Suppose you are told that electronic cigarettes cause health problems such as depression and problems witharteries. You also are told that electronic cigarettes do NOT produce second-hand smoke, meaning that e-smoking(called "vaping") by one person does not harm a person standing nearby. How might economists respond?A standard welfare economist would say that e-smoking imposes an externality if health insurance is pooled anda. premiums are shared.A standard welfare economist would say that e-smoking does not increase social costs, unless having healthO b. insurance makes people more likely to use electronic cigarettes.A behavioral economics would ask if people who use e-cigarettes become addicted.C.All of the above.d.

Welfare economics is the study the allocation of goods and resources and how it affects social…

Answered: Suppose you are told that electronic…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How important is the deterioration of social system in contributing to the healthcare spending crisis? Example?
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7) The graph below depicts the social loss from the existence of health insurance in the presence of moral hazard. Price Demand curve with partial coinsurance Quantity a. What is the cause of the social loss? Briefly explain. b. Why do we have health insurance if social loss is created as a result of health insurance? ( Social loss
Can
Tim exercises everyday and eats healthy. Cam is a couch potato and smokes. A health insurance company can't tell the difference between Tim and Cam's behavior. As a result, Tim will be offered a policy with a _____ and Cam will be offered a policy with a ______. A. low deductible; low premium B. low deductible; low deductible C. high deductible; low deductible D. high deductible; high deductible E. low deductible; high premium
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1. An article in the Economist observes: "Insurance companies often suspect the only people who buy insurance are the ones most likely to collect." What do economists call the problem that is described in the article? If insurance companies are correct in their suspicion, what are the consequences for the market for insurance? Use health insurance as an example.
Hi there, can you please help with the below question, with diagrams please! Suppose there is a consumption externality for drug use. Do a standard welfare analysis and propose a Pigovian tax.
The Tucker family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a deductible of $1,000 per person. If one family member has doctor and prescription medication expenses of $2,200, what amount would the insurance company pay?
Which of the following stalements is CORRECT about Medicare? A.Il is a medical assistance program B.Il is a hospital and medical expense insurance program. C.It provides benefis o lotally disabled persons only D.Its Part A provides payment for physicians' bills.
A dangerous habit among those who own cell phones is driving while talking or texting. Although a great deal has been done to inform drivers of the risks of doing multiple tasks while driving, this informational campaign has been ineffective in the face of increased ownership of cell phones. If you were a policymaker, what types of negative incentives would you suggest to discourage individuals from driving and talking or texting at the same time?
Assume that health insurance is private in a country, and the market for insurance is competitive. The figure below shows the marginal benefit and willingness and ability to pay curve. Premium (thousands of dollars per year) $160 billion. $80 billion. $160 million. $80 million. 12 10 8 606 4 2 0 D = MB 10 20 30 40 50 Quantity (millions of families insured) Suppose that the marginal social benefit of insurance exceeds the willingness and ability to pay by a constant $2,000 per family per year. Suppose the marginal cost of health insurance is a constant $8,000 a year. If the government decides to provide public health insurance, how much will taxpayers have to pay?

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