HEALTHCARE ECONOMICS MIDTERM SG NUR4280 | ACTUAL
QUESTIONS AND ANSWERS | WITH COMPLETE SOLUTION.
What proportion on the GDP is spent on health care? Answer - 0.18
Has health spending risen or fallen from 2008-2020 Answer - Risen
What was the health spending as a share of GDP in 2012? Answer - 17.2%
What is the health spending as a share of GDP expected to be in 2022P?
Answer - 19.9%
By how much did the Health spending per Capita in the U.S. change from 2012-
2014 Answer - about $1,000
In terms of medicare and medicaid, has health insurance spending per enrollee
increased or decreased from 2012-2014? Answer - increased
How much was the U.S. GDP in 2008? Answer - $14 trillion dollars
How much out $1 out of how many dollars was spent in the U.S. presently?
Answer - $1/$6
In 1960 $1 out of how many dollars was spent towards healthcare? Answer -
barely $1/$20
,Has the cost of healthcare increased relatively around the world? Answer - Yes
Out of the world which country spends the most on health care? Answer - The
U.S.
From 1960 to 2008 the health care expenditure in the U.S. has risen from
Answer - 5% GDP {1960}
to 16% GDP {2008}
What are two interesting economic properties? Answer - uncertainty and
contagiousness
most people can predict how many bananas or TV's they will buy in the next
week, but not how many emergency heart surgeries they will need in the next
week Answer - Uncertainty {interesting economic property}
It doesn't matter to you if your neighbor buys bananas or a TV but it does
matter if he skips the flu shot Answer - Contagiousness
What are some examples that can cause an increased demand for expensive
health care services? Answer - heart attack, broken leg, other unforeseen
incidents.
What does health related uncertainties motivate people to do? Answer -
Demand health insurance
Does demand in health insurance create a problem{s} what are they? Answer -
adverse selection and moral hazard
, Do adverse selection and moral hazard make health policy really difficult or
easy? Answer - difficult
The fact that other people's health decisions affect you creates______ Answer
- externalities
Examples of a positive externality Answer - vaccinations and other
preventative measures create positive externalities
examples of negative externality Answer - going out in public with Ebola virus
creates negative externalities
What effect do externalities have on the function of markets? Answer -
externalities undermine the efficient function of markets
If externalities undermine the efficient function of markets, what is required?
Answer - Government intervention
Examples of countries where the government is responsible for the vast
majority of health expenditures. Answer - Canada, Sweden, United Kingdom
Even in the US, with its private health care system, the
government is responsible for _____ of all health care spending Answer - half
of all health care spending
normative questions Answer - a question whose answer is based on an
opinion: Should everyone receive health care?
QUESTIONS AND ANSWERS | WITH COMPLETE SOLUTION.
What proportion on the GDP is spent on health care? Answer - 0.18
Has health spending risen or fallen from 2008-2020 Answer - Risen
What was the health spending as a share of GDP in 2012? Answer - 17.2%
What is the health spending as a share of GDP expected to be in 2022P?
Answer - 19.9%
By how much did the Health spending per Capita in the U.S. change from 2012-
2014 Answer - about $1,000
In terms of medicare and medicaid, has health insurance spending per enrollee
increased or decreased from 2012-2014? Answer - increased
How much was the U.S. GDP in 2008? Answer - $14 trillion dollars
How much out $1 out of how many dollars was spent in the U.S. presently?
Answer - $1/$6
In 1960 $1 out of how many dollars was spent towards healthcare? Answer -
barely $1/$20
,Has the cost of healthcare increased relatively around the world? Answer - Yes
Out of the world which country spends the most on health care? Answer - The
U.S.
From 1960 to 2008 the health care expenditure in the U.S. has risen from
Answer - 5% GDP {1960}
to 16% GDP {2008}
What are two interesting economic properties? Answer - uncertainty and
contagiousness
most people can predict how many bananas or TV's they will buy in the next
week, but not how many emergency heart surgeries they will need in the next
week Answer - Uncertainty {interesting economic property}
It doesn't matter to you if your neighbor buys bananas or a TV but it does
matter if he skips the flu shot Answer - Contagiousness
What are some examples that can cause an increased demand for expensive
health care services? Answer - heart attack, broken leg, other unforeseen
incidents.
What does health related uncertainties motivate people to do? Answer -
Demand health insurance
Does demand in health insurance create a problem{s} what are they? Answer -
adverse selection and moral hazard
, Do adverse selection and moral hazard make health policy really difficult or
easy? Answer - difficult
The fact that other people's health decisions affect you creates______ Answer
- externalities
Examples of a positive externality Answer - vaccinations and other
preventative measures create positive externalities
examples of negative externality Answer - going out in public with Ebola virus
creates negative externalities
What effect do externalities have on the function of markets? Answer -
externalities undermine the efficient function of markets
If externalities undermine the efficient function of markets, what is required?
Answer - Government intervention
Examples of countries where the government is responsible for the vast
majority of health expenditures. Answer - Canada, Sweden, United Kingdom
Even in the US, with its private health care system, the
government is responsible for _____ of all health care spending Answer - half
of all health care spending
normative questions Answer - a question whose answer is based on an
opinion: Should everyone receive health care?
