5) In 2012, a consumer spends $1000 on health insurance. In 2013, she decides to buy more, spending $1300. In 2014, she increases that amount further to $1500. In 2015, she stops increasing the amount she spends on health insurance. For this consumer in 2015: A. The marginal product from health insurance is greater than the marginal product from all other goods B. The marginal product from health insurance is equal to the marginal product from all other goods C. The last dollar spent on all other goods generates more utility than the last dollar spent on health insurance D. None of the above
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- What 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.1. Suppose a new drug was discovered that slowed the deterioration of health that accompanies aging. (All the graphs you draw should include labels, down and right arrows to indicate the changes before and after the new drug were discovered) a. What's the effect on the available time for work Tw and play Tz? Draw its labor–leisure graph including both budget constraints and indifference curve. b. What's the effect on optimal health H* ? Draw its marginal efficiency of capital (MEC) curve. c. Draw the production possibilities frontier. Explain it.6. Suppose a government agency improves well quality from wo to wi at a cost of C, and observes an improvement in health from ho to hị, and it places a value V on this health improvement. (Don't worry about how one could come up with a valuation V, let's just assume that this value is correct.) Is it correct to think that the net benefit from this program is V - C? When might this be an overstatement of the utility gains? When might it be an understatement? When might it be approximately correct? Hint: this depends on b and p.
- LIVING IN SPAINJackie moved to Spain to work for a public relations firm. She had health insurance from herprevious employer, but she was surprised to learn that her new employer in Spain did notoffer healthcare coverage. When she asked about this, she was told that more than 90percent of Spaniards use the public healthcare system, which was mostly free. However,her new employer did provide supplementary private health insurance that would allow herto receive quicker care from a private hospital if she desired.Jackie learned that she would be paying 4.7 percent of her salary and her employerwould pay 23.6 percent of her salary to the government for health insurance. She was given a Tarjeta Sanitaria Individual health card to prove that she had health insurance. With this,she could get free care at public hospitals and doctors’ offices. However, before seeing adoctor, she would need to register with a local primary care physician and decide whethershe would use public or private…1. Should the health care system prioritize care for members of disadvantaged groups over that of other patients? 2. Should clinicians attempt to redress injustices in the social determinants of health by prioritizing the disadvantaged when they enter the health care system?Suppose that someone wants to present data on health expenditures by different levels of educational attainment and produces the following table: Table 1 Less than high school High school degree Some college Associate's degree Bachelor's degree Graduate degree All consumers Drugs 447 454 473 582 551 675 515 Health care 2217 O O Appropriate use of decimal places O Appropriate title O Appropriate use of color Appropriate use of lines 3119 3289 3630 4340 5067 3556 Health insurance 1318 1901 1823 2086 2503 2880 2061 Consider the table carefully. The items below represent a set of considerations for making good visualizations. Which one of these is clearly wrong? Appropriate font sizes Appropriate labels Appropriate use of font styles Appropriate use of bold/italics
- Health care spending growth is outpacing spending growth in other sectors of theeconomy, growing from 5% of GDP to 17.9% in 2016. Spending growth can arise from anincrease in the quantity of care, an increase in the price of care, or both. a. Give two reasons why the quantity of health care consumed has increased over time.Explain. b. Since 1980, the price of medical care has increased 6.7 times as measured by the medicalcare consumer price index. Explain why it is difficult to track changes in prices formedical care. c. Consumers may benefit if price increases reflect an increase in the quality of medicalcare, but may be hurt if price increases do not reflect an increase in quality. For example,in 2015 Turing Pharmaceuticals raised the price of toxoplasmosis treatment Daraprim byover 5000%, from $13.50 to $750 per pill. Using a diagram of supply and demand, showhow a price increase initiated by suppliers can make consumers worse off when there isno accompanying quality increase. On…Question 30 When individuals do not have to pay for health care, then: O the equilibrium quantity of health care decreases o the demand of health care increases O the demand of health care decreases O the equilibrium price of health care decreases • Previous Saving f8 fg fio1. Utility and Consumer Surplus A. Use the figure below to fill in the total utility and marginal utility of medical care in the table. In this example, is the marginal utility of health care increasing or decreasing? What are some reasons why this might be the case (briefly explain; approximate 3 sentences)? Health (H) Utility 16 15 13 10 3 4 Medical care (q) 1 2 Units of Medical Care 0 1 Total Utility Marginal Utility 2 3 4 Briefly explain: Conceptually, does the marginal utility scheduled above reflect your own demand for going to the dentist to get a check-up?