Question 1 (5 points) Which of the following is true about adverse selection i

Question 1 (5 points)

Which of the following is true about adverse selection in healthcare?
Question 1 options:
It is a way to explain why insurance companies make money.
It has likely led to less-healthy people buying insurance on the ACA Healthcare Marketplace exchanges, while those who are healthier may choose not to buy it (and pay the penalty when there was one).
It explains why healthy people buy so much health insurance.
It is responsible for people making risky decisions in their everyday lives.
Question 2 (5 points)

Insurance increases the likelihood that healthcare markets will function ideally to keep prices low.
Question 2 options:True
False
Question 3 (5 points)

Assume you are managing an imaging clinic that performs MRI exams.
If the marginal revenue on each MRI is $2500, and the marginal cost for each is $500, what would be the profit or loss on the 59 MRIs performed at your clinic last month?
Question 3 options:
[$126,000] (loss)
$156,000
$104,000
$118,000
Question 4 (5 points)

Match the following:
Question 4 options:1234
Availability Bias
1234
Anchoring Bias
1234
Representative Bias
1234
Confirmation Bias
1.
A cognitive trap that occurs when some facts are hard or easy to recall.
2.
The tendency to overstate how typical a small sample size is of the whole.
3.
This bias explains why two people with opposing views can see the same evidence and feel it supports their position. It stems from our tendency to see, interpret, favor, and recall information in a way that agrees with our preexisting beliefs.
4.
A cognitive trap that occurs when an irrelevant initial fact influences a decision.
Question 5 (5 points)

Two parts:
A bat and a ball together cost $1.10. The bat costs $1.00 more than the ball. How much does the ball cost?
What behavioral economics concept does this question (and the most common/quick answer) illustrate by analogy?
Question 5 options:Paragraph
Lato (Recommended)
19px (Default)
Question 6 (5 points)

The price elasticity of demand for healthcare, in general, is considered to be:
Question 6 options:
Unitary elastic
None of the other answers is correct.
Elastic
Inelastic
Question 7 (5 points)

In your own words:
1. Describe what is meant by “asymmetric information”
2. Describe how the problem of asymmetric information may affect the demand and pricing for health insurance.
3. Explain how the problem of asymmetric information is related to adverse selection.
Question 7 options:Paragraph
Lato (Recommended)
19px (Default)
Question 8 (5 points)

A study showed that the demand for licensed practical nurses (LPNs) increased as the wages for registered nurses (RNs) increased. From what we learned in Chapter 10, which of the following are correct assumptions to make (choose all that are correct):
Question 8 options:
Employers appear to be treating LPNs as substitutes for RNs.
An increase in wages for RNs shifted the demand curve for LPNs up and to the right.
Employers appear to be treating LPNs as a complement to RNs.
If there was no corresponding supply shift of LPNs yet, wages for LPNs also will also begin to increase.
Since the increase in wages for RNs is a non-price related change, only the quantity demanded for LPNs will change, rather than a shift in demand (the entire curve) for LPNs.
Question 9 (5 points)

Give me a concise definition (in your own words, as much as possible) for:
Adverse Selection in healthcare
and
Moral Hazard in healthcare
Question 9 options:Paragraph
Lato (Recommended)
19px (Default)
Question 10 (5 points)

Healthcare economics is identical to other fields of economics when it comes to supply and demand theory.
Question 10 options:True
False
Question 11 (5 points)

There are two parts to this question. Please read carefully:
1. In general, the marginal cost can be calculated by dividing what by what?
2. Use this formula to calculate the marginal cost for the third column (change from 300 to 350 surgeries) given the following data set:
Surgeries250300350400450
Price$2,000$1,920$1,800$1,675$1,550
Revenue$500,000$576,000$630,000$670,000$697,500
Cost$516,000$541,500$565,500$591,000$621,000
Question 11 options:Paragraph
Lato (Recommended)
19px (Default)
Question 12 (5 points)

Which statements are accurate when talking about market power (choose all that apply):
Question 12 options:
Having fewer competitors increases market power.
Market power is the ability of a company to set the price of its product or service profitably above market rates without losing market share.
Differentiation of your product or service from others is a way to increase market power.
Healthcare organizations don’t have any market power because all other healthcare organizations are perfect substitutes.
Question 13 (5 points)

Define the following terms in your own words (2.5 points) AND give an example of each (2.5 points):
A substitute good or service.
A complementary good or service.
Question 13 options:Paragraph
Lato (Recommended)
19px (Default)
Question 14 (5 points)

Which of the following is the best example of a product or service that provides a benefit externality?
Question 14 options:
a bookstore that is open 24 hours
the construction of a private road that allows vehicles if a toll is paid
the construction of a golf course in a private hotel
a free vaccination program
Question 15 (5 points)

Imagine you are the manager of a radiology clinic. You ask your management team to put together some numbers to see if it makes sense for your clinic to try and increase the number of MRIs done each month from 300 (what you do currently) to 400 (what you think you might be able to do with some outreach to local physicians).
Your management team tells you that currently performing 300 MRIs per month at $2000 per MRI and that the total costs per month are $568,500.
They calculate that to perform 400 MRIs per month, the price elasticity of demand tells them you can only charge $1800 per MRI and your total costs per month will be $718,000.
1. Should you try to increase the number of MRIs to 400?
2. Why or why not?
Question 15 options:Paragraph
Lato (Recommended)
19px (Default)
Question 16 (5 points)

During recessionary periods, the sale of ground beef goes up. This indicates that
Question 16 options:
people have more time to make their own hamburgers during recessionary times
ground beef is a normal good
ground beef is an inferior good
people have more time to be outdoor and cook hamburgers during recessionary times
Question 17 (5 points)

Eighty percent of the participants at a meeting are physicians. The rest are nurse practitioners. Your neighbor Amy is there. She is female, 40, married, and highly motivated. Colleagues have told you that she is extremely capable and promises to be very successful. What is the probability that Amy is a physician?
Question 17 options:
More than 80%
80%
Less than 80%
70%
Question 18 (5 points)

A vaccine costs $200 per patient. Administration of the vaccine to 1,000 people is expected to increase the number of pain-free days for this population from 360,000 to 362,000.
Calculate the cost per additional pain-free day due to vaccination? (2.5 points):
Discuss whether this is a good investment and explain your conclusion? (2.5 points):
Question 18 options:Paragraph
Lato (Recommended)
19px (Default)
Question 19 (5 points)

The income elasticity of demand for a product is likely to be greater . . .
Question 19 options:
if the product is a luxury item rather than an absolute necessity.
the smaller the number of substitute products are available.
the smaller the proportion of one’s income is spent on the product.
If the product is an imported good rather than a domestically-produced good.
Question 20 (5 points)

With what you now know about price elasticity of demand – both elastic and inelastic demand – answer the following question: A price discriminating firm will charge the lowest price when the price elasticity of demand is:
Question 20 options:
Lowest
Highest
Equal to 1
Zero

ORDER A SIMILAR PAPER NOW