An empirically testable hypothesis for additional health care expenditure as an investment rather than as an expense is: Group of answer choices If an increase in health care expenditure today results in an a rise in health care stock prices, then health care expenditure has an investment effect. If an increase in health care expenditure today results in worse health outcomes today, then health care expenditure has an investment effect. If an increase in health care expenditure today results in a more competitive health care market tomorrow, then health care expenditure has an investment effect. If an increase in health care expenditure today results in an increase in productivity tomorrow, then health careexpenditure has an investment

An empirically testable hypothesis for additional health care expenditure as an investment rather than as an expense is: Group of answer choices If an increase in health care expenditure today results in an a rise in health care stock prices, then health care expenditure has an investment effect. If an increase in health care expenditure today results in worse health outcomes today, then health care expenditure has an investment effect. If an increase in health care expenditure today results in a more competitive health care market tomorrow, then health care expenditure has an investment effect. If an increase in health care expenditure today results in an increase in productivity tomorrow, then health careexpenditure has an investment

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 4PA

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7. Oster (2020) “Health Recommendations and Selection in Health Behaviors” which found that spurious links between health behaviours and good health outcomes can be self-reinforcing if individuals who engage follow the recommendation also engage in other positive health behaviours. a) Briefly describe in your own (layperson) words what this implies about false positive findings and null findings. b) Can you think of an example where the opposite is true? That is, individuals who follow the recommendation also engage in negative health behaviors. c) Suppose a medical examiner (coroner) is deciding the cause of death of a recently deceased patient. The patient overdosed and is unclear whether the overdose was accidental or intentional (i.e., suicide). The medical examiner remembers hearing on the news that morning that suicides have been rising in recent years. What does this imply about the likely cause of death the medical examiner will record on the death certificate? What does this…
Please paraphrase this answer with your own words (not AI) making sure it correctly answers this question: Explain why the percentage of all money paid to hospitals “out of pocket” is much smaller than the percentage of money paid out of pocket for all health care goods and services. Compared to all healthcare goods and services, the percentage paid out-of-pocket for hospital care is lower because it costs more than other types, but it's possible that the actual amount paid for hospital care out of pocket will still be substantial even if only a smaller percentage of costs are covered. Similarly, when it comes down to different healthcare options available out there, hospitals tend to have a greater sense of urgency attached which makes them an essential component in treating diseases, thus making sure that the financial aspect does not hinder the patient's decision-making process while seeking medical aid. Insurance policies that cover hospitals are typically more thorough than…
4 As an economist, please consider the extent to which the increasing enrollment in government-sponsored health care (Medicaid enrollment increased from 54.1 million persons in 2012 to 80.0 million in 2022) justifies bans on activities or products that are found to endanger public health. Consider, among other things, such economic concerns as distribution effects and moral hazard.
Do you think Canada's universal health care program can alleviate problems caused by moral hazard and adverse selection in the private insurance markets? Why or why not? John's utility curve over total wealth is given by U(W) =VW (i.e. square root of W). Suppose that he has a 50% chance of being healthy. If he is healthy, he gets all his wealth-$10,000. If he becomes sick, he only has $3,600 remaining after medical expenditures. Calculate John's wealth and utility when he does and does not get sick, his expected utility, expected wealth, and his expected loss. Now he has the option of buying health insurance Calculate the maximum amount John would be willing to pay to fully insure against the cost of the sickness. How much is the actuarially fair and risk premium? Suppose that society consists of large, equal numbers of identical male and identical female consumers. Male consumers are similar to John; female consumers differ only in that they face a 25% probability of being sick, but…
51.If, over the years, the standard night in a hospital has risen in price from $200 a night to $1000 a night but now also includes amenities, then economists insist that the price A)has risen $800 over that period. B)has definitely risen but by less than $800 over that period. C)has definitely risen and by more than $800 over that period. D)may have risen or fallen depending on the value of the amenities. 52.Effective AIDS drugs did not exist in the early 1980s. When they became available they were very expensive. When people use these facts to say that the price of AIDS drugs has increased economists generally A)agree. B)suggest they are confusing price increases with quality increases. C)note that the drugs are not as effective as advertised. D)stay out of this discussion. 53.Effective AIDS drugs did not exist in the early 1980s. When they became available they were very expensive. When people use these facts to say that the price of AIDS drugs has increased…
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Exercise 2. Describe the difference between allocative efficiency and productive efficiency in theproduction of health. Assume researchers prove beyond a shadow of doubt that allocative efficiencyand productive efficiency are both causal mechanisms for the production of health. Should theUnited States spend more money educating its citizens if the goal is to become the healthiest nationin the world? [
Suppose that your utility function over health care (h) and other goods (c) is given by U(h, c) and that you have a fixed income of $100. (Assume that the indifference curves of your utility function bear the usual convex shape.) Each year, you choose h and c to maximize your utility subject to a budget constraint: phh+pcc=Ywhere ph is the price of health care, pc is the price of other goods, and Y is your income. In year 1, the price of health care is $1, while the price of other goods is $2. At these prices, you demand 30 units of health care and 35 units of other goods. In year 2, your utility function and your income do not change, but prices do. Health care becomes more expensive at $1.50, while other goods become cheaper at $1.50. At these prices, you demand 20 units of health care. a. Assuming you spend all your income in year 2, how many units of other goods do you buy?b. Draw a graph with your demand for health care on the horizontal axis and your demand for other goods on the…
Show how a consumer would choose between medical care and health(y) behavior activities using the graphical representation of the consumer choice model (assume that “amounts” of healthy behavior have “costs” or prices). How might health education affect this choice? What if medical care becomes more productive (more health benefit per “unit” of medical care consumed)? What if medical care becomes cheaper? Explain in terms of the model (i.e. what does it change in the model).