See what kinds of thermometers you can find by taking a look around your house. Most homes have thermometers for use in the kitchen, outdoors, in healthcare settings, or indoors. Make the following notes for each thermometer: a.What scales of temperature are used? b. What is each thermometer's temperature range? c. What is the lowest temperature variation that each thermometer can detect? d. For each thermometer, what altering physical characteristic is employed to indicate a change in temperature?

"Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only$20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the$80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undertake.)

Draw the demand curve in the market for medical care. (In your diagram, the horizontal axis should represent the number of medical procedures.) Show the quantity of procedures demanded if each procedure has a price of $100."

According to the Gallup Poll, $27\%$ of U.S. adults have high levels of cholesterol. Gallup reports that such elevated levels "could be financially devastating to the U.S. healthcare system" and are a major concern to health insurance providers. According to recent analyses, cholesterol levels in healthy U.S. adults average about $215 \mathrm{mg} / \mathrm{dL}$ with a standard deviation of about $30 \mathrm{mg} / \mathrm{dL}$ and are roughly Normally distributed. If the cholesterol levels of a sample of 42 healthy U.S. adults are taken,

c) What would its standard deviation be?

MGM Resorts International owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $415,654,000 and allowance for doubtful accounts of$93,760,000. Johnson & Johnson manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Johnson & Johnson reported accounts receivable of $10,114,000,000 and allowance for doubtful accounts of$340,000,000.

a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for MGM Resorts International. Round to one decimal place.

GfK Roper Consulting gathers information on consumer preferences around the world to help companies monitor attitudes about health, food, and healthcare products. They requested people in many different cultures how they felt about the following statement: I try to avoid eating fast foods. In a random sample of 800 respondents, 411 people were 35 years old or younger, and, of those, 197 agreed ( completely or somewhat), with the statement. Of the 389 people over 35 years old, 246 people agreed with the statement.

a) Is there proof that the percentage of people avoiding fast food is different in the two age groups?

$$\textbf{ Problem Solving}\text{\ You are a healthcare worker in a clinic in the tropics. More people than usual have recently come into the clinic suffering from malaria.}$$

$$\textbf{\ \ a.}\text{ What are some questions you could ask your patients to try to track the source of this outbreak of malaria?}$$

$$\textbf{\ \ b.}\text{ What suggestions can you make to help reduce the occurrence of malaria in this area?}$$

In 2002, the average height of a woman aged 20–74 years was 64 inches with an increase of approximately 1 inch from 1960 (http://usgovinfo.about.com/od/healthcare). Suppose the height of a woman is normally distributed with a standard deviation of two inches. a. What is the probability that a randomly selected woman in this population is between 58 inches and 70 inches? b. What are the quartiles of this distribution? c. Determine the height that is symmetric about the mean that includes 90% of this population. d. What is the probability that five women selected at random from this population all exceed 68 inches?

When the price of an essential commodity (such as healthcare) decreases rapidly, consumption increases slowly at first. If the price continues to drop, However, a "tipping" point may be reached, at which consumption takes a sudden substantial increase. Suppose that the accompanying graph shows the consumption of a certain antibiotic, $C(t)$, in millions of units. We assume that the price is decreasing rapidly. Here $t$ is the time in months after the price began decreasing. Use the graph to find the following.
a. $\lim _{t \rightarrow 12} C(t)$]
b. $\lim _{t \rightarrow 16} C(t)$
c. $C(16)$
d. the tipping point (in months)

Merck & Co., Inc. and Johnson & Johnson are two leading producers of healthcare products. Each has considerable assets, and each expends considerable funds each year toward the development of new products. The development of a new healthcare product is often very expensive, and risky. New products frequently must undergo considerable testing before approval for distribution to the public. For example, it took Johnson & Johnson 4 years and $200 million to develop its 1-DAY ACUVUE contact lenses. Below are some basic data compiled from the financial statements of these two companies.

$$\begin{array}{lccc} {\text{(all dollars in millions)}}&\underline{\hspace{2pt}\text{Johnson \& Johnson}\hspace{2pt}}&\underline{\hspace{15pt}\text{Merck}\hspace{15pt}}\\ \text{Total assets}&\$53,317&\$42,573\\ \text{Total revenue}&47,348&22,939\\ \text{Net income}&8,509&5,813\\ \text{Research and development expense}&5,203&4,010\\ \text{Intangible assets}&11,842&2,765\\ \end{array}$$

Instructions

a. What kinds of intangible assets might a healthcare products company have? Does the composition of these intangibles matter to investors-that is, would it be perceived differently if all of Merck's intangibles were goodwill than if all of its intangibles were patents?

b. Suppose the president of Merck has come to you for advice. He has noted that by eliminating research and development expenditures the company could have reported $4 billion more in net income. He is frustrated because much of the research never results in a product, or the products take years to develop. He says shareholders are eager for higher returns, so he is considering eliminating research and development expenditures for at least a couple of years. What would you advise?

c. The notes to Merck's financial statements note that Merck has goodwill of$1.1 billion. Where does recorded goodwill come from? Is it necessarily a good thing to have a lot of goodwill on a company's books?

Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people. Two closely watched statistics are the unemployment rate and the employmentpopulation ratio (calculated as the percentage of the adult population that is employed). Explain what happens to statistic in the following scenario. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?

Advances in healthcare prolong the life of many retirees.

Keystone Healthcare Corp. is proposing to spend $260,820 on an eight-year project that has estimated net cash flows of$42,000 for each of the eight years.

a. Compute the net present value, using a rate of return of 10%. Use the present value of an annuity of $1 table in the chapter.

b. Based on the analysis prepared in part (a), is the rate of return (1) more than 10%, (2) 10%, or (3) less than 10%? Explain.

c. Determine the internal rate of return by computing a present value factor for an annuity of$1 and using the present value of an annuity of $1 table presented in the text.

"Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only$20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the$80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undertake.)

Economists often blame the health insurance system for excessive use of medical care. Given your analysis, why might the use of care be viewed as “excessive”?"

Identify each of the following as a macroeconomic worry or a microeconomic concern, and explain your choice. a. Based on anticipated future consumer demand, Ford Motor Company is considering increasing the production of full-size SUVs. b. As a way to reduce the national budget, Congress is considering the possibility of enacting a value-added tax. c. The Federal Reserve makes the announcement that it is raising the discount rate in an effort to contain the rate of inflation. d. The Bureau of Labor Statistics estimates that from 2008 to 2018, the number of workers in the healthcare sector would rise by 22.5%.

Abbreviations used in general disorders of the gastrointestinal system. Healthcare providers often use abbreviations when communicating verbally and in writing. Fill in the blank with the correct abbreviation from the provided word bank. LO 5.3, 5.A, 5.E

IBD IBS GI The patient has been diagnosed with ulcerative colitis, and therefore has a form of .