Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Chapter 16, Problem 8SPA
To determine
Attaining efficient coverage and the tax payment.
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What Social Determinant of Health is the most important in determining better health and health outcomes?
Jay 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…
What is the opportunity cost of having health insurance? What is the opportunity cost of not having health insurance
Chapter 16 Solutions
Microeconomics (13th Edition)
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 - Prob. 10SPACh. 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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- 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. 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_forwardUse 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_forward
- 8. Agreement and disagreement among economists Suppose that Dmitri, an economist from a research institute in Texas, and Frances, an economist from a university in Massachusetts, are arguing over health Insurance. The following dialogue shows an excerpt from their debate: Frances: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits. Dmitri: 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. Frances: 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 * Despite their differences, with which proposition are two economists chosen at random most likely to agree? Employers should not be restricted from outsourcing work to foreign nations. Business managers can raise profit more easily by reducing costs than by…arrow_forwardWhat 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)?arrow_forwardThere 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_forward
- LA 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_forward1. An article in the Economist observes: "Insurance companies often suspect the only people who buy insurance are the ones most likely to collect." What do economists call the problem that is described in the article? If insurance companies are correct in their suspicion, what are the consequences for the market for insurance? Use health insurance as an example.arrow_forward8. Agreement and disagreement among economists Suppose that Tim, an economist from a business school in Georgia, and Alyssa, an economist from a public television program, are arguing over health insurance. The following dialogue shows an excerpt from their debate: Alyssa: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits. Tim: 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. Alyssa: 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 Despite their differences, with which proposition are two economists chosen at random most likely to agree? O Immigrants receive more in government benefits than they contribute in taxes. O Rent ceilings reduce the quantity and quality of available housing. O Having a…arrow_forward
- 9a Briefly explain what the present value of a health care and preventionarrow_forward8. Agreement and disagreement among economists Suppose that Darnell, an economist from a business school in Georgia, and Eleanor, an economist from a school of industrial relations, are arguing over health insurance. The following dialogue shows an excerpt from their debate: Eleanor: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits. Darnell: 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. Eleanor: 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 Despite their differences, with which proposition are two economists chosen at random most likely to agree? Having a single income tax rate would improve economic performance. Immigrants receive more in government benefits than they contribute in taxes.…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
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