Health care industries in the USA.

Question

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Answer 1

Question

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

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M” method Given the following model, solve by the method of “M”. (see image)

As indicated in the attached image, U.S. earnings for high- and low-skill workers as measured by educational attainment began diverging in the 1980s. The remaining questions in this problem set use the model for the labor market developed in class to walk through potential explanations for this trend. 1. Assume that there are just two types of workers, low- and high-skill. As a result, there are two labor markets: supply and demand for low-skill workers and supply and demand for high-skill workers. Using two carefully drawn labor-market figures, show that an increase in the demand for high skill workers can explain an increase in the relative wage of high-skill workers. 2. Using the same assumptions as in the previous question, use two carefully drawn labor-market figures to show that an increase in the supply of low-skill workers can explain an increase in the relative wage of high-skill workers.

Answer 2

Question

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

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Answer 3

Question

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

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Answer 5

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

Answer 6

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

Answer 7

Chapter 24, Problem 1DQ

To determine

Health care industries in the USA.

Answer 8

Expert Solution & Answer

Explanation of Solution

Rising expenditures on goods such as household appliances or education are considered as economically desirable because the consumers are willing to pay the price for these goods. In addition, the production of these goods (appliances or education) is expanding under a relatively competitive market conditions. But there is concern about rising expenditures in the health care industry in the USA.

There is a concern about the same expenditures in the health care industry because of a unique feature of the health care market. On the demand side, there is an imperfect competition in the sense that the buyers have different information about the services needed or the fees that will be charged for the services. On the supply side also, there is an imperfect competition in the sense that the doctors control much of the provision of health care.

Moreover, in context of health insurance, the third-party insurance companies pay the direct costs of most health care on a fee-for-service basis. That is, the consumer pays less than the full price at the time of consumption. This leads to overconsumption. This overconsumption by the insured people may lead to the problem of moral hazard. In short, the economists are concerned about the health care in the USA due to the problem of inefficient allocation of resources in the health care industries.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Facts about the US health care: The US health care industry has 17 million workers, in5,800 hospitals. In the USA, most of the people have private health insurance. In recent years, the spending on health care facilities has increased (may be due to the high cost and price for health care).

Answer 12

Ch. 24 - Prob. 1DQ Ch. 24 - Prob. 2DQ Ch. 24 - Prob. 3DQ Ch. 24 - Prob. 4DQ Ch. 24 - Prob. 5DQ Ch. 24 - Prob. 6DQ Ch. 24 - Prob. 7DQ Ch. 24 - Prob. 8DQ Ch. 24 - Prob. 9DQ Ch. 24 - Prob. 10DQ

Health care industries in the USA.

Health care industries in the USA.

Explanation of Solution

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Chapter 24 Solutions