EXAM 1 Flashcards
In 2018 spending on hospitals, doctors and other clinic services in the U.S. was $2.16 trillion, holding steady at _____________ of total health care spending
59%
The U.S. health system is a complicated relationship among providers, consumers, and financiers of care that revolves around three concerns, EXCEPT:
Prestige
TRUE/ FALSE. In the United States, 31% of the overall spending in health care is a result of administrative waste.
false
On both the population and individual perspectives, the health status of the U.S. population is mediocre with increasing incidence and prevalence of the chronic disease across the life span and a relatively high mortality rate among ______________
infants
TRUE/FALSE. Many of the determinants of individual health status are shaped by the community and environment in which the person lives
TRUE
Which organization has defined health as “a complete state of physical, mental, and social well-being and not merely the absence of an illness or a disease”?
WHO
The demand and supply functions for health intersect with one another to establish which of the following?
Market equilibrium
Health economics is a field of economics that analyzes the behavior of which of the following in the healthcare economy?
Finances, producers, consumers, government
Which of the following maximizes utility or satisfaction from consuming various amounts of goods and services given limited income and the prices of goods and services considered in a given period?
consumer
In 2018 the USA spent $3.65 trillion that translates to $________ per person.
11,121
Which of the following are characteristics of perfect competition?
- Many sellers possessing tiny market shares
- A homogenous product
- No barriers to entry
- Perfect consumer information
Which of the following creates an incentive for new firms to enter an industry to obtain a share of the profits, thus driving the price down and inducing more goods and services to be produced?
Excess profit
TRUE/FALSE. When applied to healthcare industries, many of the assumptions of microeconomic analysis and characteristics often fit extremely well?
False
TRUE/FALSE Profit Maximization refers to a process that firms use to determine the most output given price levels that will yield the most return after production costs and the total cost outlay are taken into account
True
Supply curve shifts because of
Price of inputs
Technology
Number of production
The government can promote efficiency and equity in which of the following manners…
- Promoting positive externalities
- Providing public goods
- Enforcing antitrust laws
- Levying taxes
Which piece of legislation prohibits independent physicians from discussing their pricing policies to prevent monopolistic practices such as price fixing?
SHERMAN ANTITRUST ACT
TRUE/FALSE A firm producing pharmaceuticals dumps its waste in a river or pollutes the air is an example of External cost of production
True
TRUE/FALSE In addition to their effects on individual health, cigarette smoking and alcohol consumption may also have negative effects on the rest of society in terms of passive smoking and antisocial behavior, which are not compensated for in the private market can cause External costs of consumption
TRUE
Which of the following describe public goods
Non-rivalry and non-excludability
TRUE/FALSE. In Monopolistic market the main distinguishing characteristic of this market model is that firms sell differentiated products.
true
TRUE/FALSE. In Oligopoly market there may be a large number of firms in the industry, but there maybe other small firms who will be price takers, with limited market share.
true
TRUE/FALSE In Monopoly market there is minimal barriers to entry to the market.
false
TRUE/FALSE Health insurance market in United States is an example of Perfectly competitive market.
false
What is health economics?
A branch of economics dealing with the provision, delivery, and use of healthcare goods and services.
Definition of Health
a complete state of physical, mental, and social well-being and not merely the absence of disease or illness
Public Goods
a commodity or service that is provided without profit to all members of a society by the gov
Free rider problem
Individuals who are unwilling to pay for the goods and services if other people are willing to pay for them.
Nonexcludability
individuals can obtain the benefits from consuming a good without paying for it.
