Exam 7: The Economics of Health Care

Figure 7-1 Figure 7-1 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 7-1.At the market equilibrium

By 2015, spending on federal health care programs such as Medicare and Medicaid had grown to 6 percent of GDP.

Since 1960, out-of-pocket spending on health care has increased sharply as a fraction of all health care spending.

Economists who support market-based reforms for health care believe that increased competition among providers of health care would ________ costs and ________ economic efficiency.

Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase a health insurance policy?

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 most circumstances, employees do not pay taxes on the value of health insurance their employers provide them.

Under the Patient Protection and Affordable Care Act (ACA), residents who do not have health insurance will not be allowed to seek employment.

In the United States in 2014, the percentage of firms that employed more than 200 workers and offered health insurance as a fringe benefit to the workers was about

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

In which of the following countries are substantial co-payments typically required as a part of the health care system?

In the United States, doctors and hospitals that provide most health care are

Greater availability of lower-cost drugs will tend to shift the ________ curve for medical services to the ________.

One reason why adverse selection problems arise in health insurance markets is that

Figure 7-1 Figure 7-1 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 7-1.Marginal private benefit is represented by which curve?

Of the following high-income countries, which has the highest number of CT scanners per 1 million population?

Suppose you see a 2006 Scion xB Sport Wagon advertised in the local newspaper for $8,500.If you knew the car was reliable, you would be willing to pay $10,000 for it.If you knew the car was unreliable, you would only be willing to pay $5,500 for it.Under what circumstances should you buy the car?

On average, people in the United States spend a greater percentage of their income on health care than do people in most other countries.

For many small firms, providing health insurance for their workers

What is adverse selection?