U.S. healthcare per person costs twice that of other rich countries. Does the United States overprovide? Do other countries underprovide? What economic concepts do you need to answer? What data might be relevant?

A nurse is preparing to teach the health care team about the concept of critical pathways. Which of the following statements regarding the purpose of a critical pathway should the nurse plan to include?

Marginal external cost​ _______.

A. is an opportunity cost

B. decreases as production increases

C. is what the producer gives up to increase production by one unit

D. is not an opportunity cost because it is expressed in dollars

What obstacles to efficiency does optional health insurance create?

What is the cost of healthcare in the United States compared to that in Canada and the United Kingdom? Do health outcomes correlate with healthcare costs? Can you think of explanations for the facts you’ve just provided?

The healthcare system in the United States costs per person ______ what it costs in other rich countries and U.S. health outcomes rank ______.

A. double; lower

B. half; higher

C. double; higher

D. half; lower

If health insurance were optional, would healthy people be more likely or less likely to buy insurance?

What are the problems that Medicare and Medicaid address and what problems do they cause?

If you have private information that you are a more aggressive driver than your driving record indicates, would you buy collision insurance? If the insurance company offers you a large deductible or a no­claim bonus are you likely to take the offer? Why or why not?

A minimum wage set above the market equilibrium wage rate ______.

A. increases both employment and the quantity of labor supplied

B. decreases unemployment and raises the wage rate of those employed

C. raises the wage rate of those employed and increases the supply of jobs

D. increases unemployment and decreases employment

What are the three alternative approaches for supplementing or replacing the market in healthcare services and how does each address the sources of healthcare market failure?

The private market delivers too little healthcare because ______.

A. insurance companies cannot avoid the problems of moral hazard and adverse selection

B. too many young healthy people buy insurance

C. insurance companies cannot monitor healthcare providers

D. insurance companies profits are too large

Is there an adverse selection problem in a transaction between Mary and an insurance company? Explain why or why not.

Moral hazard arises in the insurance market because ______.

A. buyers of insurance have private information that they can use

B. insurance companies can offer a range of premiums to buyers

C. buyers can opt to take a deductible or a no­claim bonus

D. insurance companies can match premiums to customer risk