Microeconomics, Student Value Edition (6th Edition)
6th Edition
ISBN: 9780134125756
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 1, Problem 1.1.8PA
To determine
Incentive problem for the student loan program.
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Students have asked these similar questions
Jay Bhattacharya and M. Kate Bundorf of Stanford University have found evidence that people who are obese and work for firms that have employer-provided health insurance receive lower wages than people working at those firms who are not obese. At firms that do not provide health insurance, obese workers do not receive lower wages than workers who are not obese.
Source: Jay Bhattacharya and M. Kate Bundorf, "The Incidence of the Health Care Costs of Obesity," Journal of Health
Economics,
Vol. 28, No. 3, May 2009, pp. 649-58.
Firms that provide workers with health insurance may pay a lower wage to obese workers than to workers who are not obese because the
former
tend to be
less healthy
and consequently
A.
more
costly to insure and therefore employ due to their
higher
claim submission rate.
B.
less
productive at work.
C.
experience
higher
rates of absenteeism and early retirement.
D.
all of the above.
E.
A and B only.
Regarding the…
What would happen if, in order to provide lower cost health care, the government decided to set a price ceiling (Pmax) in the health insurance market? (Please answer questions a, b, and c below.)
What is the effect of this maximum price legislation on the market for health insurance?
Briefly explain the situation for both consumers and producers (i.e. health care providers).
What might the government do to achieve their intended aims (i.e. lower costs and increased quantity)?
Briefly discuss at least one of the outcomes of the 2008 Oregon Experiement? Briefly discuss why Medicaid payments to providers are lower than those paid through private insurers.
Chapter 1 Solutions
Microeconomics, Student Value Edition (6th Edition)
Ch. 1.A - Prob. 1PACh. 1.A - Prob. 2PACh. 1.A - Prob. 3PACh. 1.A - Prob. 4PACh. 1.A - Prob. 5PACh. 1.A - What is the area of the triangle shown in the...Ch. 1.A - Prob. 7PACh. 1 - Prob. 1TCCh. 1 - Prob. 2TCCh. 1 - Prob. 1.1.1RQ
Ch. 1 - Prob. 1.1.2RQCh. 1 - Prob. 1.1.3PACh. 1 - Prob. 1.1.4PACh. 1 - Prob. 1.1.5PACh. 1 - Prob. 1.1.6PACh. 1 - Prob. 1.1.7PACh. 1 - Prob. 1.1.8PACh. 1 - Prob. 1.1.9PACh. 1 - Prob. 1.1.10PACh. 1 - Prob. 1.1.11PACh. 1 - Prob. 1.2.1RQCh. 1 - Prob. 1.2.2RQCh. 1 - Prob. 1.2.3RQCh. 1 - Prob. 1.2.4RQCh. 1 - Prob. 1.2.5PACh. 1 - Prob. 1.2.6PACh. 1 - Prob. 1.2.7PACh. 1 - Prob. 1.2.8PACh. 1 - Prob. 1.2.9PACh. 1 - Prob. 1.2.10PACh. 1 - Prob. 1.2.11PACh. 1 - Prob. 1.2.12PACh. 1 - Prob. 1.2.13PACh. 1 - Prob. 1.3.1RQCh. 1 - Prob. 1.3.2RQCh. 1 - Prob. 1.3.3RQCh. 1 - Prob. 1.3.4PACh. 1 - Prob. 1.3.5PACh. 1 - Prob. 1.3.6PACh. 1 - Prob. 1.3.7PACh. 1 - Prob. 1.3.8PACh. 1 - Prob. 1.3.9PACh. 1 - Prob. 1.3.10PACh. 1 - Prob. 1.3.11PACh. 1 - Prob. 1.4.1RQCh. 1 - Prob. 1.4.2RQCh. 1 - Prob. 1.4.3PACh. 1 - Prob. 1.4.4PA
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Similar questions
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- You read the following from an article on WebMD: "Spending on health care is out of control, and the reasons are that drug companies are exploiting their monopoly positions to raise prices, and doctors are ordering lots of unnecessary tests to protect themselves from lawsuits." What do you think about this quote? Select one: a. These reasons have nothing to do with spending on health care, which is driven mainly by government regulations. O b. It is probably true. Drug companies and doctors actually do those things. O c. It is probably false because drug companies are highly competitive and doctors don't care about lawsuits. O d. It is probably false. These actions could raise prices, but they won't necessarily raise spending.arrow_forwardQuestion 4 of 6. Which of the following individuals may qualify for a health savings account (HSA)? 0000 Ben and Vivian are covered by Medicare and a supplemental insurance policy. Dominique and Luca have health insurance through the Marketplace. Their deductible is $2,750. Deacon and Annie are covered by a plan through Deacon's work. Their deductible is $4,200. Victor is covered by Medicaid.arrow_forwardBriefly discuss the "free rider" concept as applied to health care.arrow_forward
- Economists in Champaign have been studying the local market for pizza. The market is described in the graph: Market for Pizza 10.3 10 9. 8 7 6.1 6 5.7 5 4.65 4.1 3.1 2.8 2.8 2.4 2.1 (2.1] 2 500 518 464 479 Quantity 401 430 545 577 Some research by the local university shows that eating pizza improves health in several ways. The local government decides to subsidize pizza consumption by paying $1.6 of every pizza sold(essentially a negative tax of $1.6). How much will the government spend with the subsidy? Pricearrow_forwardSuppose you are told that electronic cigarettes cause health problems such as depression and problems with arteries. 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 and a. premiums are shared. A standard welfare economist would say that e-smoking does not increase social costs, unless having health O 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.arrow_forwardUse the following graph to answer the next three questions. Health of Population A Point A Point D Point B Which point on the graph best represents a country that has a very large health care infrastructure and where an increased quantity of health care would initially deliver almost no marginal benefit? Point E B Point C D Quantity of Medical Care Healtharrow_forward
- 1. If the number of people with insurance increases, then what will most likely occur? a. a. a. a. a. The demand for health care will decrease. The demand for health care will increase. The demand for health care will be unaffected. There will be less preventive care. The amount of preventive care will be unaffected. 2.Requiring patients to pay a portion of the cost of the medical care they receive is designed to reduce the severity of a. a. a. a. a. moral hazard. diminishing returns. adverse selection. the principal-agent problem. market failure.arrow_forwardBriefly discuss why Medicaid payments to providers are lower than those paid through private insurers.arrow_forwardWhat is the relation between Health and Inequality?arrow_forward
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