Answered: People make decisions by comparing…

People make decisions by comparing marginal benefits with marginal costs. An optimaldecision requires that marginal benefits are above below or equal to marginal costs?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter3: Analyzing Medical Care Markets

Section: Chapter Questions

Problem 3QAP

See similar textbooks

Related questions

Q: The 2010 health reform law fails to provide universal health insurance coverage. T or F?

A: The 2010 Health Reform Law was named as Affordable Care Act.

Q: Create one “pro” paragraph in support of the issue and one “con” paragraph against the issue about…

A: Health insurance is a type of insurance that pays for medical costs incurred as a result of an…

Q: Could the buyer even have a right to compensation, even if the buyer in the case had not submitted…

A: CISG-AC is the International Sales Contract Advisory Council whose role is to govern the…

Q: Why might nudges be particularly useful and effective in changing decisions related to health care?

A: Nudge theory is a concept in which positive reinforcement and suggestions can help in influencing or…

Q: The decline in hospital days per 10,000 population between 1980 and 2007 reflects: A. An…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first…

Q: Which plan is more economically viable? • Traditional Plan: Patients visit each service provider.…

A: Meaning of Traditional Economy: The term traditional economy refers to the situation under which…

Q: Suggest a relevant government policy that would yield the efficient outcome and carefully explain…

A: Some relevant government policy that would yield the efficient outcome that government plays in…

Q: What is market failure? What are the major reasons that a free, unregulated market in medical care…

A: The economic condition described by the inefficient distribution of products and services in the…

Q: Build and secure a market based economic intervention to address the social determinants of health.

A: Market based economic intervention for building health determinants would be to increase medical…

Q: discuss the dominant

A: Below given some dominant cost components of health care,

Q: dural

A: Procedural fairness is fairness in the procedures being followed when arriving at any administrative…

Q: The government wants to regulate health insurance companies requiring them to provide insurance…

A: Insurance is a form of contract that insures the insured person against losses under uncertain…

Q: Rising health care costs O stretch government budgets, especially as the proportion of the…

A: Disclaimer “Since you have asked multiple questions, we will solve the first question for you. If…

Q: D. Verbally explain to the subcommittee members what factors might cause th public health care…

A: Public care health system to grow, healthcare quality and in the supportive visionary leadership…

Q: 1. T/F Price sensitivity varies accordingly to the type of medical service.

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Why would payers want to add shared savings components to PMPM or enhanced FFS payments to primary…

A: FFS is the medical care installment model where doctors and clinicians are paid in light of the…

Q: A competitive labor market offers traineeship programs. During the training, employees of type 1…

A: The equilibrium compensation and work level are resolved where the market demand for labor rises to…

Q: Suppose there are two types of persons: high-ability and low-ability. Firms wish to use education as…

A: In order for a low-ability worker to pursue education, it must be that the income earned must…

Q: Define information asymmetry and explain why it matters for economicdecision making

A: It is a condition where people have imperfect knowledge. It occurs where one party has had different…

Q: Consider Ron’s demand for after school care for his children. The marginal benefit Ron receives for…

A: Given that; Ron’s demand for after school care for his children. After school childcare(hours per…

Q: As most countries, including Lesotho, are dealing with the second wave of coronavirus, policymakers…

A: The covid 19 pandemic has made some governments to impose lockdown shuttering businesses and…

Q: Discuss the short-term and long-term implications of an ill-health working environment.

A: Working environment plays a very important role in the functioning of a firm. It refers to the…

Q: Discuss how the public provision of education can lead to less consumption of education than before…

A: Public good implies a particular role for government. Economists define a public good as satisfying…

Q: Demand for health care is not Downward sloping Sensitive to the price of health care…

A: Price elasticity of demand refers to the responsiveness of change in quantity demand due to change…

Q: Suppose you’re trying to get your friends to go todinner with you. Would it be wiser to frame…

A: Economics refer to the study of allocation of scarce resources in the most optimal way in the…

Q: Explain Benefits and Flaws of Payback Screening?

A: The objective of payback screening is to calculate the number of years it takes to recover the…

Q: What kinds of issues arise when researchers attempt to define and assess family violence?

A: Child abuse and adult abuse occurring between the members of family or adult intimate partners is…

Q: Why is media is relevant to glovalization?

A: Globalization refers to the approach to open the economy and to deal with the rest of the world by…

Q: A competitive labor market offers traineeship programs. During the training, employees of type 1…

A: The equilibrium compensation and work level are resolved where the market demand for labor rises to…

Q: Which option is not true on the price of health care? In general it does not affect ones…

A: Health economics is a branch of economics, which studies the issues related to the production and…

Q: What is the opportunitiy cost of having health insurance? What is the opportunity cost of not having…

A: The potential gains that an individual, investor, or organisation misses out on when choosing one…

Q: Ronald Coase in his classic October 1960 article “The Problem of Social Cost” (Journal of Law and…

A: Collective ownership means ownership of something by a group of people which often ends up having…

Q: How would functionalists, conflict theorists and symbolic interactionists suggest that health care…

A: According to the functionalists, good health and the effective medical care are the essentials for…

Q: Explain the impact of education on health.

A: The education is the gaining of basic knowledge which is necessary for a basic standard of living.…

Q: Make the business case why healthcare providers should advocate for expansion of insurance coverage…

A: Overview: Number of poor people who are received the coverage of health insurance policy is less…

Concept explainers

Market Equilibrium and Failure

The economy of a country or any place depends on the market demand and market supply of goods and services.

Question

People make decisions by comparing marginal benefits with marginal costs. An optimal
decision requires that marginal benefits are above below or equal to marginal costs?

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

Build and secure a market based economic intervention to address the social determinants of health.
Make the business case why healthcare providers should advocate for expansion of insurance coverage for the poor
Research has found that poor people in rural, developing societies have many children, even when they have ready access to contraception. Why?
The 2010 health reform law fails to provide universal health insurance coverage. T or F?
Employer-provided private health insurance in the United States has resulted in: A. incentives that encourage the overuse of health care.B. incentives that discourage the use of health care, and overall poorer health.C. lower costs of health care as providers better achieve economies of scale.D. comprehensive coverage of the U.S. population, with few lacking access to adequate health care.
relationship between overreaction and availability bias?
While the individual mandate clause in the Affordable Care Act (also known as, Obamacare) was still in effect, which market failure in the market for health insurance did it help to reduce? Group of answer choices A.) Increasing Returns to Scale. B.) Moral Hazard. C.) Adverse Selection. D.) Barriers to Entry. E.) Externalities.
Draw a demand and supply diagram and use it to explain the effects of occupational licensure of physicians on the quantity, quality of care, and income of physicians in the market for physician services.
What benefit does the PPO provide? Select all that apply. covers out of network doctors and specialists freedom to see more doctors requires referrals provides primary care physician only covers in network providers
Why is media is relevant to glovalization?
Suppose there are two types of persons: high-ability and low-ability. A particular diploma costs a high-ability person $8,000 and costs a low-ability person $20,000. Firms wish to use education as a screening device where they intend to pay $25,000 to workers without a diploma and $ K to those with a diploma. In what range must K be to make this an effective screening device?
Which of the following best describes the moral hazard problem associated with means-tested redistribution programs? A.People may change their behavior to be eligible for the program. B.Eligible people may not sign up for the program due to negative stigma. C.Programs are costly for society. D.Only high risk individuals sign up for programs.