Economics Homework Help

Describe the demand curve we expect to see in a typical economic market and give a reason why the demand curve would appear that way.

Describe the level of output at which a profit maximizing seller would produce. List and explain two ways in which this profit maximizing approach may not be achievable in health care markets.

Compare the idea of competition in health care with competition in other sectors of the economy. How does health care differ with that “textbook” version of the competitive economic market?

Describe the concept of the physician acting as an agent for the patient and how that agency relationship may impact the health care market.

Differentiate between the concepts of “moral hazard” and “adverse selection” in insurance markets and describe how both influence the health care marketplace.

How does the presence of health insurance impact a consumer in purchasing of health care services when compared to an uninsured person?

What is a horizontal merger? A vertical merger? Provide examples of each.

What is asymmetric information? How does it present a problem to medical providers and health insurers?

Describe the model of the demand for medical care discussed in your text and an example of how it influences health care markets today.

HINT: Think “Grossman”.

The following table represents the costs and benefits of four alternative clinical programs designed to treat a single disease. Benefits are measured in terms of the number of lives saved. Given this data, which is the best treatment in terms of lives saved and which is has the best ICER per life saved?

Program	Cost ($)	Lives Saved
A	100,000	10
B	100,000	12
C	200,000	12
D	200,000	15