health economics correct answersthe application of economic theories, tools, and concepts of economics as a discipline to the topics of health and healthcare
concerned with issues related to the allocation of scarce resources to improve health, this includes both resource allocation within the e...
ECON 530 - Exam 1
health economics correct answersthe application of economic theories, tools, and concepts of economics as a discipline to the topics of health and healthcare
concerned with issues related to the allocation of scarce resources to improve health, this includes both resource allocation within the economy to the health sector and within the healthcare system to different activities and individuals
adverse selection correct answersa situation often resulting from asymmetric information in which individuals are able to purchase insurance at the rates that are below actuarially fair rates plus loading costs
an event in healthcare whereby one part decides not to reveal the full extent of their risk profile to the other party
a situation in which individuals of different risk types decide whether or not to buy insurance an information problem that is a source of market failure: low-risk individuals want insurance, but it is unavailable to them at a reasonable price
moral hazard correct answersthe possibility of consumers or providers exploiting a benefit system unduly
to the disadvantages of other consumers, providers, or the financing community as a whole
supplier-induced demand correct answersan insurance term that represents the disincentives created by
insurance for individual to take measures that would reduce the amount of care demanded
in healthcare, it is more commonly used to express the additional quantity of healthcare demanded, resulting from a decrease in the net price of care attributable to insurance moral hazard correct answersarises where the attitudes and behavior of a person or organization change once they are covered for potential costs or losses
asymmetric information correct answerssituations in which the parties on the opposite sides of transaction have differing amounts of relevant information doctors have more knowledge and information about medicine than patients/consumers, the individual may not be the best judge of his/her own interests, the doctor acts as an agent of the patients demand
health correct answersa state either of an individual or of a community effected by poverty, level of education, food intake, access to clean water and sanitary and housing conditions the narrowest concept sees it as a measure of the state of the physical body organs a broader concept is the ability of the body as a whole to function
WHO health correct answersa state of physical, mental, and social well-being and not merely the absence of disease or infirmity a more holistic view
sees the health of an individual or community as being concerned not only with physical (and mental) status, but also with social and economic relationships broader interventions, including community empowerment and anti-poverty measures, are necessary to promote health
Health economics correct answersis the branch of economics that studies the healthcare system, attempts to explain the healthcare system so we can better understand it, and recommends ways to improve the healthcare system and increase its efficiency In the market for medical care, patients often rely on physicians for information to make their medical decisions or allow physicians to make these decisions for them. If the physician is an imperfect agent and
is paid fee-for-service this may result in correct answersthe physician recommending unnecessary medical services for financial gain
Which of the factors affect the health of a person?
a. Access to health care
b. Level of education
c. Food intake
d. All of the above correct answersAll of the above
Since the 1960s, medical care spending has been growing faster than the economy measured by the gross domestic product (GDP). Many economists believe this rapid growth in medical care spending is a problem because correct answersgovernment must devote a larger share of its budget to financing medical care, which means it has less money to spend on education, roads, and other public goods we value
Which is true about the healthcare expenditure across the globe?
a. People living in rich countries are generally healthier. Therefore, they do not spend as much money as the poorer countries
b. Poorer countries spend more money on healthcare than richer countries
c. More populated countries spend less in healthcare in per capita than less populated countries
d. None of the above correct answersMore populated countries spend less in healthcare in per capita than less populated countries
Health economic encompasses correct answerssupply and demand for health care, allocation of health care resources, and the determination of health care resources
Joe Smith is a health 24 year old that expects to incur healthcare costs of less than $500 in a typical year. The annual premium that he must pay for health insurance is $2,000, which is the same premium that an
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