Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Textbook Question
Chapter 16, Problem 10SPA
The Economics of Healthcare (Study plan 16.3)
Use the following figure, which shows the marginal benefit from health insurance and the willingness and ability to pay for it, to work Problems 7 to 10. The marginal cost of insurance is a constant $6,000 per family per year. Marginal social benefit from insurance exceeds the willingness and ability to pay by a constant $4,000 per family per year.
10. If the government gave coverage to everyone, what problems would arise in the related market for healthcare services?
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Chapter 16 Solutions
Macroeconomics
Ch. 16.1 - Prob. 1RQCh. 16.1 - Prob. 2RQCh. 16.1 - Prob. 3RQCh. 16.1 - Prob. 4RQCh. 16.2 - Prob. 1RQCh. 16.2 - Prob. 2RQCh. 16.2 - Prob. 3RQCh. 16.2 - Prob. 4RQCh. 16.3 - Prob. 1RQCh. 16.3 - Prob. 2RQ
Ch. 16.3 - Prob. 3RQCh. 16.3 - Prob. 4RQCh. 16.3 - Prob. 5RQCh. 16 - Prob. 1SPACh. 16 - Prob. 2SPACh. 16 - Prob. 3SPACh. 16 - Prob. 4SPACh. 16 - Prob. 5SPACh. 16 - Prob. 6SPACh. 16 - Prob. 7SPACh. 16 - Prob. 8SPACh. 16 - Prob. 9SPACh. 16 - The Economics of Healthcare (Study plan 16.3) Use...Ch. 16 - Prob. 11APACh. 16 - Prob. 12APACh. 16 - Prob. 13APACh. 16 - Prob. 14APACh. 16 - Prob. 15APACh. 16 - Prob. 16APACh. 16 - Prob. 17APACh. 16 - Prob. 18APACh. 16 - Prob. 19APACh. 16 - Prob. 20APACh. 16 - Prob. 21APACh. 16 - Prob. 22APACh. 16 - Prob. 23APACh. 16 - Prob. 24APA
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- Question 4 of 6. Which of the following individuals may qualify for a health savings account (HSA)? 0000 Ben and Vivian are covered by Medicare and a supplemental insurance policy. Dominique and Luca have health insurance through the Marketplace. Their deductible is $2,750. Deacon and Annie are covered by a plan through Deacon's work. Their deductible is $4,200. Victor is covered by Medicaid.arrow_forward1. If the number of people with insurance increases, then what will most likely occur? a. a. a. a. a. The demand for health care will decrease. The demand for health care will increase. The demand for health care will be unaffected. There will be less preventive care. The amount of preventive care will be unaffected. 2.Requiring patients to pay a portion of the cost of the medical care they receive is designed to reduce the severity of a. a. a. a. a. moral hazard. diminishing returns. adverse selection. the principal-agent problem. market failure.arrow_forwardJay Bhattacharya and M. Kate Bundorf of Stanford University have found evidence that people who are obese and work for firms that have employer-provided health insurance receive lower wages than people working at those firms who are not obese. At firms that do not provide health insurance, obese workers do not receive lower wages than workers who are not obese. Source: Jay Bhattacharya and M. Kate Bundorf, "The Incidence of the Health Care Costs of Obesity," Journal of Health Economics, Vol. 28, No. 3, May 2009, pp. 649-58. 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. Regarding the…arrow_forward
- There is considerable evidence that societies that spend more on social services – housing, income support, food, transportation, built environment, community safety – spend less on health care, all other things equal. Why might this be true? a. After spending so much on social services, there is simply less to go around for health care. b. Much of health care spending occurs because people are lonely and desperate for someone to talk to, and health professional have to let them in the door. c. The “finding” is an illusion, some countries mask health spending within the social sector and vice versa. d. Stronger social environments enable people to be healthier and more resilient without health system intervention.arrow_forwardWho does general health insurance cover in terms of persons? Who can be excluded? How is the obligation to pay universal health insurance premium regulated?arrow_forwardWhat are the pro and cons of National Health Service and National Health Insurance when controlling costs while maintaining high quality of care?arrow_forward
- 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_forward1.what do you understand by the term health insurance? 2.describe the different types of health insurance 3. Discuss factors that would make community based health insurance and private insurance successful.arrow_forwardLA O Marginal Cost Marginal Benefit Q₂ Q₁ Quantity Refer to the diagram. Economists would argue that health care should be provided to patients in some amount less than Q 1. amount Q 2. amount Q 1. some amount between Q 1 and Q 2.arrow_forward
- Take a look at how the different healthcare systems around the world works. How would you advise Congress to make effective health reform for the US health system?arrow_forwardExplain how health insurance works and describe the different health insurance plans that are available?arrow_forwardWhat is the opportunitiy cost of having health insurance? What is the opportunity cost of not having health insurance?arrow_forward
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