MICROECONOMICS (LL) W/CONNECT 21ED
21st Edition
ISBN: 9781260361285
Author: McConnell
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 24, Problem 9DQ
To determine
The interaction between the advances in medical technology and the health insurance.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose that the price elasticity for hip replacement surgeries is 0.2. Further suppose that hip replacement surgeries are originally not covered by health insurance and that at a price of $50,000 each, 10,000 such surgeries are demanded each year. LO24.2 a. Suppose that health insurance begins to cover hip replacement surgeries and that everyone interested in getting a hip replacement has health insurance. If insurance covers 50 percent of the cost of the surgery, by what percentage would you expect the quantity demanded of hip replacements to increase? What if insurance covered 90 percent of the price? If insurance covers 50 percent of the bill, just assume that the price paid by consumers falls 50 percent.) b. Suppose that with insurance companies covering 90 percent of the price, the increase in demand leads to a jump in the price per hip surgery from $50,000 to $100,000. How much will each insured patient now pay for a hip replacement surgery? Compared to the original situation,…
As one of the largest and fastest-growing industries in 2018, health care provided how many jobs for wage and salary workers? O 18 million 30 million 3 pts O 24 million O 12 million
only typed answer
Suppose that the market demand for medical care is summarized by the demand function: Qd = 100-2p and the market supply is summarized by the supply function: Qs= =20+2p (1) Calculate the equilibrium quantity and price, assuming no health insurance is available. (2) Suppose that health insurance is made available that provides for a 20 percent coinsurance rate. Calculate the new equilibrium price and quantity. (Hint: How does the demand curve shift?) (3) Calculate the deadweight loss due to this insurance.
Chapter 24 Solutions
MICROECONOMICS (LL) W/CONNECT 21ED
Ch. 24 - Prob. 1DQCh. 24 - Prob. 2DQCh. 24 - Prob. 3DQCh. 24 - Prob. 4DQCh. 24 - Prob. 5DQCh. 24 - Prob. 6DQCh. 24 - Prob. 7DQCh. 24 - Prob. 8DQCh. 24 - Prob. 9DQCh. 24 - Prob. 10DQ
Ch. 24 - Prob. 11DQCh. 24 - Prob. 12DQCh. 24 - Prob. 13DQCh. 24 - Prob. 14DQCh. 24 - Prob. 15DQCh. 24 - Prob. 16DQCh. 24 - Prob. 17DQCh. 24 - Prob. 18DQCh. 24 - Prob. 1RQCh. 24 - Prob. 2RQCh. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 1PCh. 24 - Prob. 2PCh. 24 - Prob. 3P
Knowledge Booster
Similar questions
- (Last Word) The combined cost of Social Security and Medicare programs was what percent of U.S. GDP in 2008 (A) 7.6 (B) 12.4 (C) 17.2 (D) 2.9arrow_forwardComplete the accompanying table and answer the accompanying questions. (L01, LO6, LO7) a. At what level of the control variable are net benefits maximized? b. What is the relation between marginal benefit and marginal cost at this levelof the variable? Control Variable Q Total Benefits B(Q) Total Cost C(Q) Net Benefits N(Q) Marginal Benefit MB(Q) Marginal Cost MC(Q) Marginal Cost MC(Q) 100 1200 950 60 101 1400 70 102 1590 80 103 1770 90 104 1940 100 105 2100 110 106 2250 120 107 2390 130 108 2520 140 109 2640 150 110 2750 160arrow_forwardPreventive 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?arrow_forward
- 7. Oster (2020) “Health Recommendations and Selection in Health Behaviors” which found that spurious links between health behaviours and good health outcomes can be self-reinforcing if individuals who engage follow the recommendation also engage in other positive health behaviours. a) Briefly describe in your own (layperson) words what this implies about false positive findings and null findings. b) Can you think of an example where the opposite is true? That is, individuals who follow the recommendation also engage in negative health behaviors. c) Suppose a medical examiner (coroner) is deciding the cause of death of a recently deceased patient. The patient overdosed and is unclear whether the overdose was accidental or intentional (i.e., suicide). The medical examiner remembers hearing on the news that morning that suicides have been rising in recent years. What does this imply about the likely cause of death the medical examiner will record on the death certificate? What does this…arrow_forwardAbdul’s utility function is given by U A 5 M A 2 y M B , where M A is Abdul’s wealth level and M B is Benjamin’s wealth level. Benjamin’s utility function is given by (LO1) U B 5 M B 2 y M A . Suppose M A 5 M B 5 10 initially, and suppose there is a joint project that Ab dul and Benjamin can undertake that will generate an additional 10 units of wealth to divide between them. The project is neither pleasant nor unpleasant. What is the minimum payment Abdul must be given to secure his agreement to perform the project? What is the minimum payment Benjamin must be given? Will they perform the project? (LO1)arrow_forwardHow do you draw a health production function with individuals receiving some health producing intervention as inputs and health benefits as outputs that shows declining returns in output. What does “declining returns” imply about the marginal health benefit per person served/treated along this production function? How does this relate to “specialization of inputs”? How about “selection to treatment”? If we assume that you have two distinct means of producing health (programs A & B) with identical PFs as you drew above. Given a fixed amount of inputs (e.g. ability to treat/serve some number of individuals), draw the production possibilities frontier curve for these two programs. What is an opportunity cost and how does it relate to the PPF curve? If our value the health benefits from both programs equally, what point (label as X) do you pick on the PPF curve and why? Suppose program A works best for children, and program B best for adults, and you value health…arrow_forward
- Suppose a particular population has two kinds of health risks, high and low. Let the expected annual health care costs for the high risk be $10,000, and for the low risk, half that. If there are twice as many low risk as high risk individuals, and if the one insurer’s administrative load is 20%, what would the community rated premium be if everyone is compelled to and able to buy health insurance? Note: administrative load can be construed as the amount that the insurer has in costs to run the plans above and beyond the "health care costs."arrow_forwardSuppose a two-person household. Person 1 has h1 units of time available and takes l1 units of leisure time, and person 2 has h2 units of time available and takes l2 units of leisure time. Collectively, the two persons in the household care about their total consumption c, and their total leisure l=l1+l2, and they have preferences over their total consumption and total leisure just as specified in the course. But person 1 faces a market wage w1, and person 2 faces a market wage w2, with w1 > w2. 1) Draw the budget constraint faced by the two-person household. What will the household do, that is, how much does each household member work? 2) What happens if w2 rises? (w1 > w2 still holds) 3) Explain your results and interpretarrow_forward1. What assumptions of the perfectly competitive marketplace are violated in medical markets? How does each affect equilibrium price and quantity? 2. One of the significant problems in medical care markets may be the informationproblem. Asymmetric information has led to two important defects in the medicalmarketplace. What are they? How do these defects affect medical markets? 3. Explain how market failure can be used to justify government intervention in medical care markets.4. What are the three areas objectively used to evaluate the effectiveness of medical care delivery? Why are they important?arrow_forward
- 37 Identify the correct statement about the health care industries in different countries today: Socialization of the health care industry in Canada eliminates the problem of scarcity in the health care industry. There is a widespread presence of both privately-operated and government-operated enterprises in the health care industries in most European countries. The high-income countries of Europe are able to provide as much health care, free of charge, as their citizens want. Health care in Canada is a socialized industry.arrow_forward-Ben has named Jerry as primary beneficiary of Ben's life insurance policy and Tom as the contingent beneficiary. In which of the following ways do the rights of Jerry differ from the rights of Tom? - -If Jerry is living when Ben dies, Tom has no legal right to any of the life insurance lump-sum death proceeds. -The only circumstances under which Tom would have any legal right to the lump-sum death proceeds would be if Jerry predeceases Ben. -a.1 Only -b.2 Only -c.Both 1 and 2arrow_forward9) In which of the following countries does health insurance not pay for most preventive care procedures? A) Canada B) Japan C) the United Kingdom D) the United States 10) Substantial co-payments are typically not required as a part of the health care system in A) Canada and the United Kingdom. B) Japan and Canada. C) the United States and Japan. D) Japan and the United Kingdom. 11) The largest government-run health care system in the world, with 1.7 million employees, is the National Health Service (NHS) in the United Kingdom. The NHS receives its funding primarily from A) tariffs. B) the World Health Organization. C) income taxes. D) private businesses. 12) Typically, the ________ in a country, the higher the level of spending per person on health care. A) higher the level of income per person B) larger the population C) higher the level of income taxes D) lower the median age of the population 13) In ________, health care spending per person…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education