ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Which of the following statements is false? Significant increase in healthcare spending over the past seventy years can in part be explained by the
increase in the cost of labor-intensive services.
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increase in the overall level of medical care prices.
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increase in intensity and quality of care.
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increase in the share of the healthcare costs spent on manufactured goods such as drugs.
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population growth
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Expert Solution
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Step 1: Define spending
Spending refers to the act of using money to purchase goods, services, or assets. It involves the exchange of currency or other forms of payment for something of value.
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- What proportion on the GDP is spent on health care? 0.2 0.75 0.18 0.30 QUESTION 2 Which of the following options is incorrect about US health care? Health care spending as a share of GDP has been steady from 2008 to 2012 The projected health care spending as a share of GDP in 2020 is lower than the current share. Increase in life expectancy is one of the reasons of increase in health care costs US is categorized as a country with high health care costs QUESTION 3 For every 10 percent increase in price of health care services, demand falls by 3 percent. How much is the own price elasticity of demand for health care? 0.3 3.33 -3.33 -0.3 QUESTION 4 What is a Cadillac plan? Health insurance plan for Cadillac company (car manufacturer) A very generous employer-sponsored health insurance plan There is no such plan A very generous health plan for Cadillac owners QUESTION 5 Demand for health care is not Downward sloping Sensitive to the price of health care Vertical Horizontal…arrow_forwardIt is difficult to argue against the scientific merit of medical discoveries such as treatments for cancer or AIDS. Is scientific merit alone sufficient to determine the rational allocation of medical funds in such high-cost cases? What other kinds of information are relevant?arrow_forwardMandy Cohen, former Secretary of the North Carolina Department of Health and Human Services, in her interview with Namita Seth Mohta, MD, identified two specific areas where healthcare and public health are moving toward the same goal. What are two areas she mentioned? infant mortality, teenage smoking teenage smoking, water quality water quality, early childhood education water quality, infant mortality Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Demand for medical services is price inelastic (Absolute value of price elasticity of demand is less than 1 and greater than zero). Medical services are different from most other goods and services in that the person who determines the demand (the patient) is not the person who makes the payment (payment is made by the insurance company). How does this affect the price elasticity of demand for medical services (increase it or decrease it)? You may assume that this question only refers to people who have health insurance. Ignore co-payments and deductibles and any other out-of-pocket expenses. Please give an explanation.arrow_forwardQuestion 18 The highest percentage of uses of health care funds in the U.S. for 2010 was hospital care. research. home health care.arrow_forwardSince the passage of Medicare in 1965, what has happened to overall medical spending for the elderly? Per capita spending? Out-of-pocket spending? How does this compare with healthcare spending by the non-elderly?arrow_forward
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