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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Students have asked these similar questions

Please answer questions D-H, I have already answered A , B,C but it may help you to still solve them yourself. Thank you!

2. A firm’s production function is given by:Q = 10KLThe unit capital and labour costs are 2 and 1 pounds respectively. The firm is contracted to produce2000 units.(a) Write out the optimisation problem of the firm. (b) Express this problem using a Lagrangian function. (c) Find values of K and L which fulfil the contract with minimal cost to the firm. (d) Calculate the total cost to the firm.

3. Consider the following estimated regression equation, estimated using a sample of firms, where RDis total firm spending on research and development in USD ($), Revenue is total firm revenuein USD ($), and W ages is the firms’ total spending on wages in USD ($) (standard errors inparentheses):RDd = 1000(600)+ 0.5(0.1)Revenue + 1.5(0.5)W ages,(a) Interpret the coefficients on each of the explanatory variables. (b) Which of the three coefficients are statistically significant at the 5% level of significance? Howdo you know? A researcher runs a two-sided statistical test of the null hypothesis that both the coefficients onthe explanatory variables above are jointly equal to 0.25 (mathematically, that β1 = β2 = 0.25),and reports a p-value of 0.045.(c) What does this p-value mean for the outcome of the test? (d) What would an appropriate two-sided alternative hypothesis look like?

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

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