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a) Medicare spends approximately the same amount per person covered as private insurers do for similar insurance coverage. The best explanation for this is that

a) Medicare spends approximately the same amount per person covered as private insurers do for similar insurance coverage. The best explanation for this is that

  1. it has lower administrative costs, pays health care providers less for similar services, but covers a less healthy population.
  2. it has higher administrative costs, pays health care providers more for similar services, but covers a healthier population.
  3. it has lower administrative costs, pays health care providers more for similar services and covers a similar population.4
  4. it has higher administrative costs, pays health care providers less for similar services and covers a similar population.
  5. it has similar administrative costs, pays health care providers about the same as private insurers, but it is partially financed by payroll taxes.

b) Open the file: Quiz Q8 GRAPHS and refer to the appropriate graph.The price of health service,P, initially equals the constant SMC. Then, due to COVID-19, health services are stretched thin, nearly used to capacity, as represented by a change in the SMC curve.If the SMB curve does not change, the deadweight loss from insurance with thecopayin the graph

  1. changes from the area of triangle A to something bigger.
  2. changes from the area of triangle B to something bigger.
  3. changes from the area of triangle C to something bigger.
  4. changes from the area of triangle A to something smaller.
  5. changes from the area of triangle B to something smaller.
  6. changes from the area of triangle C to something smaller.

c) Open the file: Quiz Q8 GRAPHS and refer to the appropriate graph.Suppose that the price of medical treatment isP, but the social marginal cost of treatment, SMC, equals the out-of-pocket cost for insured patients with the demand curve (which is the SMB curve) in the graph.Then the deadweight loss from the insurance coverage equals

  1. the area of triangle A.
  2. the area of triangle B.
  3. the area of triangle C.
  4. 0.
  5. none of the above.

d) Choose the singleBESTanswer.

Employers' payments for their workers' health insurance (ins) are not counted as part of the workers' income for tax purposes.This exclusion tends toreduce

  1. lower-paid workers' taxes more, since they pay less in other taxes than what higher-paid workers pay.
  2. lower-paid workers' taxes more, since they are less likely to get health ins through their employer.
  3. higher-paid workers' taxes more, since they have higher marginal inc tax rates.
  4. higher-paid workers' taxes more, since their employers tend to pay more for their health ins.
  5. Both c and d are correct.
  6. The other answers are incorrect.

e) ChooseALLthe correct answers.

The Affordable Care Act (ACA) reduced the number of Americans without health insurance by

  1. expanding Medicaid insurance coverage in a majority of states
  2. expanding Medicare insurance coverage in a majority of states
  3. subsidizing health insurance purchases by buyers with incomes up to 4 times the poverty level.
  4. reducing taxes on firms that offer health insurance to their employees.
  5. none of the above.

image text in transcribed
Suppose that the price of medical treatment is P, but the social marginal cost of treatment, SMC, equals the out-of-pocket cost for insured patients with the demand curve (which is the SMB curve) in the graph. Then the deadweight loss from the insurance coverage equals . the area of triangle A. . the area of triangle B. . the area of triangle C. . 0 . none of the above. C health service unrelated to COVlD-19 The price of health service, P, initially equals the constant SMC. Then, due to COVlD-19, health services are stretched thin, nearly used to capacity, as represented by a change in the SMC curve. If the SMB curve does not change, the deadweight loss from insurance with the copay in the graph . changes from the area of triangle A to something bigger. . changes from the area of triangle B to something bigger. . changes from the area of triangle C to something bigger. . changes from the area of triangle A to something smaller. . changes from the area of triangle B to something smaller. changes from the area of triangle C to something smaller

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