Health care industries in the USA.

Question

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Answer 1

Question

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

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Suppose that the price elasticity for hip replacement surgeries is 0.2. Further suppose that hip replacement surgeries are originally not covered by health insurance and that at a price of $50,000 each, 10,000 such surgeries are demanded each year. LO24.2 a. Suppose that health insurance begins to cover hip replacement surgeries and that everyone interested in getting a hip replacement has health insurance. If insurance covers 50 percent of the cost of the surgery, by what percentage would you expect the quantity demanded of hip replacements to increase? What if insurance covered 90 percent of the price? If insurance covers 50 percent of the bill, just assume that the price paid by consumers falls 50 percent.) b. Suppose that with insurance companies covering 90 percent of the price, the increase in demand leads to a jump in the price per hip surgery from $50,000 to $100,000. How much will each insured patient now pay for a hip replacement surgery? Compared to the original situation,…

In 2017, health care spending in the US accounted for approximately of the GDP. O 5% 17% 25% 38% 45% QUESTION 2 Without any change to the health insurance system, by 2082, health care spending in the US is expected to reach 5% 18% 25% 49% QUESTION 3 The main reason why health care spending is increasing over time is O Increasing administrative costs Increasing uncompensated care O population aging increase in sophistication and quality of medical services the Affordable Care Act QUESTION 4 Regarding health insurance, the number of uninsured individuals in the US is approximately 8 million 18 million. 28 million 48 million 98 million of the GDP.

Suppose you are a politician being criticized in a debate for your commitment to reducing the growth of medical spending. Which of the following is the most appropriate response? O a. There is empirical evidence that medical spending should be capped at 15 percent of GDP. O b. Reducing wasteful health care spending could provide additional funding to the education sector. O c. High health care spending is harmful to bur economic well-being. O d. Fixing treatment prices will lead to greater innovation. Oe. Other developed nations spend far less of their GDP on health care.

Answer 2

Question

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

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Answer 3

Question

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

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Answer 4

Question

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

Answer 6

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

Answer 7

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Answer 8

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

Answer 12

Ch. 24 - Prob. 1DQ Ch. 24 - Prob. 2DQ Ch. 24 - Prob. 3DQ Ch. 24 - Prob. 4DQ Ch. 24 - Prob. 5DQ Ch. 24 - Prob. 6DQ Ch. 24 - Prob. 7DQ Ch. 24 - Prob. 8DQ Ch. 24 - Prob. 9DQ Ch. 24 - Prob. 10DQ

Health care industries in the USA.

Health care industries in the USA.

Explanation of Solution

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Chapter 24 Solutions