Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 5, Problem 5.4.8PA
Subpart (a):
To determine
Restraining the growth of Medicare spending.
Subpart (b):
To determine
Restraining the growth of Medicare spending.
Subpart (c):
To determine
Restraining the growth of Medicare spending.
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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.)
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Briefly explain the situation for both consumers and producers (i.e. health care providers).
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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.…
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If 192 million people are insured, then the price elasticity of demand for health insurance is (Enter a numeric
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Chapter 5 Solutions
Macroeconomics (7th Edition)
Ch. 5 - Prob. 5.1.1RQCh. 5 - Prob. 5.1.2RQCh. 5 - Prob. 5.1.3RQCh. 5 - Prob. 5.1.4PACh. 5 - Prob. 5.1.5PACh. 5 - Prob. 5.1.6PACh. 5 - Prob. 5.2.1RQCh. 5 - Prob. 5.2.2RQCh. 5 - Prob. 5.2.3RQCh. 5 - Prob. 5.2.4RQ
Ch. 5 - Prob. 5.2.5PACh. 5 - Prob. 5.2.6PACh. 5 - Prob. 5.2.7PACh. 5 - Prob. 5.2.8PACh. 5 - Prob. 5.2.9PACh. 5 - Prob. 5.3.1RQCh. 5 - Prob. 5.3.2RQCh. 5 - Prob. 5.3.3RQCh. 5 - Prob. 5.3.4RQCh. 5 - Prob. 5.3.5PACh. 5 - Prob. 5.3.6PACh. 5 - Prob. 5.3.7PACh. 5 - Prob. 5.3.8PACh. 5 - Prob. 5.3.9PACh. 5 - Prob. 5.3.10PACh. 5 - Prob. 5.3.11PACh. 5 - Prob. 5.3.12PACh. 5 - Prob. 5.3.13PACh. 5 - Prob. 5.3.14PACh. 5 - Prob. 5.3.15PACh. 5 - Prob. 5.4.1RQCh. 5 - Prob. 5.4.2RQCh. 5 - Prob. 5.4.3RQCh. 5 - Prob. 5.4.4RQCh. 5 - Prob. 5.4.5RQCh. 5 - Prob. 5.4.6PACh. 5 - Prob. 5.4.7PACh. 5 - Prob. 5.4.8PACh. 5 - Prob. 5.4.9PACh. 5 - Prob. 5.4.10PACh. 5 - Prob. 5.4.11PACh. 5 - Prob. 5.4.12PACh. 5 - Prob. 5.4.13PACh. 5 - Prob. 5.4.14PACh. 5 - Prob. 5.1CTE
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Similar questions
- Briefly describe the main features of Medicare and Medicaid, indicating how each is financedarrow_forwardSuppose that Edison, an economist from a college in Pennsylvania, and Hilary, another economist from a nonprofit institution in the Midwest, are both guests on a popular science podcast. The host of the podcast is facilitating their debate over health insurance. The following dialogue represents a portion of the transcript of their discussion: Hilary: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits. Edison: 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. Hilary: 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? Minimum wage laws do more to harm low-skilled workers than help them. Tariffs…arrow_forwardBriefly discuss at least one of the outcomes of the 2008 Oregon Experiement? Briefly discuss why Medicaid payments to providers are lower than those paid through private insurers.arrow_forward
- which option is correct about Medicare and Medicaid? Medicaid is a federally-sponsored program while Medicare is sponsored with states and federal governments The health care cost of Medicare enrollees in the last two years of their life is very small Medicaid is less costly than Medicare Under the Affordable Care Act, Medicare was expanded at the cost of contracting Medicaidarrow_forwardWhat would happen if, in order to provide lower cost healthcare, the government decided to set a price ceiling (Pmax) in the health insurance market?arrow_forwardBriefly discuss why Medicaid payments to providers are lower than those paid through private insurers.arrow_forward
- According to Health Economists, “more protection does not always leadto less disease”; using the concept of prevalence elasticity of demand for selfprotection explain with an aid of a diagram how this might be the case.arrow_forwardWhy would increased spending as a percentage of GDP on, say, household appliances or education in a particular economy be regarded as economically desirable? Why, then, is there so much concern about rising expenditures as a percentage of GDP on health care?arrow_forwardIs Canadian government spending on health care a direct expenditure or a transfer payment? How can you tell?arrow_forward
- Briefly discuss the "free rider" concept as applied to health care.arrow_forwardBriefly discuss the demand and supply factors that contribute to rising health costs. Specify how (a ) asymmetric information, ( b) fee-for-service payments, ( c) defensive medicine, and ( d) medical ethics might cause health care costs to rise.arrow_forward. Has Medicaid expansion improved health outcomes to eligible populations? Briefly discuss your answerarrow_forward
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