Indicate whether the statement is true or false, and justify your answer.In the RAND HIE, the arc elasticity of demand for inpatient care was larger (in absolute value) than the arc elasticity of demand for outpatient care.

Indicate whether the statement is true or false, and justify your answer.In the RAND HIE, the arc elasticity of demand for inpatient care was larger (in absolute value) than the arc elasticity of demand for outpatient care.

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter5: Demand For Health And Medical Care

Section: Chapter Questions

Problem 9QAP

See similar textbooks

Related questions

Q: Indicate whether the statement is true or false, and justify your answer.Bismarck nations tend to…

A: The given statement is true.

Q: Indicate whether each statement is true or false, and justify your answer.Medical experts are ideal…

A: In the Healthy technology Assessment (HTA) more specifically is involved with the evaluation of an…

Q: Indicate whether the statement is true or false, and justify your answer. Unlike with most types of…

A: Healthcare is different from other services because the definition is not clear. Every customer in…

Q: There is a consensus among health economists that socioeconomic status (SES) has a major impact on…

A: TRUE People with a higher socio economic status reportedly have better health, higher life…

Q: Indicate whether the statement is true or false, and justify your answer.The ratio of a disease’s…

A: Prevalence is a statistical term referring to the number of cases of a disease that occur in a…

Q: Indicate whether the statement is true or false, and justify your answer.Suppose that a state grants…

A: Medicaid benefits those who are unable to afford the medical cost on their own. The Medicare…

Q: Indicate whether the statement is true or false, and justify your answer.Public health models that…

A: A public health model consist of many disciplines, health education, and welfare projects. In other…

Q: Indicate whether the statement is true or false, and justify your answer.The NHS internal market…

A: True, because such negotiation contracts were intended to help make hospital cheaper and more…

Q: Indicate whether the statement is true or false, and justify your answer.Health insurance coverage…

A: True, health insurance coverage is mainly financed through payroll and other taxes, because…

Q: Indicate whether each statement is true or false, and justify your answer.High health care…

A: True, because these factors could explain that certain regions spend more on health care but do not…

Q: Indicate whether the statement is true or false, and justify your answer.In recent years, each…

A: Answer - Medicare Tax Receipts - It is a payroll tax. It is an employee and employer tax, which…

Q: Faustian health economics. Consider Figure 11.10, which shows the locus of feasible contracts for…

A: 1. In the Southeast area of the graph, the utility is the highest. But the problem with the…

Q: While it may seem intuitively obvious that health expenditures will increase as a population ages –…

A: Since there is a rise in life expectancy in the nation, there will be a rise in the per capita…

Q: Using inequity in access to health care as your reference point, explain the economic significance…

A: Health care is considered to be an important sector that provides a major contribution to the…

Q: Many consider the profit motive of physicians and hospitals a moral hazard, and if patient care…

A: Moral Hazards: Moral hazards refers to the situation where a person’s risk is borne by another…

Q: Indicate whether the statement is true or false, and justify your answer.In a typical Beveridge…

A: In a typical Beveridge system, patients must get a transfer from a general practitioner before they…

Q: Which type of health care system is largely owned and run by the government? Beveridge Model…

A: 1 Option A Beveridge model under this the government provides health care benefits to all from the…

Q: Indicate whether the statement is true or false, and justify your answer.In Canada, unlike in the…

A: False, because Currie in 2003 showed that the gap does make wider in Canada after age 10.

Q: Indicate whether each statement is true or false, and justify your answer.A country operating below…

A: In this case, a country that is below its own health production frontier is supposed to be…

Q: Indicate whether the statement is true or false, and justify your answer.There were more hospitals…

A: True, because the part of this growth was prompted by the Hill – Burton act of 1946.

Q: Indicate whether the statement is true or false, and justify your answer. Aging shifts the marginal…

A: If aging occurs in an economy, then the depreciation rate of health increases this causes movement…

Q: (A positive) prevalence elasticity (of demand for self-protection) implies that when the prevalence…

A: Elasticity of demand refer to the responsiveness of the percentage change in quantity demanded to…

Q: If physicians' income decreases, how may it affect the physicians' role as the patients' agent?

A: Decrease in physician income can be because of many different reasons such as rise in more number of…

Q: Indicate whether the statement is true or false, and justify your answer.The RAND HIE found that…

A: The people assigned to be free health plan likely to frequently visit the hospital and also were…

Q: One major premise of the Rothschild–Stiglitz model is that there is a perfectly competitive market…

A: Rothschild-Stiglitz model assumes that in perfect competitive market, sellers have every…

Q: Indicate whether each statement is true or false, and justify your answer.Cost–benefit analysis…

A: Cost-benefit analysis (CBA) is used as medium for evaluating the economic efficiency of suggested…

Q: Indicate whether the statement is true or false, and justify your answer.The RAND study was…

A: The RAND study helps to ensure the groups facing various prices were statistically equivalent.…

Q: Indicate whether each statement is true or false, and justify your answer.If health disparities…

A: The variations in income levels or priorities for unhealthy habits of the sub-populations of a…

Q: What are three detailed reasons why healthcare has negative macroeconomic implications in the…

A: Macroeconomics is a branch of economics concerned with the large-scale functioning of an economy.…

Q: Indicate whether the statement is true or false, and justify your answer.To date, no major health…

A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…

Q: Indicate whether each statement is true or false, and justify your answer.The Dartmouth Atlas…

A: The Dartmouth Atlas results are proof that, health is easier and or cheaper to produce in some…

Q: Indicate whether the statement is true or false, and justify your answer.If a disease is shown to…

A: Elasticity refers to the responsiveness of one variable to changes in another variable; given that…

Q: Indicate whether each statement is true or false, and justify your answer.One reason why total…

A: Health expenditures include various expenses like medical expenses, insurance expenses, etc. It also…

Q: Indicate whether the statement is true or false, and justify your answer.Health status earlier in…

A: Answer: True, health status earlier in life is indeed a good predictor of wealth later in life.…

Q: Suppose Jay has been experiencing back pain, and has four options for treatment. (Table 14.6)…

A: Ic shows the combination of two goods showing various quantities.

Q: Indicate whether the statement is true or false, and justify your answer.A primary cause of…

A: False

Q: Indicate whether each statement is true or false, and justify your answer.Health systems focused on…

A: The cost of healthcare is comparatively high in country U as compared to other countries owing to…

Q: Assume throughout that an individual's demand curve for doctors visits is represented by Q = 50 – P.…

A: Market refers to the place where the buyers and sellers exchange goods and services in the market.…

Q: Indicate whether the statement is true or false, and justify your answer.Unlike in the US, there are…

A: False

Q: Indicate whether each statement is true or false, and justify your answer.There are no out-of-pocket…

A: TRUE.

Q: Indicate whether the statement is true or false, and justify your answer.Even though health…

A: Health insurance covers medical expenses that can occur due to illness or injury. It can also…

Q: Which of the following hypotheses argues that a third variable, "patient", determines both health…

A: To find : Which hypothesis determines both health and wealth.

Q: Indicate whether the statement is true or false, and justify your answer.One hundred percent of…

A: The Beveridge Model is a model of the healthcare system in which healthcare is provided to the…

Q: Suppose that population ageing in a given country is due entirely to an increase in life expectancy…

A: According to Zweife et al. the health expenditure tends to increase with increase in the age of the…

Q: Indicate whether the statement is true or false, and justify your answer.The thrifty phenotype…

A: The "thrifty phenotype" hypothesis proposes that poor health in adulthood is caused by economic…

Q: Indicate whether the statement is true or false, and justify your answer.The take-up rate of health…

A: The health insurance would result in the coverage of medical expenses for the individuals by a fixed…

Q: Indicate whether the statement is true or false, and justify your answer.Reducing mortality from one…

A: Mortality risk is the risk of death, which is used to indicate the mortality rate or the number of…

Concept explainers

Medical Care Systems

In this modern world, good health is one of the most crucial assets for society. Maintaining good health in the present environment is a big task for both medical care providers and sick persons. It is the high cost of medical care services that makes the whole system more complex. To simplify the medical care system, various entities, such as insurance companies, the government, and investors have become a part of it. In broader terms, the medical care system is the health care system in which various peoples, institutions, organizations, and other resources provide healthcare services to meet the desired health needs of target populations.

Question

Indicate whether the statement is true or false, and justify your answer.
In the RAND HIE, the arc elasticity of demand for inpatient care was larger (in absolute value) than the arc elasticity of demand for outpatient care.

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Indicate whether the statement is true or false, and justify your answer. Unlike with most types of goods, deriving a demand curve for health care is quite simple because people rarely skimp on health care.
Indicate whether the statement is true or false, and justify your answer.A primary cause of increasing uninsurance in the US over the past decade is that more employers are deciding to stop providing health insurance coverage entirely.
Indicate whether the statement is true or false, and justify your answer.Disproportionate spending on end-of-life care is never clinically justifiable.
Indicate whether each statement is true or false, and justify your answer.The goal of health policy is to maximize health, wealth, and equity.
Indicate whether the statement is true, false, or unclear, and justify your answer.When the price elasticity of demand for health care is zero, health insurance coverage induces no moral hazard.
Indicate whether the statement is true or false, and justify your answer.Nearly half of expenditures on health care in the US are government financed.
Indicate whether the statement is true or false, and justify your answer.Compared with doctors who are paid on a fee-for-service basis by health insurers, doctors who are paid on a capitated (per-patient) basis have incentives to provide too much care.
All other things equal, if an individual earning $100,000 per year has an income elasticity of demand for health care of 0.4, if her salary increases by 10%, her expenditures on health care will increase by $4,000. True False
Demand 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?
Suppose you are collecting data from a country like Japan where the government sets the price of healthcare. Each prefecture in Japan has a different set of prices (for example, Tokyo has higher prices than rural Hokkaido). Data for 1999 are displayed in the table below. Region Outpatient Visits per Month Price per Visit Tokyo 1.25 25 Hokkaido 1.75 15 (4 points) What is the arc price elasticity of demand for health care consumers in Japan (using only these data)? (4 points) Suppose that incomes are generally much higher in Tokyo than Hokkaido. Is your answer to the last question an overestimate or underestimate of price elasticity? Justify your answer. (c) (4 points) Using your estimated elasticity, what would the demand for health care be if the price in Tokyo were raised to 30 per visit? What would the demand in Hokkaido be if the price were lowered to 5 per visit?
Suppose you have two persons, one with more elastic demand for medical care than the other. If they both obtain identical health insurance coverage (or both have their % of costs paid by insurance increased), whose demand will be affected most? Given what you know about relative demand for MC for well vs. ill individuals, more educated vs. less educated persons, and wealthy vs. less wealthy individuals, which of each pair will have the greatest increase in demand under health insurance?
Indicate whether each statement is true or false, and justify your answer.Medical experts are ideal candidates for providing estimates of the quality weights associated with various health states.