Reference book: Health Economics by Jay Bhattacharya, Timothy Hyde, & Peter Tu (
ID: 1117817 • Letter: R
Question
Reference book: Health Economics by Jay Bhattacharya, Timothy Hyde, & Peter Tu (Ctrl) . PART 2: TRUE-FALSE (4 pts each): Please indicate whether the statement is true or false Explain your reasoning for your answer (in 2-3 sentences if possible). Right answer without an explanation will receive only 1 out of 4 points. 7. If inpatient and outpatient care are substitutes, then health insurance availability could 8. Generally, hospitals competing to attract emergency room patients since this type of 9. A risk averse and rational individual choose full coverage if insurance is fair. T/F? Why? reduce hospital admissions through better outpatient care T/F. Why? hospital service is the most lucrative one. T/F? Why? 10. The literature on the effect of competition on hospital quality indicates: increases quality when prices are set administratively. T/F Why? 11. In health insurance markets asymmetric information between agents leads to adverse selection. T/F? With an example, explain how asymmetric information in health insurance context does or does not lead to adverse selection. 12. Universal health insurance coverage solves adverse selection problem. T 13. Assuming health problems can emerge at any age, private markets can solve adverse /F? Why? selection problem. T/F? Why? 14. Without an individual mandate, non group insurance market (Health insurance marketplace) has greater chance to experience an adverse selection death spiral. T/F? Why? hazard in health insurance markets. T/F? Why? of insurance markets. T/F? Why? utility and decreases overall healthcare costs in the society. T/F? Why? 15. Advantageous selection can be one of the reasons of why we do not observe moral 16. So far, researchers observed predictions of asymmetric information models in all types 17. A fair and partial insurance is more preferable as it maximizes risk averse individual's 18. In a pooling equilibrium, the insurance company offers two contracts that results in high-risk and low risk types choose different contracts. T/F? Why? 00 , 0 «IxI NI @,Explanation / Answer
Answer 7. True. As both inpatients and outpatients are substitutes then better outpatient care will automaically reduce hospital admissions. As in case of substitute goods one good can be used in place of another because the consumer sees them as similar good which will not affect the utility.
Answer 8. True. As in case of emergency a patient will alwasy go for the hospital which has the best service. Also the patient in this case has no option but to spend oney on treatment thus it proves to the most lucrative one.
Answer 9. True. As in case of risk averse and rational they will choose such polcy in which thier is almost no risk present and they will choose that policy which is the most optimum one. Thus, eliminating almost all the risks.
Answer 10. True. When competition increases then firms try thier best to sell their product or service with good quality to have a competitive edge.
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