NUR4280 Healthcare Economics
MidTerm SG Exam with All Correct
Answers 2025-2026 Updated.
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?
positive questions - Answer How much would it cost to provide free checkups and drugs for
everyone in a population? Questions that can be answered
What are some of the maladies that can occur in private markets? - Answer adverse
selection, moral hazard, and monopolistic firms
Standard economic demand curves are _____ sloping? - Answer downward sloping
What does elasticity measure? - Answer The degree of downward sloping
Elastic demand D{E} is price insensitive or sensitive? - Answer Elastic demand is price
sensitive
What is the definition price sensitive? - Answer changes in price greatly affect the quantity
demanded
Inelastic demand D{I} is price insensitive or sensitive? - Answer Inelastic demand is price
insensitive
What is the definition of price insensitive? - Answer Price insensitive means that changes in
price do not significantly change the quantity demanded
Is the demand for health care downward-sloping? - Answer YES
Do people with different levels of utilizations end up with different health outcomes? - Answer
Are people sensitive to the price of healthcare in terms of vaccines? - Answer inelastic
Are people sensitive to the price of healthcare in terms of band-aids? - Answer elastic
What is the definition of a randomized experiment? - Answer a study that assigns treatments
randomly to different groups of study participants
MidTerm SG Exam with All Correct
Answers 2025-2026 Updated.
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?
positive questions - Answer How much would it cost to provide free checkups and drugs for
everyone in a population? Questions that can be answered
What are some of the maladies that can occur in private markets? - Answer adverse
selection, moral hazard, and monopolistic firms
Standard economic demand curves are _____ sloping? - Answer downward sloping
What does elasticity measure? - Answer The degree of downward sloping
Elastic demand D{E} is price insensitive or sensitive? - Answer Elastic demand is price
sensitive
What is the definition price sensitive? - Answer changes in price greatly affect the quantity
demanded
Inelastic demand D{I} is price insensitive or sensitive? - Answer Inelastic demand is price
insensitive
What is the definition of price insensitive? - Answer Price insensitive means that changes in
price do not significantly change the quantity demanded
Is the demand for health care downward-sloping? - Answer YES
Do people with different levels of utilizations end up with different health outcomes? - Answer
Are people sensitive to the price of healthcare in terms of vaccines? - Answer inelastic
Are people sensitive to the price of healthcare in terms of band-aids? - Answer elastic
What is the definition of a randomized experiment? - Answer a study that assigns treatments
randomly to different groups of study participants
