Reference no: EM133105809

Questions on Economics

1. Can universal healthcare be guaranteed if the market is allowed to operate without government intervention? Why or why not?

2. Is the demand for overall healthcare more elastic or inelastic? What implication does this have?

3. What four assumptions must be met for a market to be perfectly competitive? If these assumptions are not met, does this mean perfect competition cannot be achieved?

4. Can a market work if it is not perfectly competitive? Will it reach equilibrium price? If a price is not at equilibrium will the result be more or less surpluses and shortages of goods and services than if at equilibrium?

5. What is meant by externalities and public goods? Does a market economy address externalities and public goods? What role, if any, can government have in addressing externalities and public goods?

Chapter 8 Health Insurance

1. What historical event occurred that resulted in a sharp increase in employer-sponsored health insurance? Why did this increase occur?

2. What are the advantages and disadvantages of employer sponsored health insurance to the insured?

3. Does having insurance make the insured more or less concerned about the cost of care?

4. What is fee for service? What are its advantages and disadvantages to the patient? To the practitioner?

5. How are these terms related to health insurance?

a. Asymmetric information

b. Adverse selection

6. What law passed in 2010 prevents insurance plans from charging higher premiums due to pre-existing conditions?

Chapter 9 Health Economics

1. How is Economics defined?

2. Why is the understanding of economics important to healthcare policy and law?

3. Explain these concepts:

a. Rational decision making

b. Utility

c. Diminishing marginal utility

4. What is economic demand?

5. How do these factors each influence demand?

a. Income

b. Quality

c. Price of a substitute

d. Price of a complement

6. See Box 9.2. Do you support theory x or y as it relates to healthcare? How might your position affect how you see the government role in healthcare?

7. What is elasticity and how might it be important in health economics?

8. What is the difference between average and marginal cost? Use an example if needed to explain.

9. What is supplier-induced demand? How might physicians induce demand in a fee for services reimbursement system?

10. Is the healthcare market perfectly competitive? If we allow the "free market" to operate without any interference from government will everyone be able to purchase healthcare?

11. Describe monopolistic competition.

12. What is market failure?

13. Is lack of income equity a market failure?

14. What is a public good or an externality? How do these affect the market and economy?

15. What role does government have in the healthcare market?

16. Give examples of:

a. Government financing public goods

b. Tax increases, tax deductions, and tax subsidies

c. Regulatory mandates

d. Prohibitions

e. Redistribution of income