Question 1

As the price of medical care rises,the

Accepted Answer

The law of demand states that as prices rise, the quantity demanded decreases, meaning that people will purchase less medical care as the price increases. Therefore, the correct answer is D, "quantity demanded decreases."

Question 2

Many colleges and universities in the United States now require students to purchase health insurance.Such a requirement would

Accepted Answer

Requiring students to purchase health insurance would increase the pool of insured individuals, including healthier college students. This would lead to a lower overall risk for insurance companies and potentially lower premiums for everyone. It would not directly affect the supply or demand for healthcare itself.

Question 3

How do demand and supply influence the increasing cost of health care?

Accepted Answer

The demand for health care is strong and inelastic, meaning that people are willing to pay high prices for necessary health care services, and supply of health care is limited, meaning that there are not enough health care professionals or facilities to meet the demand. This combination leads to increasing costs of health care.

Question 4

Use the following graphs to answer the following questions:
A.
  B.
  C.
  D.
  E.
 
-In terms of supply and demand for hip surgery conducted in a foreign country,which graph represents the expansion of medical tourism as consumers become aware of the high quality of health care that can be found abroad?

Accepted Answer

Graph A shows an increase in demand for hip surgery conducted in a foreign country, which is consistent with the expansion of medical tourism.

Question 5

What would happen to the price and quantity of medical services if a new doctor's office opened in a small town?

Accepted Answer

The opening of a new doctor's office in a small town would increase the supply of medical services. However, demand would likely remain constant because people still require medical attention regardless of the presence of a new doctor's office. As a result, the equilibrium price of medical services would fall (due to an increase in supply and no change in demand) and the equilibrium quantity of medical services provided would increase.

Question 6

As governor,Lynda has decided to balance the budget by reducing the number of people for whom the government provides health care.How does this affect the equilibrium price and quantity of medical services?

Accepted Answer

Reducing the number of people for whom the government provides health care will reduce the demand for medical services, leading to a decrease in the equilibrium price and quantity of medical services. The reduction in demand will outweigh any potential decrease in supply caused by decreased government funding.

Question 7

Health insurance companies routinely hold patients partially responsible for medical costs.One decides to increase the amount that patients have to pay.Which graph best represents this change?

Accepted Answer

The answer of Health insurance companies routinely hold patients partially...

Question 8

Which of the following statements is true?

Accepted Answer

The answer of Which of the following statements is true?
...

Question 9

Patients in need of an organ transplant often require years of weekly treatments to keep them healthy until a compatible organ is found.Because such maintenance care may last for years,the demand for treatment is

Accepted Answer

The demand for treatment is more elastic than would be the case for an ailment that required stitches in a single office visit because of the long time horizon. This is because patients have more time to adjust their consumption of treatment in response to changes in price or income.

Question 10

Which of the following medical procedures would have the most inelastic demand?

Accepted Answer

A heart transplant is a life-saving medical procedure with no substitutes, making the demand for it highly inelastic. Other procedures, such as the removal of a healthy appendix or a consultation regarding hair loss, have substitutes or are not as essential for survival, making their demand more elastic. Plastic surgery and immunization for the flu may have some elasticity in demand depending on the individual's preferences and circumstances.

Question 11

Use the following graphs to answer the following questions:
A.
  B.
  C.
  D.
  E.
 
-Which graph represents the passage of a law that makes it more difficult to be licensed as a medical doctor who can perform brain surgery?

Accepted Answer

The answer of Use the following graphs to answer the...

Question 12

The federal government has recently decided to expand the amount of prescription drug insurance offered to the elderly.How does this affect the price and quantity of medical services?

Accepted Answer

Expanding prescription drug insurance for the elderly increases their ability to afford medications, thus increasing demand for medical services while supply remains constant. This leads to a rise in both the equilibrium price and quantity of medical services.

Question 13

While throwing a Frisbee to his dog,Fareem sprained his ankle.In regard to seeking medical care,Fareem's demand for care is

Accepted Answer

Fareem's demand for medical care is more elastic than it would be for a broken leg because a sprained ankle is considered a less severe injury than a broken leg. Therefore, Fareem may be more willing to forgo or delay seeking medical care for his sprained ankle compared to if he had a broken leg, leading to a more elastic demand for medical care.

Question 14

What would happen to the price and quantity of medical services if an existing doctor's office closed in a small town,ceteris paribus?

Accepted Answer

If an existing doctor's office closes in a small town, the supply of medical services in the area will decrease, while the demand for medical services in the area will remain constant or decrease slightly. This will cause a decrease in the quantity of medical services available, and an increase in the equilibrium price of medical services in the town. Therefore, the best choice is C, where equilibrium price would rise and quantity would fall because supply decreased and demand was constant.

Question 15

In an effort to reduce the federal budget deficit,Congress has decided to reduce the amount of money spent on Medicare and Medicaid.How does this affect the equilibrium price and quantity of medical services?

Accepted Answer

In this scenario, a reduction in funding for Medicare and Medicaid will reduce the demand for medical services as fewer people will have access to these programs. As a result, the equilibrium price and quantity of medical services will both fall. The decrease in demand will put downward pressure on the price, while the reduction in funding will likely lead to a decrease in the supply of medical services, further contributing to the fall in equilibrium quantity.

Question 16

As governor,Marcy has decided that anyone who works but earns less than $20,000 a year will have their health insurance premiums paid for by the government.How does this affect the equilibrium price and quantity of medical services?

Accepted Answer

By covering health insurance premiums for low-income workers, the government effectively increases the demand for medical services among this group, as they are now more able to afford these services. Since the supply of medical services remains unchanged, the increased demand leads to a rise in both the equilibrium price and quantity of medical services.

Question 17

While tossing a toy to her cat,Danika sprained her ankle.In regard to seeking medical care,Danika's demand for care is

Accepted Answer

When Danika has only a sprained ankle, her demand for medical care is more elastic because the injury is less severe compared to having both a sprained ankle and a severe wound requiring stitches, which would make her demand more inelastic due to the urgency and necessity of care.

Question 18

Which of the following statements is true?

Accepted Answer

The demand for health care among unhealthy older adults is generally considered inelastic because they are likely to require health care regardless of changes in price, due to the necessity of managing or treating their health conditions.

Question 19

Use the following graphs to answer the following questions:
A.
  B.
  C.
  D.
  E.
 
-Which graph represents the development of very expensive technology that makes it possible to cure diseases that previously were incurable?

Accepted Answer

Graph A likely represents the development of very expensive technology that cures previously incurable diseases, as it would show a significant initial investment or cost spike followed by a gradual increase in adoption or effectiveness over time.

Question 20

Use the following graphs to answer the following questions:
A.
  B.
  C.
  D.
  E.
 
-Which graph represents what would happen if hospitals were to receive a significant tax deduction for constructing new facilities?

Accepted Answer

Graph C likely represents an increase in the supply of hospital services, as a significant tax deduction for constructing new facilities would reduce the cost of expanding services, leading to an increase in supply.

Quiz 18: Health Insurance and Health Care

As the price of medical care rises,the

Many colleges and universities in the United States now require students to purchase health insurance.Such a requirement would

How do demand and supply influence the increasing cost of health care?

Use the following graphs to answer the following questions: A. B. C. D. E. -In terms of supply and demand for hip surgery conducted in a foreign country,which graph represents the expansion of medical tourism as consumers become aware of the high quality of health care that can be found abroad?

What would happen to the price and quantity of medical services if a new doctor's office opened in a small town?

As governor,Lynda has decided to balance the budget by reducing the number of people for whom the government provides health care.How does this affect the equilibrium price and quantity of medical services?

Health insurance companies routinely hold patients partially responsible for medical costs.One decides to increase the amount that patients have to pay.Which graph best represents this change?

Which of the following statements is true?

Patients in need of an organ transplant often require years of weekly treatments to keep them healthy until a compatible organ is found.Because such maintenance care may last for years,the demand for treatment is

Which of the following medical procedures would have the most inelastic demand?

Use the following graphs to answer the following questions: A. B. C. D. E. -Which graph represents the passage of a law that makes it more difficult to be licensed as a medical doctor who can perform brain surgery?

The federal government has recently decided to expand the amount of prescription drug insurance offered to the elderly.How does this affect the price and quantity of medical services?

While throwing a Frisbee to his dog,Fareem sprained his ankle.In regard to seeking medical care,Fareem's demand for care is

What would happen to the price and quantity of medical services if an existing doctor's office closed in a small town,ceteris paribus?

In an effort to reduce the federal budget deficit,Congress has decided to reduce the amount of money spent on Medicare and Medicaid.How does this affect the equilibrium price and quantity of medical services?

As governor,Marcy has decided that anyone who works but earns less than $20,000 a year will have their health insurance premiums paid for by the government.How does this affect the equilibrium price and quantity of medical services?

While tossing a toy to her cat,Danika sprained her ankle.In regard to seeking medical care,Danika's demand for care is

Which of the following statements is true?

Use the following graphs to answer the following questions: A. B. C. D. E. -Which graph represents the development of very expensive technology that makes it possible to cure diseases that previously were incurable?

Use the following graphs to answer the following questions: A. B. C. D. E. -Which graph represents what would happen if hospitals were to receive a significant tax deduction for constructing new facilities?