Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 4.A, Problem 1ADQ
To determine
Asymmetric information and insurance price.
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Health care expenditures coming directly out of consumers' pockets, primarily in the form of deductibles and
copayments, account for what
care spending?
O 18 percent
35 percent
44 percent
O 21 percent
A group of 200 people seek out an insurance company to underwrite health insurance for its members. It expected
medical spending for the group is $1,200,000, what will the average premium bn If the health insurance company
adds a leading fee of 20 percent?
$14,400
$12,000
O $7,200
O $6,000
Suppose that one course of treatment costs $500,000. If given to patient A, it will increase life expectancy by one
month; for patient B, by two months; for patient C, by three months; and for patient D, by four months. The marginal
cost per additional year of life for the patient most likely to benefit is and the marginal cost per additional year of
life for the patient least likely to benefit is
O
$500,000; $2 million
$1.5 million; $6 million
$200,000; $500,000
O $2 million; $500,000
$6 million; $1.5 million
Chapter 4 Solutions
Economics (Irwin Economics)
Ch. 4.A - Prob. 1ADQCh. 4.A - Prob. 2ADQCh. 4.A - Prob. 3ADQCh. 4.A - Prob. 1ARQCh. 4.A - Prob. 2ARQCh. 4.A - Prob. 3ARQCh. 4.A - Prob. 1APCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQ
Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7P
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