Deck 6: The Demand for Health

Question 1

Which of the following can be regarded as a fundamental commodity from an economic and policy perspective and one of the true objects of people's wants and for which other tangible goods and services are used to create it?

A) Health
B) Wealth
C) Life
D) Intelligence

Answer 1

A

Question 2

Because health is not tradeable or purchased directly, it is possible for it to be analyzed in the market framework.

Answer 2

False

Question 3

Which of the following are important insights captured by Grossman's model?

A) Health care is but one input in generating improvements in health.
B) Genetics and environmental factors are aspects of health that cannot be controlled.
C) Individuals do not demand health care for its own sake.
D) Health care is a service that is dramatically overused.

Answer 3

A, C

Question 4

Which of the following may shift the MEC curve to the left because people will eat richer foods and decrease exercise?

A) Age
B) Education
C) Wealth
D) Environment

Question 5

A model of the demand for health, developed in the 1970s by Michael Grossman, treats investment in health as a form of investment in _________ ___________.

Question 6

Health is modeled as being produced by individuals using which of the following means?

A) Genetics
B) Research
C) Environment
D) Lifestyle choices
E)Medical care

Question 7

Which of the following is a measure of how much extra output can be produced with an extra unit of capital input?

A) Marginal efficiency of capital
B) Diminishing marginal returns
C) Indifference curve
D) Diminishing marginal utility

Question 8

In the investment model of health, the demand for health is conditional on both the cost of health capital and the rate of depreciation of the health stock.

Question 9

An individual with a lower endowment of health will require fewer inputs to achieve the same health stock than will an individual with a higher endowment.

Question 10

In the investment model, which of the following shifts the MEC curve to the right by raising the productivity of the inputs into the production of health?

A) Age
B) Education
C) Wealth
D) Environment