EBK HEALTH ECONOMICS
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ISBN: 8220106671054
Author: TU
Publisher: YUZU
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Question
Chapter 2, Problem 12AP
(a)
To determine
Preventative care and inpatient care.
(b)
To determine
Summarize the data in the given table.
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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…
Preventive care is not always cost-effective. Suppose that it costs $100 per person to administer a screening exam for a particular disease. Also suppose that if the screening exam finds the disease, the early detection given by the exam will avert $1,000 of costly future treatment. a. Imagine giving the screening test to 100 people. How much will it cost to give those 100 tests? Imagine a case in which 15 percent of those receiving the screening exam test positive. How much in future costly treatments will be averted? How much is saved by setting up a screening system? b. Imagine that everything is the same as in part a except that now only 5 percent of those receiving the screening exam test positive. In this case, how much in future costly treatments will be averted? How much is lost by setting up a screening system?
Explain how each of these situations will affect the quantity demanded of health insurance:
d) New technologies that enable medical illness to be predicted more accurately.
e) A tendency among buyers to become less risk, on average.
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