ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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3. Moral hazard in the market for healthcare services leads
Question content area bottom
Part 1
A.
to providers over treating patients..
B.
to healthy people not buying health insurance.
C.
patients to adopt healthy life styles.
D.
to all people buying health insurance.
E.a separating equilibrium.
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- 7) The graph below depicts the social loss from the existence of health insurance in the presence of moral hazard. Price Demand curve with partial coinsurance Quantity a. What is the cause of the social loss? Briefly explain. b. Why do we have health insurance if social loss is created as a result of health insurance? ( Social lossarrow_forwardHow are preexisting medical conditions covered under the Affordable Care Act? A. They will continue to be covered under a special federal program. B. States are mandated to have risk pools to cover preexisting conditions. C. Private insurance plans have to cover them starting 2014. D. There is no provision in the law to cover preexisting conditions.arrow_forward1. What are the four pillars of Moral Education in teaching and learning? What are the benefits of morality? How are moral values helpful to develop a better community? Justify with reasoning by highlightingarrow_forward
- 9. Consider the following hypothetical three-stage screening test for a cancer with the following rates of detection and costs: Stage 2 3 Number of Cases Detected 100 110 125 135 Total $150,000 $180,000 $250.000 $310.000 A. Calculate the average cost per cancer detected in the three stages. B. Calculate the marginal cost per cancer detected in the three stages. C. Suppose that the marginal benefit per treated case is $4,600 per person. What would be the optimal screening, given the costs?arrow_forwardBecause of the moral hazard problem, a-the government has increased incentive to regulate insurance markets. b-low-risk individuals do not choose insurance. c-the costs of providing insurance decreases. d-full insurance may no longer be efficient.arrow_forwardQUESTION 5 The tools of health economics are irrelevant to emerging economies’ health systems because: a. Government necessarily plays a huge role there since so many citizens are poor b. They just need to worry about infectious disease for the next 10 years c. Health economics is only useful when private insurances is involved and there is little to none in these countries d. None of the above, health economics tools are useful to any society facing tradeoffs.arrow_forward
- Canarrow_forward1. Using three (3) illustrations, explain the concepts of disparities in health determinants and health outcomes. 2. In economics, efficiency is a critical concept in assessing the most effective utilization of resources. Discuss three types of economic efficiencies. Can efficiency reduce disparities in health determinants and health outcomes? If so, how? 3. Beyond efficiency, discuss four (4) ways the concepts of ethics and equity are applied to address health disparities.arrow_forwardGive typing answer with explanation and conclusionarrow_forward
- Government provided social insurance is most beneficial in the cases where the probability of adverse events is _____ to calculate and the costs of the adverse events are _____. a.hard/low b.easy/high c.easy/low d.hard/higharrow_forward___ occurs when insurance companies structure plans that provide an incentive for healthier consumers to enroll while discouraging enrollment of higher-risk individuals a. Guaranteed renewability b. Cherry-picking c. Moral Hazard d. Asymmetric Information e. Adverse Selectionarrow_forwardPls help ASAParrow_forward
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