The Stern Report seeks to discount $6 trillion of annual benefits occurring 100 years from now. If these are discounted at a rate of 4 percent, the present discounted value of the benefits will be approximately:
In Nyman’s insurance formulation:
some portion of the income transfer is welfare increasing, but there can also be moral hazard which is welfare decreasing.
there is no income transfer.
none of the insurance transfer is welfare increasing.
all of the insurance transfer is welfare increasing.
Compared to men, women have __________ health expenditures earlier in their lives and __________ health expenditures later in their lives.
Women who have had Cesarean births may be denied coverage due to “pre-existing conditions.” Insurers who deny this coverage are trying to:
prevent the moral hazard from higher cost clients.
prevent adverse selection of higher cost clients.
satisfy the preferences of those consumers who buy their insurance.
increase profits by enlarging the pool of potential buyers.
According to economic definitions, __________ has (have) most of the characteristics of public goods.
“over the air” radio
city-run golf courses
In the first decade of the twenty-first century, the nursing home population has:
grown at about 4 percent per year.
fallen in half.
Equity refers to the __________ of the allocation of goods and services:
Resource based relative value scales (RBRVS):
include no provider liability insurance component.
include constant provider liability insurance for all specialties.
vary the provider liability insurance depending on the particular service.
provide total protection against all malpractice claims.
Suppose a worker earns $14 per hour plus health benefits worth $2 per hour. If the employer withdraws the benefits and offers the worker $17 per hour the worker will be:
better off because $17 is more than the $16 he or she was earning in wages plus benefits.
as well off because he or she is earning more than before.
worse off because previously he or she was not getting the benefits.
worse off because previously he or she was getting the benefits.
If, as a result of a plague, the equilibrium wage level has risen, one can conclude that:
the plague has imposed no costs on society.
supply of labor has decreased more than demand for labor.
demand for labor has increased more than supply of labor.
supply of labor has increased more than the demand of labor.