1. Discuss why, although direct payments to physicians make up less than the of all health care expenditures, physicians' effect on health care expenditures is much greater than that.

2. The total cost of attending medical school is covered by payments from all of the following sources except

a. tuition payments from students.

b. patient fees.

c. government subsidies or donations to medical schools.

d. the Stark Law

e. National Institutes of Health research funding.

3. One of the best ways to learn how the complicated healthcare system in the U.S. works is to

a.understand how the goal of serving public interests drives the actions of all the parties involved.

b. examine the legal basis of the provision of healthcare in the U.S.

c. follow the trail of money and trace the self-interest of all the parties involved.

d. stay up-to-date with the latest medical research findings.

4. Explain why patients in hospitals are generally insensitive to price, but buyers of health insurance are sensitive to price differences in health insurance policies. Be sure to include an explanation of why insurance companies are very price competitive.