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Checkpoint quiz · Healthcare Economics

Healthcare Economics: Checkpoint 2

Covers universal healthcare systems, moral hazard, preventive care economics, and why healthcare costs rise faster than inflation.

Five questions on universal healthcare systems, moral hazard, preventive care economics, and rising healthcare costs.

Question 1 of 5 In a single-payer system, who typically owns the hospitals and employs the doctors?

The government owns and employs almost everything Hospitals and doctors are often still private, but one government payer covers the bills Private insurers own everything Patients directly own the hospitals

Single-payer describes who pays, not who provides care - Canada's system keeps private doctors and hospitals while routing billing through one government payer.

Question 2 of 5 What is moral hazard in the context of health insurance?

Insurers acting dishonestly The tendency to use more care once its cost feels insulated by insurance Patients lying about symptoms Doctors overbilling on purpose

Question 3 of 5 What is the main purpose of a deductible or copayment?

To increase insurer profit only To preserve some price sensitivity and dampen moral hazard To fund preventive care specifically To pay for administrative overhead

Question 4 of 5 Why doesn't all preventive care 'pay for itself' in net savings?

Preventive care never improves health outcomes Screening many healthy people to catch a few cases can cost more than it saves, even though vaccination programs are often highly cost-effective Insurance never covers preventive care Doctors refuse to perform screenings

Question 5 of 5 Baumol's cost disease helps explain why healthcare costs rise partly because:

Doctors are becoming less skilled Labor-intensive care resists the productivity gains seen in other industries, even as wages rise economy-wide Patients demand fewer services over time Hospitals are required to lower prices annually

Like a string quartet that still needs the same musician-hours to perform, an hour of skilled medical care resists automation, so its cost tends to rise alongside wages generally.

← Back to Why Healthcare Costs Keep Rising Faster Than Inflation Next lesson → Medical Debt and Its Ripple Effects

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