EBK ECONOMICS
13th Edition
ISBN: 8220106799642
Author: PARKIN
Publisher: PEARSON
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Question
Chapter 16, Problem 7SPA
To determine
The quantity of families insured, premium, and the coverage efficiency.
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What is the opportunity cost of having health insurance? What is the opportunity cost of not having health insurance
7) The graph below depicts the social loss from the existence of health insurance in the presence of moral
hazard.
Price
Demand curve with partial coinsurance
Quantity
a. What is the cause of the social loss? Briefly explain.
b. Why do we have health insurance if social loss is created as a result of health insurance? (
Social loss
Jay Bhattacharya and M. Kate Bundorf of Stanford University have found evidence that people who are obese and work for firms that have employer-provided health insurance receive lower wages than people working at those firms who are not obese. At firms that do not provide health insurance, obese workers do not receive lower wages than workers who are not obese.
Source: Jay Bhattacharya and M. Kate Bundorf, "The Incidence of the Health Care Costs of Obesity," Journal of Health
Economics,
Vol. 28, No. 3, May 2009, pp. 649-58.
Firms that provide workers with health insurance may pay a lower wage to obese workers than to workers who are not obese because the
former
tend to be
less healthy
and consequently
A.
more
costly to insure and therefore employ due to their
higher
claim submission rate.
B.
less
productive at work.
C.
experience
higher
rates of absenteeism and early retirement.
D.
all of the above.
E.
A and B only.
Regarding the…
Chapter 16 Solutions
EBK ECONOMICS
Ch. 16.1 - Prob. 1RQCh. 16.1 - Prob. 2RQCh. 16.1 - Prob. 3RQCh. 16.1 - Prob. 4RQCh. 16.2 - Prob. 1RQCh. 16.2 - Prob. 2RQCh. 16.2 - Prob. 3RQCh. 16.2 - Prob. 4RQCh. 16.3 - Prob. 1RQCh. 16.3 - Prob. 2RQ
Ch. 16.3 - Prob. 3RQCh. 16.3 - Prob. 4RQCh. 16.3 - Prob. 5RQCh. 16 - Prob. 1SPACh. 16 - Prob. 2SPACh. 16 - Prob. 3SPACh. 16 - Prob. 4SPACh. 16 - Prob. 5SPACh. 16 - Prob. 6SPACh. 16 - Prob. 7SPACh. 16 - Prob. 8SPACh. 16 - Prob. 9SPACh. 16 - The Economics of Healthcare (Study plan 16.3) Use...Ch. 16 - Prob. 11APACh. 16 - Prob. 12APACh. 16 - Prob. 13APACh. 16 - Prob. 14APACh. 16 - Prob. 15APACh. 16 - Prob. 16APACh. 16 - Prob. 17APACh. 16 - Prob. 18APACh. 16 - Prob. 19APACh. 16 - Prob. 20APACh. 16 - Prob. 21APACh. 16 - Prob. 22APACh. 16 - Prob. 23APACh. 16 - Prob. 24APA
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- What Social Determinant of Health is the most important in determining better health and health outcomes?arrow_forward1. If the number of people with insurance increases, then what will most likely occur? a. a. a. a. a. The demand for health care will decrease. The demand for health care will increase. The demand for health care will be unaffected. There will be less preventive care. The amount of preventive care will be unaffected. 2.Requiring patients to pay a portion of the cost of the medical care they receive is designed to reduce the severity of a. a. a. a. a. moral hazard. diminishing returns. adverse selection. the principal-agent problem. market failure.arrow_forwardLA O Marginal Cost Marginal Benefit Q₂ Q₁ Quantity Refer to the diagram. Economists would argue that health care should be provided to patients in some amount less than Q 1. amount Q 2. amount Q 1. some amount between Q 1 and Q 2.arrow_forward
- 1.what do you understand by the term health insurance? 2.describe the different types of health insurance 3. Discuss factors that would make community based health insurance and private insurance successful.arrow_forwardWhat do you understand by the term "Health Insurance"?2. Describe the different types of Health Insurance3. Discuss factors that would make any two mentioned types of health insurance successful.arrow_forward9a Briefly explain what the present value of a health care and preventionarrow_forward
- Explain how health insurance works and describe the different health insurance plans that are available?arrow_forwardWhat is the opportunitiy cost of having health insurance? What is the opportunity cost of not having health insurance?arrow_forwardUse the following graph to answer the next three questions. Health of Population A Point A Point D Point B Which point on the graph best represents a country that has a very large health care infrastructure and where an increased quantity of health care would initially deliver almost no marginal benefit? Point E B Point C D Quantity of Medical Care Healtharrow_forward
- Take a look at how the different healthcare systems around the world works. How would you advise Congress to make effective health reform for the US health system?arrow_forwardQuestion 4 of 6. Which of the following individuals may qualify for a health savings account (HSA)? 0000 Ben and Vivian are covered by Medicare and a supplemental insurance policy. Dominique and Luca have health insurance through the Marketplace. Their deductible is $2,750. Deacon and Annie are covered by a plan through Deacon's work. Their deductible is $4,200. Victor is covered by Medicaid.arrow_forwardWhat are the pro and cons of National Health Service and National Health Insurance when controlling costs while maintaining high quality of care?arrow_forward
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