Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 24, Problem 2DQ
To determine
The problems of the health care industries and the relation among the problems.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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,…
18. Which of the following best describes the major problems of health care in the U.S?
O Poor results - U.S. lifespan is among the lowest of the high-income countries while infant mortality is among
the highest.
Both high costs and poor results in terms of life span and infant mortality.
Lack of choice - there is only one U.S. health insurer, which is a regulated monopoly.
High costs - the U.S. spends more on health care than any other country.
Atl Econ J (2013) 41:8991DOI 10.1007/s11293-012-9342-2ANTHOLOGYSocial Capital and Income Inequality in the UnitedStatesRati RamPublished online: 17 October 2012# International Atlantic Economic Society 2012Many scholars have explored in recent years various correlates and consequences ofsocial capital along with discussions of the concept. For example, relationship ofsocial capital with population happiness, health, income, economic growth, andhuman development has been researched by several scholars. However, very fewstudies have considered the relationship between social capital and income inequality.One exception to that is the recent work by Robison et al. (Journal of SocioEconomics, 2011) which proposed a theoretical link between social capital andincome distribution and conducted an empirical exploration for the U.S. states forthe census years 1980, 1990, and 2000. Their key measure of social capital wassomewhat narrowly focused on percent of households headed by a single female…
Chapter 24 Solutions
Economics (Irwin Economics)
Ch. 24 - Prob. 1DQCh. 24 - Prob. 2DQCh. 24 - Prob. 3DQCh. 24 - Prob. 4DQCh. 24 - Prob. 5DQCh. 24 - Prob. 6DQCh. 24 - Prob. 7DQCh. 24 - Prob. 8DQCh. 24 - Prob. 9DQCh. 24 - Prob. 10DQ
Ch. 24 - Prob. 11DQCh. 24 - Prob. 12DQCh. 24 - Prob. 13DQCh. 24 - Prob. 14DQCh. 24 - Prob. 15DQCh. 24 - Prob. 16DQCh. 24 - Prob. 17DQCh. 24 - Prob. 18DQCh. 24 - Prob. 1RQCh. 24 - Prob. 2RQCh. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 1PCh. 24 - Prob. 2PCh. 24 - Prob. 3P
Knowledge Booster
Similar questions
- 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.arrow_forwardla. Suppose a particular population has two kinds of health risks, high and low. Let the expected annual health care costs for the high risk be $10,000, and for the low risk, half that. If there are twice as many low risk as high risk individuals, and if the one insurer's administrative load is 20%, what would the community rated premium be if everyone is compelled to and able to buy health insurance? Note: administrative load can be construed as the amount that the insurer has in costs to run the plans above and beyond the "health care costs." a. $7500 b. $6000 c. $12,000 d. $8000 2a. Now suppose insurance rules are changed to permit a new insurer (B) to enter this marketplace and be allowed to exclude the high risk due to pre-existing condition exclusions while the other incumbent insurer (A) is forced to still charge a community rate (as in the ACA). Assuming loads remain at 20% in long run equilibrium, what would the premiums be in each market, (low risk, high risk)? a. $5000,…arrow_forwardIn 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.arrow_forward
- The biggest difference between the United States and Beveridge OR Bismarck counties' health systems is: O a. The US has longer life expectancy for higher income people O b. The US permits/tolerates tens of millions of its citizens to be uninsured O. The US does more health technology assessment before utilization than other countries The US enjoys spending a higher percentage of its GDP on health care, it is a voluntary choice that reflects preferences for health care over other goods and services Od.arrow_forwardSusan was frustrated. As chair of the school of nursing at the local university, she wantedher students to get used to using electronic health records. Ideally, these students wouldleave her program and be able to use their employer’s EHR system without any additionalorientation. Other campus health profession leaders had similar concerns. However, thefaculty found that within a 100-mile radius of the university, the area’s many hospitals andthree main healthcare systems all used different EHR vendors.The local healthcare systems promoted electronic health information. They were allconcerned about the safety and security of the records and the needs of their patients. Theywere also aware of the national push for system to integrate EHRs. In reality, however, therecords housed in the variety of systems could not be shared. The software was toodisconnected and dissimilar.Susan wondered what her next step should be. Which system should she adopt, ifany? How could she help move these…arrow_forwardSuppose that one course of treatment costs $500,000. If given to patient A, it will increase life expectancy by one month; for patient B, by two months; for patient C, by three months; and for patient D, by four months. The marginal cost per additional year of life for the patient most likely to benefit is and the marginal cost per additional year of life for the patient least likely to benefit is O $500,000; $2 million $1.5 million; $6 million $200,000; $500,000 O $2 million; $500,000 $6 million; $1.5 millionarrow_forward
- 37 Identify the correct statement about the health care industries in different countries today: Socialization of the health care industry in Canada eliminates the problem of scarcity in the health care industry. There is a widespread presence of both privately-operated and government-operated enterprises in the health care industries in most European countries. The high-income countries of Europe are able to provide as much health care, free of charge, as their citizens want. Health care in Canada is a socialized industry.arrow_forwardIvey, Great distinction you've made between individual and national demand factors, which is particularly important for understanding the broader economic implications of healthcare demand. For example, the aging population and changing family structures you mentioned not only affect demand directly through increased need for medical services but also have significant implications for healthcare financing and policy. Furthermore, your critique of using life expectancy and infant mortality rates as sole measures of health status introduces an important discussion about the nuances of evaluating healthcare systems. It's crucial to consider a wider range of indicators to capture the complexity of health outcomes and system efficiency. Considering your insights, how do you think healthcare policies can be designed to address these multifaceted factors influencing demand, particularly in the context of ensuring equitable access to care across different demographic groups and regions within…arrow_forward14 Imperfect competition and moral hazard. Some economists have argued that moral hazard and monopolistic health care markets are two socially inefficient problems that e 19bnu partially cancel each other out. Relative to the optimal level of health care Q*, how much health care is provided in the presence of moral hazard? Assume perfectly competitive health care markets. a bns b Relative to the optimal level of health care Q*, how much health care is provided in m the presence of monopolistic health care markets? Assume no moral hazard. A bne c Write a one-sentence defense of the argument that moral hazard and imperfectly competitive health care markets could combine to provide a good level of health care provision Q. d Gaynor and Vogt (2000) contend that this argument is not quite right. Draw your own version of the Pauly tradeoff diagram (Figure 11.8) with a locus of feasible contracts under moral hazard and perfect competition in the health care market. Now draw a new focus of…arrow_forward
- Question 11 Assume that a "bundle" of health care goods is indexed to $100 in 1950, and a "bundle" of all goods is also indexed to $100 in 1950. Furthermore, assume that the medical care consumer price index (CPI) grows at 6% per year, while the general CPI grows at 4.2% per year. After 5 years, approximately how much does does the bundle of health care goods cost? $130 $100 1/1 pts $134 $123arrow_forward4. Hospital versus hospital. Because of the piecemeal structure that theNHS inherited it has tended to provide healthcare in an inefficient way. Hospitals and other facilities are not only old and in need of repair, but in many cases small, separated geographically, and duplicating facilities. Division of labour is often non optimal.In Birmingham, for example, there is an accident and emergency unit at Selly Oak Hospital, whereas the brain and heart specialists who might need to perform urgent operations on those involved in car crashes or suffering heart attacks are at the neighboring Queen Elizabeth Hospital. Thus the issue often arises whether it is preferable to concentrate facilities and staff by building a new and larger hospital to replace a number of older facilities. Q. Illustratethe hospital-versus-hospital trade-off using an isoquant/isocost graph and explaining the economic principles involved in obtaining an optimal situation. In what important respects does this issue…arrow_forward1 What does Lawson mean by a community of care (or Eudaimonic Bubble) and what does he see as being the conditions of possibility for such communities?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
