Chapter 5: The Economics of Health Care – Flashcards
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The Patient Protection and Affordable Care Act (ACA)
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Was recently enacted in 2010 to significantly reorganize the U.S. Health care system.
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The PPACA absolutely does not...
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Make all health care professionals employees of the federal government.
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The PPACA...
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Expands eligibility for Medicare and establishes an Advisory Board with the power to reduce Medicare payments if needed
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The PPACA...
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Increases the regulation of health insurance companies
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The PPACA...
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Requires every resident of the United States to obtain health insurance or be fined
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As a percentage of GDP, health care spending in the United States has been...
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Growing rapidly
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Compared to increase in health care spending per person in other high-income countries, the increase in health care spending per person in the United States have grown...
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More rapidly
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Current rends in the U.S. Health care spending, if not altered, will cause the growth of federal government spending in the United States to...
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Accelerate
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To explain the rapid increase in health care soending in the United States, economists have cited the...
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...Slow rate of growth of labor productivity in health care, an aging U.S. population, advances in medical technology and new prescription drugs, and distorted economic incentives for consumers and suppliers of health care.
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Those who critize ACA for too little government involvement...
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Do not assert that the system under ACA will require rationing.
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Economists and policymakers favoring market-based reforms critize ACA because it...
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Fails to inject sufficient competition into the health care market, it makes the market for health care less like the markets for other good and services, and it will continue the present's system's failure to send accurate signals to consumers and suppliers
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An improvement in medical technology that results in an increase in the life expectanxy for ppl. 65 yrs. of age and older can be expected to...
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Increase health care costs.
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Older ppl. require...
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Increasing amounts of health care
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Health care is _______ good.
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Normal. As income per person increases, so does health care spending per person.
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If advances in medical technology allow better and less costly treatment of disesase and cures for diseases that are now expensive to treat, expendittures on health care could ________ as incomes _________; health care would then be considered an _______ inferior good.
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Decline, rise, inferior
