7/22/25, 3:35 PM
EC248 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
GRADED A++
Terms in this set (61)
2 gov't options to pigouvian
improve social welfare in tax/subsidy
the presence of coasian
externalities bargaining
two conditions of the 1. property rights are well defined
coase theorem 2. transaction/bargaining costs are low
3 reasons why 1. overutilization of care
physicians are not 2. physician-induced demand/ defensive medicine
perfect agents of care 3. racial discrimination
1. "physician's workbench": not directly employed by
3 types of hospital- hospital
physician relationships 2. direct employees
3. physician-owned hospitals
learning-by-doing high volumes lead to good outcomes
hypothesis:
selective-referral good outcomes lead to higher volumes
hypothesis:
1. insurance: prices not transparent, moral hazard for
3 other barriers to entry insured patients
1/1
5
, 7/22/25, 3:35 PM
to the hospital industry 2. govt often sets prices
other than limited 3. emergency nature of health care means
competition that patients are unable to find the optimal
facility
greater competition among hospitals for doctors can
medical arms race result in
hypothesis redundancy/overconsumption of medical
technologies that will result in increased costs
without an improvement in quality
pros: exempt from taxes, donors recieve a tax deduction
pros and cons of being a cons: cannot sell stock, cannot distribute profits
nonprofit hospital to owners, restricted to certain charitable
activities
1. altruistic-motive theory: some entrepreneurs prefer
altruism over profits
4 theories for nonprofit 2. government-failure theory: politics ineffectively help
hospital existence those in need
3. asymmetric information: donors trust nonprofits more
with money
4. nonprofits are profits in disguise: "profits"
are distributed as higher wages or
nonmonetary benefits
what are last resort laws mandate that hospitals treat all who enter their
emergency rooms
what is uncompensated uncompensated care is all hospital charges
care and how is it not covered by insurance or OOP payments.
resolved unpaid for hospital care is paid for by cross-
2/1
5
EC248 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
GRADED A++
Terms in this set (61)
2 gov't options to pigouvian
improve social welfare in tax/subsidy
the presence of coasian
externalities bargaining
two conditions of the 1. property rights are well defined
coase theorem 2. transaction/bargaining costs are low
3 reasons why 1. overutilization of care
physicians are not 2. physician-induced demand/ defensive medicine
perfect agents of care 3. racial discrimination
1. "physician's workbench": not directly employed by
3 types of hospital- hospital
physician relationships 2. direct employees
3. physician-owned hospitals
learning-by-doing high volumes lead to good outcomes
hypothesis:
selective-referral good outcomes lead to higher volumes
hypothesis:
1. insurance: prices not transparent, moral hazard for
3 other barriers to entry insured patients
1/1
5
, 7/22/25, 3:35 PM
to the hospital industry 2. govt often sets prices
other than limited 3. emergency nature of health care means
competition that patients are unable to find the optimal
facility
greater competition among hospitals for doctors can
medical arms race result in
hypothesis redundancy/overconsumption of medical
technologies that will result in increased costs
without an improvement in quality
pros: exempt from taxes, donors recieve a tax deduction
pros and cons of being a cons: cannot sell stock, cannot distribute profits
nonprofit hospital to owners, restricted to certain charitable
activities
1. altruistic-motive theory: some entrepreneurs prefer
altruism over profits
4 theories for nonprofit 2. government-failure theory: politics ineffectively help
hospital existence those in need
3. asymmetric information: donors trust nonprofits more
with money
4. nonprofits are profits in disguise: "profits"
are distributed as higher wages or
nonmonetary benefits
what are last resort laws mandate that hospitals treat all who enter their
emergency rooms
what is uncompensated uncompensated care is all hospital charges
care and how is it not covered by insurance or OOP payments.
resolved unpaid for hospital care is paid for by cross-
2/1
5
