Health Economics and Policy
7th Edition
ISBN: 9781337106757
Author: James W. Henderson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 7QAP
To determine
To explain the
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The UN Committee on Economic, Social, and Cultural Rights (CESCR) is charged with interpreting the International Covenant on Economic, Social, and Cultural Rights (ICESR). In 2000 the Committee released General Comment 14, “The Right to the Highest Attainable Standard of Health”. The General Comment is important for advancing our understanding of a right to health under international law because it: (choose one)
A) Sets out what has become known as the “3AQ model” addressing the conditions for health on the basis of Availability, Accessibility, Acceptability, and Quality.
B) Creates new, specific obligations with respect to the delivery health care services that are binding on all countries of the world
C) Makes it clear that the absence of a right to health in the Canadian Charter or Rights and Freedoms means that Canada is in clear violation of its obligations under the ICESR.
D) Offers an account of a right to health that has been used by health advocates around the world
E) A, B…
Frustration over US pharmaceutical pricing has led researchers to develop frameworks for evaluation that can be used by any purchaser or patient making complex drug choices. One of the most prominent, the Institute for Clinical and Economic Review, uses clinical trial data and compares value -- per quality adjusted life year (QALY) -- under actual market pricing and other possible references prices for specific drugs.
Do you think $/QALY is an appropriate metric for evaluating the value of new drugs?
In 1989 the Chrysler Corporation released figures showing that its employee health care costs were $5,970 per employee and $700 per vehicle produced. According to the report, its foreign competitors fared much better. Health care costs for automobile companies averaged $375 in France, $337 in Germany, and $246 in Japan, placing Chrysler at a competitive disadvantage. Is there anything wrong with this conclusion? What are the microeconomic arguments and the macroeconomic arguments as they relate to this issue?
Chapter 14 Solutions
Health Economics and Policy
Knowledge Booster
Similar questions
- Don't use Aiarrow_forwardAssume a market basket consisting of gasoline (10 gallons), milk (3 gallons), ground beef (6 pounds), and men’s underwear (1 pack). While it may seem strange, former Federal Reserve Chairman Alan Greenspace often monitored sales of men’s underwear as a broader indicator of economic health. Calculate the cost of the market basket given current prices for gasoline ($3.25/gal), milk ($4.10/gal), ground beef ($3.59/pound), and men’s underwear ($9.49/pack). The cost of the market basket one year ago was $71.16. Calculate the year-over-year inflation rate.arrow_forwardQuestions 1 Illustrate the trade-off between medical staff. principles optimal administrators and Explain involved in obtaining situation. How would this situation be affected by an increase in the pay of doctors and nurses? the economic an What encountered problems in might determining be this solution in practical terms?arrow_forward
- The National Health Service (NHS) in the UK was founded in 1948 and was the first state-run free health service in the world. It originated at a time of national euphoria following victory in World War II, which generated a sense of confidence and solidarity among politicians and public. In particular it was felt that class distinctions were finally disappearing. The extensive rationing of products, both during and after the war, played a big part. Not only did this result in queuing for goods by rich and poor alike, but it gave the government a sense that state control of distribution was not only possible but in many cases desirable. The basic objective was to provide all people with free medical, dental and nursing care. It was a highly ambitious scheme that rested on various premises that have since proved flawed. These were: 1 The demand for health care was finite; it was assumed that some given amount of expenditure would satisfy all of the nation’s health wants. 2 Health care…arrow_forwardSuppose that Elaine’s demand for doctor visits per year is given by the equation: P = 250 – 20Q, where Q is the number of doctor visits and P is the price. The marginal cost of providing this service is fixed at $130 per patient. What is the efficient level of visits per year? What would be the total cost to provide the efficient level of visits? On a supply/demand graph, illustrate this situation; label the efficient levels from part (a). If Elaine obtains insurance with no deductible and a copayment of $10 per visit, how many times would she visit the doctor per year? In total, how much does Elaine pay out of pocket for her visits and how much does the insurer have to pay? Calculate the deadweight loss resulting from the insurance policy and show this region on your graph. What happens to the size of the deadweight loss as the copayment increases? Briefly explain why the insurance policy can induce moral hazard.arrow_forwardThe stated premise behind the production function for health is that medical care, when combined with other inputs and a person's own time, produces good health. What is the marginal contribution of medical care to the production of health in the United States? Will spending more money on medical care improve the health of Americans, or is there another strategy that would work better? How would your answer change if you were studying health in a less-developed country?arrow_forward
- Journalist: To reconcile the need for profits sufficient to support new drug with the moral imperative to provide medicines to those who most need them but can not afford them, some pharmaceutical companies feel justified in selling a drug in rich nations at one price and in poor nations at a much lower price. But this practice is unjustified. A nation with a low average income may still have a substantial middle class better able to pay for new drugs than are many of the poorer citizens of an overall wealthier nation. Which one of the following principles, if valid, help to support the journalist's reasoning? a. People who are ill deserve more consideration than do healthy people, regardless of their relative socioeconomic positions. b. Whether one deserves special consideration depends on one's needs rather than on the characteristics of the society to which one belongs. c. Wealthier institutions have an obligation to expend at least some of their resources to assist those incapable…arrow_forwardAccording to data from Yelp, more than 55 percent of the 132,500 businesses listed on the site that closed during the pandemic will remain shuttered permanently. Although government relief bought some companies time, businesses that are now closed will likely remain that way for the long term. Restaurants account for the greatest share of permanent and temporary closures, followed closely by retailers and then beauty salons and spas. “Businesses are needing to decide, ‘Do I renew my lease on my space for another year?’ It is really hard to make a one-year commitment to paying rent when businesses are closing down for the second time and there’s no end in sight to this virus,” said Michael Stepner, a postdoctoral researcher at Harvard University. “The longer these temporary closings go on, the more of them will turn permanent.” States that depend heavily on tourism like Hawaii and Nevada have experienced the most closures per capita. As businesses close across the country, it becomes…arrow_forwardDescribe key points (with clear justification) that you would use to encourage a cohort of farmers and a cohort of employers of several electricity distribution companies to join an appropriate health insurance scheme.arrow_forward
- interest). At what age is the rate of disease development the highest? Source: Adapted from P. Coleman et al., “Endemic Stability―A Veterinary Idea Applied to Public Health," The Lancet 357 (2001): 1284–86. 19. If C(x) is the cost of producing x units of a commodity, then the average cost per unit is c(x) = C(x)/x. The marginal cost is the rate of change of the cost with respect to the number of items produced, that is, the derivative C'(x). (a) Show that if the average cost is a minimum, then the marginal cost equals the average cost. (b) If C(x) = 16,000 + 200x + 4x³/2, in dollars, find (i) the cost, average cost, and marginal cost at a produc- tion level of 1000 units; (ii) the production level that will minimize the average cost; and (iii) the minimum average cost. 20. If R(x) is the revenue that a company receives when it sells x units of a product, then the marginal revenue function is the derivative R'(x). The profit function isarrow_forwardDuring the course of a pandemic, does a company that is considering outsourcing face any unique risks with regard to the industry or its service providers?arrow_forwardExpansion of the Michigan Medicaid program in 2014 is credited with reducing both the number of uninsured in the state and the burden of uncompensated care borne by hospitals reducing the number of uninsured in the state, but increasing the burden of uncompensated care borne by hospitals increasing the number of uninsured in the state, but reducing the burden of uncompensated care borne by hospitals increasing both the number of uninsured in the state and the burden of uncompensated care borne by hospitalsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
