Health Economics and Policy 8th Edition Henderson Solution Manual | Complete Chapters 1-16 | Instant Download

HealthLEconomicsLandLPolicy,L8thLEditionL SolutionLManualLbyL
JamesLW.LHenderson.

1 OpportunityLcostLisLaLmeasureLof
a. foregoneLopportunities.
b. valueLbasedLonLtheLalternativeLnotLchosen.
c. valueLinLtermsLofLtheLcostLofLproduction.
d. theLdifferenceLbetweenLproductionLcostLandLresourceLcost.
e. bothLaLandLb.

2. TheLopportunityLcostLofLinvestingLinLaLnewLlithotripterL(aLmachineLthatLpulverizesLkidneyLston
esLwithLsoundLwaves)Lis
a. definedLbyLtheLdollarLcostLofLtheLequipment.
b. theLsameLforLeveryLhealthLcareLprovider.
c. measuredLbyLtheLdifferenceLbetweenLtheLexpectedLrevenuesLfromLsellingLtheLservic
esLofLtheLlithotripterLandLtheLinvoiceLcostLofLtheLmachine.
d. definedLbyLtheLnextLbestLuseLofLtheLmoneyLinvestedLinLtheLequipment.
e. impossibleLtoLcalculate.

3. TheL“invisibleLhand”LusingLAdamLSmith’sLterminologyLrefersLto
a. governmentLcontrolLofLtheLmarket.
b. marketLforcesLworkingLthroughLtheLpriceLmechanism.
c. theLmoneyLsupplyLthatLservesLtoLkeepLtheLeconomyLworkingLsmoothly.
d. theLroleLofLinnovationLinLmaintainingLaLsteadyLrateLofLgrowth.
e. “behind-the-
scenes”L policyL makingL toL influenceL howL marketsL allocateL scarceLresources.

4. AccordingLtoLrecentLpublicLopinionLpolls,LwhatLpercentageLofLAmericansLareLsatisfiedLwithLth
eLqualityLofLtheLmedicalLcareLtheyLreceive?
a. 15Lpercent.
b. 40Lpercent.
c. 65Lpercent.
d. 70Lpercent.
e. 90Lpercent.

,5. ChargingLhigherLpricesLforLoneLcategoryLofLpatientsLinLorderLtoLprovideLfreeLorLsubsidizedLca
reLtoLanotherLgroupLisLcalled
a. priceLdiscrimination.
b. cost-shifting.
c. categoricalLcosting.
d. reprehensibleLandLunethical.
e. creativeLaccounting.

6. AccordingLtoLeconomicLtheoryLwhatLisLtheLoptimalLpercentageLofLGDPLtoLbeLspentLonLmedic
alLcare?
a. 6Lpercent.
b. 8Lpercent.
c. 10Lpercent.
d. 12Lpercent.
e. ThereLisLnoLwidely-acceptedLwayLtoLdetermineLtheLoptimalLpercentage.

7. WhatLphraseLbestLdescribesLmedicalLcareLspendingLinLtheLUnitedLStatesLinL1998?
a. TotalLspendingLofLmoreLthanL$2LtrillionLrepresentsL17LpercentLofLGDPLandLapproximately
$8,000LperLcapita.
b. TotalLspendingLofLmoreLthanL$1LtrillionLrepresentsL14.8LpercentLofLGDPLandLalmostL$6,0
00LperLcapita.
c. TotalLspendingLofLlessLthanL$1LtrillionLrepresentsLlessLthanL13LpercentLofLGDPLandLalmost
$3,000LperLcapita.
d. TotalLspendingLisLrisingLatLdouble-
digitLratesLandLspendingLisLsoaringLtoLoverL$5,000LperLcapita.
e. TotalLspendingLisLunderLcontrolLandLrepresentsLaLshrinkingLpercentageLofLGDP.

8. TheL1974LfederalLlegislationLthatLexemptedLemployersLfromLcertainLstateLlawsLgoverningLheal
thLinsuranceLwas
a. COBRA
b. ERISA
c. CON
d. HIPAA
e. SCHIP

9. WhichLofLtheLfollowingLstatementsLisLbasedLonLpositiveLanalysis?
a. IndividualsL withoutL healthL insuranceL haveL lessL accessL toL physicians’L servicesL tha
nLthoseLwhoLhaveLhealthLinsurance.
b. TheLhighLcostLofLhealthLinsuranceLplacesLU.S.LfirmsLatLaLcompetitiveLdisadvantageLwit
hLtheirLforeignLcompetitors.
c. EmployersLshouldLbeLrequiredLtoLprovideLhealthLinsuranceLforLallLfull-
timeLworkersLandLtheirLdependents.
d. noneLofLtheLabove.

, e. BothLaLandLb.

10. EconomistsLuseLtheLtermL“marginal”LtoLdescribeLcostsLandLbenefits
a. thatLareLminimalLandLhardlyLworthLnoting.
b. thatLareLincrementalLandLthusLrelevantLtoLdecisionLmaking.
c. thatLareLnoteworthyLbutLnotLtheLmostLimportant.
d. whoseLimportanceLcanLbeLminimizedLthroughLhardLwork.
e. noneLofLtheLabove.

11. SelfLinsuranceLrefersLto:LtheLpracticeLofLsettingLasideLfundsLtoLpayLforLmedicalLcareLexpens
esLinsteadLofLpayingLpremiumsLtoLanLinsuranceLcompany.L Approximately,L
ofLallLemployeesLwhoLparticipateLinLgroupLinsuranceLplansLworkLforLfirmsLthatLself-insure.
a. startingLone’sLownLinsuranceLcompany
b. buyingLinsuranceLfromLaLnotLforLprofitLentity
c. settingLasideLfundLtoLpayLforLmedicalLcareLexpensesLinsteadLofLbuyingLinsurance
d. noneLofLthese
e. bothLaLandLb

12. WhichLofLtheLfollowingLisLnotLaLcharacteristicLthatLmakesLmedicalLcareLdifferentLfromLothe
rLcommodities?
a. DemandLforLmedicalLcareLisLirregular.
b. SellersLhaveLmoreLinformationLthanLbuyers.
c. Third-partyLpayersLabound.
d. For-profitLprovidersLplayLaLmajorLroleLinLdeliveringLmedicalLcare.
e. TheLtransactionLitselfLifLfilledLwithLuncertainty.


StructuredLDiscussion:

1. Resolved:LTheLUnitedLStatesLsystemLofLhealthLcareLdeliveryLisLinLaLstateLofLcrisis.

2. Resolved:L TheL recentL slowingL ofL healthL careL spendingL asL aL shareL ofL grossL domestic

productLwillLcontinue.L InLotherLwords,LtheLrelativeLsizeLofLtheLhealthLcareLsectorLhas
LreachedLaLnaturalLlimit.


AppendixL1A:LTheLMedicalLCareLPriceLIndex

ThisLappendixLdemonstratesLtheLuseLofLpriceLindexesLtoLmeasureLpriceLchanges.L CautionLisLad

visedLinLinterpretingLchangesLinLfixed-

weightLindexes,LsuchLasLtheLConsumerLPriceLIndexL(CPI)LandLtheLMedicalLCareLPriceLIndexL(MC
PI),LasLaLmeasureLofLinflation.L ProblemsLinLusingLtheLMCPI

, toLmeasureLmedicalLinflationLareLdiscussed,LincludingLwhatLtoLmeasure,LhowLtoLaccountLforLquali
tyLimprovements,LandLhowLtoLincorporateLnewLproductsLintoLtheLindex.

AppendixLObjectives
1. SummarizeLtheLissuesLinvolvedLinLmeasuringLpriceLchangesLwithLpriceLindexes.

2. DescribeLtheLuseLofLtheLmedicalLcareLpriceLindexLinLmeasuringLchangesLinLmedicalLca
reLprices.

3. SpecifyLalternativesLforLmeasuringLpriceLchanges.
AppendixLOutline

a. MeasuringLpriceLchangesLwithLindexLnumbers
b. MedicalLcareLpriceLindex
c. ProblemsLwithLusingLaLfixed-weightLindexLasLaLmeasureLofLinflation
d. MeasuringLinputsLinsteadLofLoutcomes
e. MeasuringLqualityLchanges
f. AccountingLforLnewLproducts
g. OtherLproblems
h. AlternativeLmethodsLtoLmeasureLmedicalLcareLinflation
i. SummaryLandLconclusions




ChapterL2:LUsingLEconomicsLtoLStudyLHealthLCareLIssues
ThisLchapterLintroducesLtheLbasicLeconomicsLmodelLofLsupplyLandLdemandLandLexaminesLitsLus
eLinLtheLstudyLofLhealthLcareLissues.L ALdiscussionLofLtheLprinciplesLofLoptimizingLbehaviorLsetsL

theLstageLforLtheLdevelopmentLofLtheLmodelLofLdemandLandLsupply.L ALdiscussionLofLtheLtheoryL

ofLtheLfirmLfollows,LcontrastingLperfectLandLimperfectLcompetition.L Supply-LandLdemand-

sideLimperfectionsLareLalsoLdiscussed.


ChapterLOutline

a. TheLrelevanceLofLeconomicsLinLhealthLcare