Module 2 - The Market Model for Health Care Flashcards
In June, about 21,000 students graduated from accredited U.S. medical schools. However, there were about 29,000 available slots in residency programs to be filled in July. Which of the following best explains why there are 8,000 more residency slots than graduates from accredited U.S. medical schools?
Residency program slots not filled by U.S. medical graduates are filled by foreign medical graduates and foreign doctors that desire to practice medicine in the U.S
graduates and foreign doctors that desire to practice medicine in the U.S
Which of the following will not cause a shift in the medical care supply curve?
Select one:
a. A change in the number of high-profile medical malpractice lawsuits brought against physicians increasing the premiums on malpractice insurance.
b. a change in the cost of medical school tuition.
c. A wave of union activity that increases the average salaries of nurses nationwide.
d. an change in the amount of student aid available to promising undergraduate students studying biology.
e. a change in the percentage of the population with health insurance.
E. a change in the percentage of the population with health insurance.
When a physician knows more about alternative treatments than her patients, we say that _______ exists.
Asymmetrical information
Suppose that when the visiting cost to specialist doctors increases, Lonnie goes to see general practitioner doctors more often. To Lonnie,
Select one:
a. Specialist doctors and general practitioner doctors are complements.
b. Specialist doctors and general practitioner doctors are normal goods
c. Specialist doctors and general practitioner doctors are inferior goods.
d. Specialist doctors and general practitioner doctors are substitutes.
d. Specialist doctors and general practitioner doctors are substitutes.
When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price falls to $0.80, the quantity demanded increases to 600. Given this information and using the midpoint method, we know that the demand for candy bars is
Select one:
a. unit elastic.
b. elastic.
c. perfectly inelastic.
d. inelastic.
Inelastic
Suppose goods A and B are substitutes for each other. We would expect the cross-price elasticity between these two goods to be
Select one:
a. positive.
b. negative.
c. either positive or negative. It depends whether the current price level is on the elastic or inelastic portion of the demand curve.
d. either positive or negative. It depends whether A and B are normal goods or inferior goods.
A: Positive
Which of the following will NOT change the demand for office visits to the physician?
Select one:
a. unusually cold and damp weather during the winter.
b. they all change the demand for office visits.
c. layoffs at the local plant causing a decrease in the number of people with health insurance in the community.
d. television advertising by drug manufacturers to promote a new over-the-counter influenza treatment.
e. a change in the price of an office visit.
e. a change in the price of an office visit.
Suppose angioplasty and coronary artery bypass graft (CABG) surgery are substitute treatment alternatives for coronary artery disease. What should happen to the equilibrium price and quantity of angioplasty procedures if a new CABG technique is introduced that is less invasive (requiring a 4 inch incision under the breast bone rather than cracking open the patient’s rib cage) and requires one-third the recovery period of regular CABG surgery.
Select one:
a. Both price and quantity will increase.
b. Both price and quantity will decrease.
c. The introduction of a new CABG procedure should have no effect on the price or quantity of angioplasty procedures.
d. Price will increase and quantity will decrease.
e. Price will decrease and quantity will increase.
b. Both price and quantity will decrease.
Which of the following best describes productive efficiency?
Select one:
a. None of the above.
b. More than one of the above statements is true.
c. Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her.
d. Producing a medical service at the lowest possible cost.
e. Constructing a new medical facility to exactly offset a market shortage of such services.
d. Producing a medical service at the lowest possible cost
When the demand for medical care _______, the real hourly wage for physicians should _______.
Increase, Increase
Which of the following could explain why the demand for Tylanol is inelastic?
Select one:
a. Households devote a very small portion of their income to Tylenol purchases.
b. Tylenol is a luxury good.
c. Tylenol is a luxury for high income consumers but a necessity for low income consumers.
d. Tylenol is a rare commodity.
a. Households devote a very small portion of their income to Tylenol purchases.
What is the midpoint formula?
%∆P={(New Price-Old Price)/((New Price+Old Price)/2)}x 100
%∆QD={(New Quanity-Old Quanity )/(New Quanity+ Old Quanity)/2)]x 100
Income elasticity formula
EI = %Change in Quantity Demanded
————————————————–
% Change in Income
If the good in question has ______, then the demand would be elastic.
Substitues
If the good in question is a luxury good, then its demand would be ________.
Elastic
