Indicate whether the statement is true or false, and justify your answer.In the 1970s, researchers were worried that, while Americans were living longer than previous generations, they were actually less healthy during old age than before. This phenomenon is known as the “compression of morbidity.”
Q: Indicate whether the statement is true or false, and justify your answer.Medicare Part D, which was…
A: Medicare Part D was created through the U.S. Medicare Prescription Drug, Improvement, and…
Q: Indicate whether the statement is true, false, or unclear, and justify your answer.The fact that…
A: The situation of moral hazard occurs when a party involves in a risky event knowing that he is…
Q: Indicate whether the statement is true or false, and justify your answer.The Akerlof model indicates…
A: According to Akerlof's adverse selection problem the seller has more information than the buyer or…
Q: Indicate whether each statement is true or false, and justify your answer.If a medical screening…
A: The given statement is false.
Q: Indicate whether the statement is true or false, and justify your answer.Even though it is illegal…
A: True, because Bismarck companies are frequently making policies to contest risk selection.
Q: A field of study that integrates psychology and economics is called motivational finances? Group…
A: Answer: A field of study that integrates psychology and economics is called behavioral economics.
Q: Suppose that left-handed people are more prone to injury than right-handed people. Lefties have an…
A: As per Bartleby Guidelines, we have solved the first 3 sub-parts only. If you want us to solve the…
Q: Indicate whether each statement is true or false, and justify your answer.Insurance mandates do…
A: False, because mandates are legal requirement and that everyone in a population buy an insurance…
Q: Indicate whether the statement is true, false, or unclear, and justify your answer.An uninsured…
A: After the economic transactions, due to the lack of information between two parties, if one party…
Q: Indicate whether the statement is true or false, and justify your answer.Health insurance coverage…
A: True, health insurance coverage is mainly financed through payroll and other taxes, because…
Q: Indicate whether each statement is true or false, and justify your answer.If Medicare patients in…
A: False, because Boston may have a lesser health production functions than Boise and so need to spend…
Q: Indicate whether the statement is true or false, and justify your answer.The average length of…
A: Hospital costs make up for almost 40 percent of the personal health care expenses in the U.S. The…
Q: Indicate whether the statement is true or false, and justify your answer.Patients in France…
A: The French healthcare system includes public and private hospitals, doctors, outpatient care and…
Q: Indicate whether the statement is true or false, and justify your answer.People tend to…
A: The health economic theories suggest that people try to maximize their utility with respect to their…
Q: Indicate whether the statement is true, false, or unclear, and justify your answer.Although a firm…
A: Cutler and Reber 1998 find proof of an adverse selection death spiral at Harvard and evidence of…
Q: Indicate whether the statement is true or false, and justify your answer.In Canada, unlike in the…
A: False, because Currie in 2003 showed that the gap does make wider in Canada after age 10.
Q: Indicate whether each statement is true or false, and justify your answer.An ICER value indicates…
A: An ICER value (the incremental cost-effectiveness) is the ratio which is used as a decision making…
Q: The president-elect of healthystate appointed you on top of a health transition team and requested a…
A: To minimize the role of government and improvement of policy,I need to come up with brilliant…
Q: Indicate whether each statement is true or false, and justify your answer.Cost-sharing is used to…
A: In this case, the cost – sharing like deductibles and coinsurance are controls moral hazard in a way…
Q: Indicate whether the statement is true, false, or unclear, and justify your answer.Cawley and…
A: True, because the Rothschild – Stigliz model forecast the bulk markups in market with asymmetric…
Q: Indicate whether each statement is true or false, and justify your answer.The fact that total…
A: In this case, the total expenditure has been increasing as heart attack care becomes more limited,…
Q: Indicate whether the statement is true or false, and justify your answer.In an actuarially fair…
A: The given statement is true.
Q: Indicate whether the statement is true or false, and justify your answer.Increasing female labor…
A: In this case, the trend shared with the fact that restaurant meals inclined to be more calorically…
Q: Indicate whether the statement is true or false, and justify your answer.The RAND HIE found that…
A: The people assigned to be free health plan likely to frequently visit the hospital and also were…
Q: Indicate whether each statement is true or false, and justify your answer.Cost–benefit analysis…
A: Cost-benefit analysis (CBA) is used as medium for evaluating the economic efficiency of suggested…
Q: Indicate whether the statement is true or false, and justify your answer.The RAND study was…
A: The RAND study helps to ensure the groups facing various prices were statistically equivalent.…
Q: Indicate whether the statement is true or false, and justify your answer.People who have a newly…
A: People who have a newly identified chronic disease do suffer large wealth declines. whereas, only a…
Q: Indicate whether the statement is true or false, and justify your answer.New York has seen a…
A: The behaviors of the people are related to the different aspects of the economy. The main factor…
Q: Indicate whether the statement is true or false, and justify your answer.To date, no major health…
A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…
Q: Indicate whether each statement is true or false, and justify your answer.The Dartmouth Atlas…
A: The Dartmouth Atlas results are proof that, health is easier and or cheaper to produce in some…
Q: Indicate whether the statement is true or false, and justify your answer.The fact that practicing…
A: The Rate of return (ROR) on investment is the net loss or profit that an investor gets when he/she…
Q: Indicate whether the statement is true, false, or unclear, and justify your answer.The fact that…
A: Risk-averse behavior of individual states that if the person is exposed to the risk, he or she will…
Q: Indicate whether the statement is true or false, and justify your answer.Many countries in the world…
A: Many countries in the world have experienced increases in the number of obese individuals in their…
Q: Indicate whether the statement is true or false, and justify your answer.In the US, well-educated…
A: Socioeconomic status refers to the social position of an individual or household relative to other…
Q: Indicate whether the statement is true or false, and justify your answer.The Rothschild–Stiglitz…
A: The above statement is false.
Q: Indicate whether the statement is true or false, and justify your answer.A primary cause of…
A: False
Q: Indicate whether the statement is true or false, and justify your answer.During prospect theory’s…
A: False
Q: Indicate whether the statement is true or false, and justify your answer.People who drop out of high…
A: False According to Grossman Model, the marginal efficiency of investment curve shifts out with…
Q: Indicate whether the statement is true or false, and justify your answer.Unlike in the US, there are…
A: False
Q: Indicate whether the statement is true or false, and justify your answer.An hour spent exercising…
A: Free lunch zone: The term “free lunch zone” refers to the situation where there is no cost incurred.…
Q: Indicate whether the statement is true or false, and justify your answer.Suppose that a long-time…
A: While making a decision, consumer's emotions can have a larger impact than the behavior or thought…
Q: Indicate whether the statement is true or false, and justify your answer.Higher values of the…
A: Different forms of market structures differ in their level of competitiveness, ranging from highly…
Q: Indicate whether the statement is true or false, and justify your answer.In a study of babies born…
A: The thrifty phenotype hypothesis is a part of fetal origins hypotheses. The thrifty phenotype…
Q: Indicate whether the statement is true or false, and justify your answer.Results from the Oregon…
A: Answer: True. Due to health insurance, people make frequent visits to hospitals and also utilize…
Q: Indicate whether the statement is true or false, and justify your answer.Aggressive natalist…
A: Natalistic programs in Sweden and France have limited success, yet the birth rates are still very…
Q: Indicate whether the statement is true, false, or unclear, and justify your answer.A woman who uses…
A: Moral hazard can be defined as the situation in which one party who gets insured gets indulged into…
Q: Indicate whether the statement is true or false, and justify your answer. In the Grossman…
A: Grossman's model explains that people can improve their health by doing exercise and follow diet…
Q: Indicate whether the statement is true or false, and justify your answer.If buyers care sufficiently…
A: Adverse selection can be defined as a situation of more inside knowledge about a good bu one agent…
Q: Indicate whether the statement is true or false, and justify your answer.The thrifty phenotype…
A: The "thrifty phenotype" hypothesis proposes that poor health in adulthood is caused by economic…
Q: Indicate whether the statement is true or false, and justify your answer.The take-up rate of health…
A: The health insurance would result in the coverage of medical expenses for the individuals by a fixed…
Indicate whether the statement is true or false, and justify your answer.
In the 1970s, researchers were worried that, while Americans were living longer than previous generations, they were actually less healthy during old age than before. This phenomenon is known as the “compression of morbidity.”
The given statement is false.
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- Medicare recipients can purchase supplemental private insurance (known as Medigap insurance) to fill the gap in coverage left by Medicare. This gap includes copayments, deductibles, and prescription drug expenses not covered by Medicare. Several years ago, the government enacted regulations that specify minimum standards for items that Medigap policies must cover. This made the policies more expensive, and as a consequence, about 25 percent of the elderly who would have purchased some Medi-gap insurance purchased none at all [Finkelstein, 2004]. Consider an individual who consumes two goods, "insurance" and "all other goods." The cost of a unit of Medigap insurance is $1, as is the cost of a unit of all other goods. Sketch a budget constraint and set of indifference curves that are consistent with the following scenario: In an unregulated market, an individual with a $30,000 income purchases $5,000 worth of Medigap insurance. The government then puts mandates on Medigap policies that…Indicate whether the statement is true or false, and justify your answer.An hour spent exercising always pays for itself by decreasing the time spent sick by more than an hour.Suppose that there are two countries, Beta and Gamma. Suppose further that everyone in country Beta is on Insurance B and everyone in country Gamma is on Insurance G. Suppose further that both governments use government-set price controls. In 2005, country Beta decided to change the reimbursement rate for pharmaceuticals, but country Gamma did not make this change. You, a researcher, want to study the effect of offering coverage for this drug had an impact on health expenditures. You have average health expenditures for State Beta and Gamma prior to 2005 and post-2005. Using the information in the table below, a quick difference-in-difference calculation suggests covering this drug ____ health expenditures by approximately ____. State Time Periods Pre-2005 Post-2005 State Beta $1000 $1400 State Gamma $1500 $1700 a. decreased; $400 b. increased; $200 c. increased; $400 d. decreased; $200
- Suppose that there are two countries, Beta and Gamma. Suppose further that everyone in country Beta is on Insurance B and everyone in country Gamma is on Insurance G. Suppose further that both governments use government-set price controls. In 2005, country Beta decided to change the reimbursement rate for pharmaceuticals, but country Gamma did not make this change. You, a researcher, want to study the effect of offering coverage for this drug had an impact on health expenditures. You have average health expenditures for State Beta and Gamma prior to 2005 and post-2005. Using your finding from the question above, you can infer that country Beta likely _____ reimbursement rates for pharmaceutical drugs. State Time Periods Pre-2005 Post-2005 State Beta $1000 $1400 State Gamma $1500 $1700 a. lower b. did not change c. raisedIndicate whether the statement is true or false, and justify your answer.People who drop out of high school are able to produce more health than college graduates because they have more free time to invest in health production.Suppose that there are two countries, Beta and Gamma. Suppose further that everyone in country Beta is on Insurance B and everyone in country Gamma is on Insurance G. Suppose further that both governments use government-set price controls. In 2005, country Beta decided to change the reimbursement rate for pharmaceuticals, but country Gamma did not make this change. You, a researcher. want to study the effect of offering coverage for this drug had an impact on health expenditures. You have average health expenditures for State Beta and Gamma prior to 2005 and post-2005. Using the information in the table below, a quick difference-in-difference calculation suggests covering this drug health expenditures by approximately. Time Periods Pre-2005 Post-2005 $1000 $1400 $1500 $1700 State State Beta State Gamma decreased: $400 increased; $200 decreased: $200 increased; $400
- Indicate whether each statement is true or false, and justify your answer.The goal of health policy is to maximize health, wealth, and equity.In what sense is the individual considered a “producer” of health in the Grossman model?Indicate whether the statement is true or false, and justify your answer.Health status earlier in life is a good predictor of wealth later in life.
- Which of the following are possible reasons why empirical studies do not always find evidence for adverse selection in the real world? (please choose all that apply) Insurees with higher cognitive ability (though low-risk) were more likely to purchase supplemental insurance Insurers can accurately predict customers risk Insurees misperceive their risk Risk aversion overcomes adverse selection on health risksIndicate whether the statement is true or false, and justify your answer.Results from the Oregon Medicaid Experiment suggest that having health insurance has a positive impact on health status.Moral hazard creates tradeoffs that complicate insurance design and policy choices. Imagine a linear demand curve for outpatient clinician visits, and assume at $100 per visit there would be 50,000 annual visits to a particular urban clinic. A politician would like to be popular, and proposes making clinic visits free (zero price). You know, as the city's staff health economist, that if this were to happen, the number of visits would rise to 75,000. Your job is to testify before the city council, and answer at least two questions: how much social welfare loss from moral hazard would occur; and how much tax money must be raised to finance clinic services if visits were made completely free? a. $2,500,000; $15,000,000 b. $5,000,000; $30,000,000 c. $1,250,000; $7,500,000 d. $3,750,000; $22,500,000