HealthEcon FINAL Flashcards
It refers to two or more goods which are jointly used for consumption purposes. Because these goods are consumed together, an increase in the price of one good inversely influences the demand for the other.
Complementary Medical Services
It includes the monetary cost such as bus fare or gasoline plus the opportunity cost of time. Time cost accrue to traveling and expending delays in securing an appointment to a medical provider affects the quantity demanded for medical services.
Time Cost influences the Quantity Demanded for Medical Services
It is a fact of life and the need for health care is difficult to predict
Uncertainty
Any change in behavior as a
result of becoming insured. Usually the changes in the behavior that matter most are those that increase the pure premium of the insurance.
Moral Hazard
It may increase the quantity demanded for intravenous fluid and tubing and blood products.
Disaster
It represents the resources or inputs required to produce a good or service.
Cost
Supply shifters
Cost
Technology
Economies of scale
They are useful resource allocation mechanisms because they are automatic, responsive to changes in consumer preferences and, under perfect competition, allocatively efficient.
Markets
Alongside _______, __________________ and ____________________, is the correction of ____________ is another reason for government intervention in the market.
- Equity
- Redistribution of wealth
- Stabilization of macro economy
- Market Failure
Causes of Market Failure
Monopoly
Externalities
Public Good
Asymmetry of Information
It is characterized by a single supplier in the market. It is a situation where one firm can meet market demand at a lower average cost than two or more firms could meet that demand.
Monopoly
Monopoly can also occur as a result of?
Barriers to entry, few providers, and few close substitutes.
It is a cost or a benefit arising from an economic transaction that falls on people who do not participate in the transaction.
Externalities
2 types of externalities
Positive Externalities
Negative Externalities
It is a good or service that can be consumed simultaneously by everyone (it is non-rival) and from which no individuals can be excluded (non-excludable).
Public Good
It exists when one person in an economic transaction has more relevant information than the other person. It requires that the cost to the uninformed person of accessing this information is prohibitively high.
Asymmetry of Information
Market failure occurs in health care insurance markets in the form of _________ and moral _________.
Adverse selection
Moral Hazard
It is the process by which revenues are collected from primary and secondary sources, accumulated in fund pools and allocated to provider activities
Health System Financing
It refers to the raising of funds either directly from individuals seeking health care or indirectly through governments or donors.
Revenue Collection
It refers to the collection of funds that can be used for financing a given population’s health care so that contributors to the pool share risks.
Fund Pooling
It is the process of allocating funds to the providers of health care.
Purchasing
This is the simplest and earliest form of transaction between patient and provider.
Out-of-pocket payments
This is where providers are paid by an insurance company or a government.
Third-party payments
2 ways of paying health services
Out-of-pocket payments
Third-party payments
