Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 16, Problem 19APA
(a)
To determine
Efficient quantity
(b)
To determine
The graphical illustration of the health insurance market.
(c)
To determine
The change in
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Students have asked these similar questions
What would happen if, in order to provide lower cost health care, the government decided to set a price ceiling (Pmax) in the health insurance market? (Please answer questions a, b, and c below.)
What is the effect of this maximum price legislation on the market for health insurance?
Briefly explain the situation for both consumers and producers (i.e. health care providers).
What might the government do to achieve their intended aims (i.e. lower costs and increased quantity)?
1. 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.
Suppose the government imposes a system of price ceilings in the health care industry as part of an overall health care reform bill.
a) draw a graph of the health care market and show equilibrium price and quantity.
b) assume the government imposes an effective price ceiling in the health care market. Show the price ceiling in your graph. Indicate what will happen to quantity demanded and quantity supplied of health over time ?
c) would a shortage or surplus result ? I llustrate in your graph.
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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Similar questions
- Use the following graph to answer the next three questions. Health of Population A Point A Point D Point B Which point on the graph best represents a country that has a very large health care infrastructure and where an increased quantity of health care would initially deliver almost no marginal benefit? Point E B Point C D Quantity of Medical Care Healtharrow_forwardGraph showing government role in the market for health carearrow_forwardWhat is the opportunitiy cost of having health insurance? What is the opportunity cost of not having health insurance?arrow_forward
- What is the importance of health economics.arrow_forwardWhat is the relationships between economics, legislative changes, and policies and how these relationships are important to the overall delivery of healthcare systems?arrow_forwardExplain how health insurance works and describe the different health insurance plans that are available?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 why health economics is an important tool when it comes to managing health care resources, comparing cost with effectarrow_forward9a Briefly explain what the present value of a health care and preventionarrow_forward
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