Health Economics
14th Edition
ISBN: 9781137029966
Author: Jay Bhattacharya
Publisher: SPRINGER NATURE CUSTOMER SERVICE
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Question
Chapter 5, Problem 7E
To determine
Salary of the physicians and the salary of the secretary.
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- There have been shifts in policy regarding the regulation of managed care organizations intended to protect the consumer from rationed care. Are current regulations working or are they adding to already too much regulation and associated cost of providing healthcare in the U.S.?arrow_forwardSection 2.4 lists six trends in the US healthcare system. Which of these trends can best be attributable, in part, to the trend of rapid technological change? Group of answer choices Steady increase in the number of uninsured Americans Slower growth of the inpatient sector The shrinking share of direct consumer payments The growing share of direct consumer paymentsarrow_forwardDemand studies in health care have provided estimates of both income and price elasticity. Estimates of income elasticity are usually above +1.0. Estimates of price elasticity typically range between -0.1 and -.75 (with hospital services at the lower end and elective services at the upper end). What information do these estimates convey? What does the price elasticity of demand estimates imply for government policymakers, insurance companies, and medical providers' decisions? What does the income elasticity of demand estimates imply for government policymakers, insurance companies, and medical providers' decisions?arrow_forward
- The price elasticity of demand for health care has been estimated to be −0.2. Characterize this demand as price elastic, unit price elastic, or price inelastic. The text argues that the greater the importance of an item in consumer budgets, the greater its elasticity. Health-care costs account for a relatively large share of household budgets. How could the price elasticity of demand for health care be such a small number?arrow_forwardWhat is the impact of aging societies like Japan and some other European countries on the demand for health services?arrow_forwardHow does the law of supply and demand apply to the growing success of the urgent care medical market in the United States?arrow_forward
- 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 -0.3arrow_forwardFor a person who previously had no insurance and received an insurance plan paying for 80 percent of all types of medical care, what increase in use would you expect for hospital care, dental care, and physician services, on average?arrow_forwardUse supply and demand concepts to explain why the American Medical Association finds it beneficial to require more strict standards for entrance to medical schoolsarrow_forward
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