Health Economics
14th Edition
ISBN: 9781137029966
Author: Jay Bhattacharya
Publisher: SPRINGER NATURE CUSTOMER SERVICE
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Question
Chapter 5, Problem 7E
To determine
Salary of the physicians and the salary of the secretary.
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Use supply and demand concepts to explain why the American Medical Association finds it beneficial to require more strict standards for entrance to medical schools
What is the main reason why physicians believe they are not fairly compensated?
Increasing government control
Increasing cost of medical malpractice insurance
Decreasing insurance reimbursement
Incurring large debt in training
The idea that hospital competition has led to a “medical arms race” can help explain why the U.S. has more than twice the OECD average number of MRI machines per 1,000,000 population.
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- Which of the following is a reason for the prevalence of employer-sponsored health insurance in the US? It offers a way to pool risk (wrong) Wage controls in WWII made employer sponsored health insurance more common. (wrong) all are possible reasons Firm specific human capital helps reduce adverse selection.arrow_forwardWhich of the following statements is false? Significant increase in healthcare spending over the past seventy years can in part be explained by the increase in the cost of labor-intensive services. increase in the overall level of medical care prices. increase in intensity and quality of care. increase in the share of the healthcare costs spent on manufactured goods such as drugs. population growtharrow_forwardDemand studies in health care have provided estimates of both income and price elasticity. Estimates of income elasticity are usually above +1.0. Estimates of price elasticity typically range between -0.1 and -.75 (with hospital services at the lower end and elective services at the upper end). What information do these estimates convey? What does the price elasticity of demand estimates imply for government policymakers, insurance companies, and medical providers' decisions? What does the income elasticity of demand estimates imply for government policymakers, insurance companies, and medical providers' decisions?arrow_forward
- Explain the factors that may cause shortages of physicians in rural areas. Explain what types of policies might encourage physicians to move to rural areas and reduce the shortage.arrow_forwardThe fact that most medical care purchases are financed through insurance: a. has no effect on health care consumption because aggregate costs are the same regardless of payment method. b. reduces the amount of health care consumed by raising the price of additional units of care. c.has decreased health care costs and therefore reduced aggregate health care expenditures. d. increases the amount of health care consumed by reducing the price of additional units of care.arrow_forwardEven though the total cost of an uninsured hospital stay is lower, why would an uninsured person actually end up paying more than those with insurance?arrow_forward
- Indicate whether the statement is true or false, and justify your answer.In part, physicians’ salaries are higher than secretaries’ salaries because it takes more years to train to become a physician than it does to become a secretary.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_forwardAccording to Gaynor, Laudicella, and Propper (2011), Can you think of reasons why hospital mergers might lead to improvements in the quality of care for a given level of inputs (which is one measure of hospital productivity)? Learning by doing may be facilitated by hospital mergers. Large hospitals can achieve more specialization and consequently their costs of care may be lower.arrow_forward
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