Question 1

When consumers pay only a fraction of the true cost of medical services, their demand increases.The marginal cost of producing these extra services

Accepted Answer

When consumers pay less than the true cost, they tend to overconsume services, leading to a situation where the marginal cost of producing these extra services exceeds the marginal benefit consumers receive.

Question 2

Figure 7-2
  
Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 7-2.With insurance and a third-party payer system, what price do doctors receive for medical services?

Accepted Answer

In a third-party payer system, doctors typically receive the full price for services, which is $55 in this context.

Question 3

The increase in the number of surgeries performed outside hospitals will tend to shift the ________ curve for medical services to the ________.

Accepted Answer

The increase in surgeries performed outside hospitals increases the supply of medical services, shifting the supply curve to the right.

Question 4

In the United States, consumers usually pay ________ than the true cost of medical treatment because of ________.

Accepted Answer

In the United States, third-party payers (such as insurance companies or government programs like Medicare and Medicaid) often negotiate lower prices for medical services from healthcare providers, which can result in consumers paying less than the true cost of medical treatment. However, rising insurance premiums may lead to consumers paying more overall for healthcare. Adverse selection refers to the phenomenon where high-risk individuals are more likely to purchase insurance, which can lead to higher overall premiums. Rising insurance deductibles can also result in consumers paying more out-of-pocket for medical treatment.

Question 5

Figure 7-2
  
Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 7-2.With insurance and a third-party payer system, what price do consumers pay for medical services?

Accepted Answer

In a third-party payer system, consumers typically pay a lower price than the actual cost of the service due to insurance coverage. The figure likely shows that consumers pay $25, which is the out-of-pocket cost after insurance.

Question 6

The number of people receiving Medicare coverage is expected to ________ by the year 2025.

Accepted Answer

According to projections from the Centers for Medicare and Medicaid Services, the number of people receiving Medicare coverage is expected to grow to 74 million by the year 2025.

Question 7

Figure 7-2
  
Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 7-2.The efficient quantity of medical services is

Accepted Answer

The answer of Figure 7-2
  
Figure 7-2 represents the...

Question 8

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,

Accepted Answer

When consumers only pay a deductible, doctors may have less incentive to control costs because the insurance covers most expenses, reducing the pressure to keep prices low.

Question 9

Figure 7-2
  
Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 7-2.If consumers paid the full price of medical services, the price they would pay is

Accepted Answer

The answer of Figure 7-2
  
Figure 7-2 represents the...

Question 10

The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to

Accepted Answer

The answer of The Congressional Budget Office estimates that most...

Question 11

In the United States, health care spending on people over age 65 is ________ on people aged 18 to 24.

Accepted Answer

According to the National Health Expenditure Accounts, in 2018, the per capita health care spending on people over 65 was $18,988, while the per capita spending on people aged 18 to 24 was $2,937. Therefore, the health care spending on people over 65 is six times greater than that on people aged 18 to 24.

Question 12

All of the following are part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (ACA)except

Accepted Answer

The statement that "individuals were allowed to opt out of the insurance program if they could prove they had no serious health issues and did so before the act fully took effect in the year 2014" is false. There was no provision in the ACA that allowed individuals to opt out of the insurance program based on their health status.

Question 13

Figure 7-2
  
Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 7-2.If consumers paid the full price of medical services, the equilibrium quantity would be

Accepted Answer

The answer of Figure 7-2
  
Figure 7-2 represents the...

Question 14

Figure 7-2
  
Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 7-2.With insurance and a third-party payer system, the equilibrium quantity of medical services is

Accepted Answer

The intersection of the demand and supply curves in the market for medical services with insurance and a third-party payer system occurs at a quantity of 700 units, so the equilibrium quantity of medical services is 700.

Question 15

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,

Accepted Answer

When consumers have insurance provided by their employers, they only pay a deductible for a visit to the doctor's office, which means the price they pay for health care services does not represent the true cost of providing the service. This can lead to increased demand for health care services as consumers may seek out more services than they would if they had to pay the full cost.

Question 16

Higher deductibles for employer-provided health insurance will tend to shift the ________ curve for medical services to the ________.

Accepted Answer

Higher deductibles make medical services more expensive for consumers, reducing their demand and shifting the demand curve to the left.

Question 17

In addition to covering the costs of unpredictable events, health insurance typically covers many planned expenses, such as routine checkups, annual physicals, and the cost of vaccinations.Because of this, health insurance

Accepted Answer

Health insurance often encourages overuse of healthcare services because individuals may consume more services than necessary since they do not bear the full cost of care.

Question 18

Figure 7-2
  
Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 7-2.The efficient price of medical services is

Accepted Answer

The efficient price of medical services is where the marginal cost and marginal benefit intersect, which is at point E. At this point, the price is $40, and the quantity of medical services demanded is Q*. Therefore, the best choice is B.

Question 19

Figure 7-2
  
Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 7-2.With insurance and a third-party payer system, what is the amount of the deadweight loss?

Accepted Answer

The deadweight loss in a third-party payer system is the loss of economic efficiency when the quantity of a good or service is not optimal. In this scenario, the deadweight loss is calculated as the area of the triangle formed by the difference between the quantity demanded and the quantity supplied at the price paid by the third-party payer. The amount of $3,000 represents this inefficiency in the market.

Question 20

Of the following U.S.presidents, which was the first to propose a national health insurance program to Congress?

Accepted Answer

Harry Truman was the first U.S. president to propose a national health insurance program to Congress in 1945. Although his proposal was not passed, it laid the groundwork for future attempts to establish a national health insurance system in the United States.

Quiz 7: The Economics of Health Care

When consumers pay only a fraction of the true cost of medical services, their demand increases.The marginal cost of producing these extra services

Figure 7-2 Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-2.With insurance and a third-party payer system, what price do doctors receive for medical services?

The increase in the number of surgeries performed outside hospitals will tend to shift the curve for medical services to the .

In the United States, consumers usually pay than the true cost of medical treatment because of .

Figure 7-2 Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-2.With insurance and a third-party payer system, what price do consumers pay for medical services?

The number of people receiving Medicare coverage is expected to ________ by the year 2025.

Figure 7-2 Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-2.The efficient quantity of medical services is

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,

Figure 7-2 Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-2.If consumers paid the full price of medical services, the price they would pay is

The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to

In the United States, health care spending on people over age 65 is ________ on people aged 18 to 24.

All of the following are part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (ACA) except

Figure 7-2 Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-2.If consumers paid the full price of medical services, the equilibrium quantity would be

Figure 7-2 Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-2.With insurance and a third-party payer system, the equilibrium quantity of medical services is

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,

Higher deductibles for employer-provided health insurance will tend to shift the curve for medical services to the .

In addition to covering the costs of unpredictable events, health insurance typically covers many planned expenses, such as routine checkups, annual physicals, and the cost of vaccinations.Because of this, health insurance

Figure 7-2 Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-2.The efficient price of medical services is

Figure 7-2 Figure 7-2 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 7-2.With insurance and a third-party payer system, what is the amount of the deadweight loss?

Of the following U.S.presidents, which was the first to propose a national health insurance program to Congress?