Firms that provide workers with health insurance may pay a lower wage to obese workers than to workers who are not obese because the former tend to be less healthy and consequently   A. more costly to insure and therefore employ due to their higher claim submission rate.   B. less productive at work.   C. experience higher rates of absenteeism and early retirement.   D. all of the above.   E. A and B only.

Compare the market for baby products and the market for childbirth (via either vaginal delivery or cesarean section procedure), then discuss the concept of ‘Agreement of Trade’ in both markets.    Using illustrations, briefly explain how the following economic concepts find significance in understanding the market for health and health care:  Scarcity, Choice and Opportunity Cost  Efficiency and Equity  Benefit-Cost Principle

New York Times columnist David Brooks wrote about the implementation of the Affordable Care Act (ACA) and described a possible adverse selection cascade: “the young may decide en masse that it is completely irrational for them to get health insurance that subsidizes others.”   a.  Why might it be irrational for young and healthy people to buy health insurance?   b.  In what sense do young and healthy people who buy health insurance provide a subsidy to people who are older or who are ill?   c.  What do you think Brooks meant by an adverse selection cascade? How might the actions of young and healthy people contribute to adverse selection problems in the health insurance system?

Suppose that Hubert, an economist from an AM talk radio program, and Kate, an economist from a school of industrial relations, are arguing over health insurance. The following dialogue shows an excerpt from their debate: Kate: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits. Hubert: I think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese. Kate: I disagree. I think government funding of health insurance is useful to ensure basic fairness.   The disagreement between these economists is most likely due to (DIFFERENCE IN SCIENTIFIC JUDGEMENT, DIFFERENCE IN VALUES, DIFFERENCE BETWEEN PERCEPTION VERSUS REALITY)   .   Despite their differences, with which proposition are two economists chosen at random most likely to agree? A. Employers should not be restricted from outsourcing work to foreign nations.…

DRAW AND EXPLAIN THE MORTALITY GRAPH-

How would functionalists, conflict theorists and symbolic interactionists suggest that health care delivery might be improved in the USA?

If the demand curve is steeper for particular health services the moral hazard is less ? True or false  Explain briefly.

Suppose consumers consume and gain utility from two types of goods and services – (1) health care and (2) all other goods & services. Using this information, derive the demand curve for health care.