20, the number of patients returning for a follow-up visit increases from 15 to 25. Further reducing the price from $20 to $5 increases the number of follow-up visits to 30.

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

The number of large US employers offering wellness programs to their employees has been steadily increasing over the years. Weight management, nutrition, fitness, and/or other wellness initiatives are now being offered by more than half of such employers. Use the concept of determinants of health to discuss the reasoning behind this trend. What do the employers expect to gain from this additional expense? Compare short-run versus long-run gains, private versus societal gains.

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(Essay)

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Question 2

Correct Answer:

Verified

An opportunity to participate in wellness programs at no cost provides an incentive for many employees to lead a healthier lifestyle and to ultimately improve their health. Employers realize that many costly diseases are cheaper to prevent than to treat. As a result, employees' healthcare costs decline. Such a reduction may not be immediate though, as it takes on average about three years for employers to see cost-savings. Thus most of the gains are in the long-run. Also there is a certain probability that a part of those long-run savings will be transferred elsewhere if any of the now-healthier employees quit. Employer's gain may be less than societal gain in that case. As more and more employers implement such programs, however, the employers' concerns about transferring a portion of that gain to the society become less relevant.

Costs to individuals such as pain, risk of death and time spent waiting for a procedure are considered _______ of a treatment to patients and provide no benefit to health care providers.

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(Essay)

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Question 3

Correct Answer:

Verified

non-cash/non-monetary costs

Professional evaluations are required to assess an individual patient's _ for medical care while observations of _ enable economists to determine a demand curve for medical care services.

(Essay)

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Question 4

Achieving economic efficiency in the market for hospital emergency room services differs from the perfectly competitive model because:

(Multiple Choice)

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Question 5

Listed below are possible ways to improve the nation's health status, except

(Multiple Choice)

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Question 6

The production of health can be viewed as a function of several inputs. Empirical evidence suggests that

(Multiple Choice)

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Question 7

The need for medical care and the demand for medical care

(Multiple Choice)

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Question 8

Despite the empirical evidence that ___ is not the most important determinant of an individual's health, much of the focus of health economics studies is concentrated on _ because individuals have very little control over other inputs to health such as _____.

(Essay)

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Question 9

Use the concepts of management and economic efficiency to explain why a hospital does not charge more for an MRI performed during an emergency room visit than it does for an MRI performed on a scheduled basis.

(Essay)

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Question 10

The Water-Diamonds Paradox is illustrated when water, which is essential for life, trades at a higher price than diamonds, which are not essential for life.

(True/False)

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Question 11

Consider the following scenario. A pharmaceutical company has spent 230 million dollars developing and testing a new drug. The company projects the total revenue from sales to be about 850 million dollars over the course of three years after the drug approval by the Food and Drug Administration (FDA). The company is close to the completion of the research phase, when they learn that a competing drug has entered the market. Sales projections have been downgraded to 150 million dollars. An investment of an additional 9 million dollars would be required to complete the research and obtain the FDA approval, if the company decides to do so. The cost of producing actual pills, after the research phase is complete, will be close to zero and can be ignored for simplicity. The best advice for this company would be to abandon the production of this drug.

(True/False)

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Question 12

Explain why purchasing an eye examination and a new pair of eyeglasses is much closer to the ceteris paribus assumptions of a perfectly competitive market than the purchase of an appendectomy.

(Essay)

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Question 13

Consider the following scenario. A local pharmacy puts a popular brand of over-the-counter allergy medication, a 30-tablet pack, on sale at 30% off for a week. The quantity of that medication sold during that week (the number of 30-tablet packs), was 27% higher than the week before. The value of the price elasticity of demand for that allergy medication in this particular market is _ and demand can be considered ___.

(Multiple Choice)

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Question 14

A supply curve does all the following, except

(Multiple Choice)

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Question 15

A physical therapy treatment can use a high tech machine to massage patients or a certified massage therapist. If the cost of the machine per unit of service is $100 and the cost of the therapist per unit of service is $50, then the health care provider faces a trade-off of _ units of labor for each _ unit of capital.

(Short Answer)

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Question 16

If my dentist decides to lower the price of teeth whitening treatments, total sales (revenues) for treatments will go up if:

(Multiple Choice)

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Question 17

Price discrimination

(Multiple Choice)

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Question 18

The market demand curve for aspirin

(Multiple Choice)

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Question 19

A person is willing to pay $50 per visit for physical therapy, but she pays $35 per visit. This person receives a consumer surplus of $85 per visit.

(True/False)

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Question 20

Showing 1 - 20 of 30

Costs to individuals such as pain, risk of death and time spent waiting for a procedure are considered _______ of a treatment to patients and provide no benefit to health care providers.

Professional evaluations are required to assess an individual patient's _ for medical care while observations of _ enable economists to determine a demand curve for medical care services.

Achieving economic efficiency in the market for hospital emergency room services differs from the perfectly competitive model because:

Listed below are possible ways to improve the nation's health status, except

The production of health can be viewed as a function of several inputs. Empirical evidence suggests that

The need for medical care and the demand for medical care

Despite the empirical evidence that ___ is not the most important determinant of an individual's health, much of the focus of health economics studies is concentrated on _ because individuals have very little control over other inputs to health such as _____.

Use the concepts of management and economic efficiency to explain why a hospital does not charge more for an MRI performed during an emergency room visit than it does for an MRI performed on a scheduled basis.

The Water-Diamonds Paradox is illustrated when water, which is essential for life, trades at a higher price than diamonds, which are not essential for life.

Explain why purchasing an eye examination and a new pair of eyeglasses is much closer to the ceteris paribus assumptions of a perfectly competitive market than the purchase of an appendectomy.

A supply curve does all the following, except

If my dentist decides to lower the price of teeth whitening treatments, total sales (revenues) for treatments will go up if:

Price discrimination

The market demand curve for aspirin

A person is willing to pay $50 per visit for physical therapy, but she pays $35 per visit. This person receives a consumer surplus of $85 per visit.

Choices: Money, Medicine, and Health

Cost-Benefit and Cost-Effectiveness Analysis

Health Insurance: Financing Medical Care

Insurance Contracts and Managed Care

Physicians

Medical Education, Organization, and Business Practices

Hospitals

Management and Regulations of Hospital Costs

Long-Term Care

Pharmaceuticals

Financing and Ownership of Health Care Providers

Macroeconomics and Medical Care

The Role of Government and Public Goods

History, Demography, and the Growth of Modern Medicine

International Comparisons of Health and Health Expenditures

Economic Evaluation of Health Policy: The Patient Protection and Affordable Care Act of 2010

Value for Money in the Future of Health Care

Filters

Exam 2: Demand and Supply

Costs to individuals such as pain, risk of death and time spent waiting for a procedure are considered _______ of a treatment to patients and provide no benefit to health care providers.

Professional evaluations are required to assess an individual patient's _______ for medical care while observations of _______ enable economists to determine a demand curve for medical care services.

Achieving economic efficiency in the market for hospital emergency room services differs from the perfectly competitive model because:

Listed below are possible ways to improve the nation's health status, except

The production of health can be viewed as a function of several inputs. Empirical evidence suggests that

The need for medical care and the demand for medical care

Despite the empirical evidence that _______ is not the most important determinant of an individual's health, much of the focus of health economics studies is concentrated on _______ because individuals have very little control over other inputs to health such as _______.

Use the concepts of management and economic efficiency to explain why a hospital does not charge more for an MRI performed during an emergency room visit than it does for an MRI performed on a scheduled basis.

The Water-Diamonds Paradox is illustrated when water, which is essential for life, trades at a higher price than diamonds, which are not essential for life.

Explain why purchasing an eye examination and a new pair of eyeglasses is much closer to the ceteris paribus assumptions of a perfectly competitive market than the purchase of an appendectomy.

A supply curve does all the following, except

If my dentist decides to lower the price of teeth whitening treatments, total sales (revenues) for treatments will go up if:

Price discrimination

The market demand curve for aspirin

A person is willing to pay $50 per visit for physical therapy, but she pays $35 per visit. This person receives a consumer surplus of $85 per visit.

Choices: Money, Medicine, and Health

Cost-Benefit and Cost-Effectiveness Analysis

Health Insurance: Financing Medical Care

Insurance Contracts and Managed Care

Physicians

Medical Education, Organization, and Business Practices

Hospitals

Management and Regulations of Hospital Costs

Long-Term Care

Pharmaceuticals

Financing and Ownership of Health Care Providers

Macroeconomics and Medical Care

The Role of Government and Public Goods

History, Demography, and the Growth of Modern Medicine

International Comparisons of Health and Health Expenditures

Economic Evaluation of Health Policy: The Patient Protection and Affordable Care Act of 2010

Value for Money in the Future of Health Care

Filters

Professional evaluations are required to assess an individual patient's _ for medical care while observations of _ enable economists to determine a demand curve for medical care services.

Despite the empirical evidence that ___ is not the most important determinant of an individual's health, much of the focus of health economics studies is concentrated on _ because individuals have very little control over other inputs to health such as _____.