Discuss what is known about price elasticities

Quiz Questions
Answer 1 of these 2 questions. (Q1)
1. Discuss what is known about price elasticities of demand for various health care
services.
2. Discuss why policy makers need to have elasticity estimates when proposing new
benefit plans.
Answer 1 of these 2 questions. (Q2)
1. Describe the costs and benefits of systems that use non-physicians as primary-care
providers.
2. Describe the economic issues at play when a physician chooses whether to specialize
and when they have chosen to specialize, the economic factors in picking a specialty.
Answer 1 of these 2 questions. (Q3)
1. Comment on the notion of induced demand for physicians and how this relates to the
observation that where there are more hospitals there are higher rates of utilization.
2. Discuss the search process for physician services by patients paying attention to how
patients search, on what they search, what causes patients to switch from one physician to
another and why you can conclude that price differences are more likely to be observed in
larger cities than in smaller ones.
Answer 1 of these 2 questions. (Q4)
1. Define and discuss the notion of the “residual claimant” and why the organization of a
hospital is important in determining who it is likely to be. the matter of the “residual
claimant.”
2. Discuss the data as it relates to the changing nature of what hospitals do.
Answer this question. (Q5)
1. Discuss why the textbook and the lectures say that “Hospitals are odd Ducks” in their
organization. Be sure to include details that are typical in hospitals that would be atypical
anywhere else.
-Text Book: Health Economics Charles E. Phelps 5ed Pearson-Addison Wesley