The U.S. is unusual in the developed world in that it uses a general tax to fund health insurance for the elderly.

Question 23

  1. The Stone Age is characterized by equality of income, low medical expenditures and population growth rates which doubled every 10,000 years.

1 points   

Question 24

  1. The U.S. is unusual in the developed world in that it uses a general tax to fund health insurance for the elderly.

1 points   

Question 25

  1. One of the key contributions health economists make to any debate on medical care decisions is to force the questions which make clear the perspectives of each party involved: patient, provider, or payer.

1 points   

Question 26

  1. Cost-effectiveness analysis is a limiting case of the general cost-benefit analysis.

1 points   

Question 27

  1. Hospitals using working capital cash accounts to make up for the difference in timing between accounts receivable and expenses paid.

1 points   

Question 28

  1. The role of the physician in the 21st century compared with her role in the early and mid 20th century will be a switch from expert and sole decision maker to that of team leader.

1 points   

Question 29

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  1. Sahar’s demand curve for chiropractic visits is characterized by Q = 10 – 0.2P.  The following table shows her demand for services:

    Price per Visit Number of Visits
    0 10
    10 8
    20 6
    30 4
    40 2
    50 0

    With insurance, at the $50 office visit price, how many of the services Sahar demands are worth less than to her than what they cost?


1 points   

Question 30

  1. The Agricultural Age is characterized by great income inequality and explosive population growth.

1 points   

Question 31

  1. A cost effectiveness study evaluates whether or not the benefits from inserting a drug eluting coronary stent add enough years of life expectancy to justify the cost; a cost-benefit study evaluates whether a drug eluting coronary stent, a beta blocker drug or cardiac bypass surgery might provide the most additional years of life expectancy per dollar spent.

1 points   

Question 32

  1. Bill’s employer offers a new health insurance benefit which covers preventive and cosmetic dental services, including orthodontic care, for employees and their family members. If Bill knows his children need extensive orthodontic care, he will buy the policy. This is an example of moral hazard.

1 points   

Question 33

  1. Kaiser Health Plan is the only HMO in the U.S. to consistently maintain its core competencies. That is, it has kept client satisfaction high, while keeping the growth rate of premiums higher than the growth rate of medical costs.

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