Exam 5: The Economics of Health Care

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.

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Question 1

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Adverse selection is the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction.Moral hazard refers to the actions people take after they enter into a transaction that make the other party to the transaction worse off.An important difference between the two is that adverse selection refers to what happens at the time of entering into a transaction (for example,a reckless driver buys automobile insurance)while moral hazard refers to what happens after entering into the transaction (for example,the insured driver drives his car off a highway and into a tree).

In the United States from 1981 to 2015,deaths from ________ increased largely due to the effects of increasing obesity.

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Question 2

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A majority of people in the United States do not have private health insurance.

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Question 3

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False

The individual mandate provision of the ACA requires

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Question 4

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

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Question 5

What are two reasons why employees would prefer for their employer to pay for their health insurance rather than receiving increased wages and paying for their own health insurance?

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Question 6

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

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Question 7

In the United States in 2016,a majority of people received health care through

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Question 8

Economists John Cogan,Glenn Hubbard,and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

(Multiple Choice)

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Question 9

If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost,the quantity of medical services provided would decrease.

(True/False)

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Question 10

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.

(Multiple Choice)

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Question 11

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

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Question 12

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 social benefit is represented by which curve?

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Question 13

Suppose you see a 2012 Ford Mustang GT advertised in the local newspaper for $15,000.If you knew the car was reliable,you would be willing to pay $17,000 for it.If you knew the car was unreliable,you would only be willing to pay $12,000 for it.Under what circumstances should you buy the car at the asking price?

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Question 14

About ________ of research on new medicines is carried out in the United States.

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Question 15

Vaccinations tend to result in a negative externality.

(True/False)

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Question 16

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

(Multiple Choice)

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Question 17

In the United States,the bulk of health care spending is paid by health insurance companies.Such a system is also called a ________ where consumers of health care pay a nominal fee and the rest is paid by the health insurance provider.

(Multiple Choice)

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Question 18

In the United States in 2016,the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about

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Question 19

Under the Patient Protection and Affordable Care Act (ACA),individuals who do not have health insurance are subject to a fine.

(True/False)

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Question 20

Showing 1 - 20 of 166

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.

In the United States from 1981 to 2015,deaths from ________ increased largely due to the effects of increasing obesity.

A majority of people in the United States do not have private health insurance.

The individual mandate provision of the ACA requires

What are two reasons why employees would prefer for their employer to pay for their health insurance rather than receiving increased wages and paying for their own health insurance?

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

In the United States in 2016,a majority of people received health care through

Economists John Cogan,Glenn Hubbard,and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost,the quantity of medical services provided would decrease.

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.

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

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 social benefit is represented by which curve?

About ________ of research on new medicines is carried out in the United States.

Vaccinations tend to result in a negative externality.

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

In the United States,the bulk of health care spending is paid by health insurance companies.Such a system is also called a ________ where consumers of health care pay a nominal fee and the rest is paid by the health insurance provider.

In the United States in 2016,the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about

Under the Patient Protection and Affordable Care Act (ACA),individuals who do not have health insurance are subject to a fine.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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