1 Exampromax - Stuvia US 2025/2026
HEALTHCARE ECONOMICS MIDTERM
REVIEW/ACTUAL EXAM QUESTIONS &
ANSWERS RATED 100% CORRECT!! A+
What proportion of the GDP is spent on healthcare?
Ans: 0.18
arc elasticity of demand
Ans: price elasticity calculated over a range of prices
True of False: Healthcare has an ELASTIC demand
© 2025 Assignment Expert
Ans: False: Healthcare has an INELASTIC demand. Any value between 0 and -1
Exampromax - Stuvia US
has an inelastic demand. This proposes that while healthcare demand does
change to price, the change is not significant enough for it to be considered
elastic.
does price for care affect health?
Ans: Price alone does NOT affect ones health. However, other factors may
contribute to it affecting health such as low-income, or having high blood
pressure).
The Grossman Model (3 components)
Ans: Health plays as a:
Consumption Good
An input into Production
A form of Stock
Utility
Ans: Usefulness; capable of satisfying wants and needs
H and X relationship (Ut=U(Ht, Xt))
Ans: H represents level of health
X represents home goods that contribute to usefulness and satisfaction (i.e video
games, time with friends)
, 2 Exampromax - Stuvia US 2025/2026
Health Disparity
Ans: differences in health -- incidence, prevalence, mortality, and burden of
disease -- between specific populations
True or False: Educated individuals are more likely to live longer compared
to HS dropouts
Ans: TRUE
Why do disparities exist?
Ans: Early life events
Income levels
Stress of being poor
Work Capacity
© 2025 Assignment Expert
Impatience
Adherence to Medical Advice
Exampromax - Stuvia US
Which of the following is incorrect about US healthcare?
Ans: The projected health care spending as a share of GDP in 2025 is lower than
the current share
For every 10 percent increase in price of health care services, demand falls
by 3 percent. How much is the own price elasticity of demand for
healthcare?
Ans: Answer: -0.3
What is a cadillac plan?
Ans: A very generous employer-sponsored health insurance plan
Demand for healthcare is not
Ans: Vertical
Which option is NOT true on the price of healthcare?
Ans: It affects healthy people
Which factor effects health?
HEALTHCARE ECONOMICS MIDTERM
REVIEW/ACTUAL EXAM QUESTIONS &
ANSWERS RATED 100% CORRECT!! A+
What proportion of the GDP is spent on healthcare?
Ans: 0.18
arc elasticity of demand
Ans: price elasticity calculated over a range of prices
True of False: Healthcare has an ELASTIC demand
© 2025 Assignment Expert
Ans: False: Healthcare has an INELASTIC demand. Any value between 0 and -1
Exampromax - Stuvia US
has an inelastic demand. This proposes that while healthcare demand does
change to price, the change is not significant enough for it to be considered
elastic.
does price for care affect health?
Ans: Price alone does NOT affect ones health. However, other factors may
contribute to it affecting health such as low-income, or having high blood
pressure).
The Grossman Model (3 components)
Ans: Health plays as a:
Consumption Good
An input into Production
A form of Stock
Utility
Ans: Usefulness; capable of satisfying wants and needs
H and X relationship (Ut=U(Ht, Xt))
Ans: H represents level of health
X represents home goods that contribute to usefulness and satisfaction (i.e video
games, time with friends)
, 2 Exampromax - Stuvia US 2025/2026
Health Disparity
Ans: differences in health -- incidence, prevalence, mortality, and burden of
disease -- between specific populations
True or False: Educated individuals are more likely to live longer compared
to HS dropouts
Ans: TRUE
Why do disparities exist?
Ans: Early life events
Income levels
Stress of being poor
Work Capacity
© 2025 Assignment Expert
Impatience
Adherence to Medical Advice
Exampromax - Stuvia US
Which of the following is incorrect about US healthcare?
Ans: The projected health care spending as a share of GDP in 2025 is lower than
the current share
For every 10 percent increase in price of health care services, demand falls
by 3 percent. How much is the own price elasticity of demand for
healthcare?
Ans: Answer: -0.3
What is a cadillac plan?
Ans: A very generous employer-sponsored health insurance plan
Demand for healthcare is not
Ans: Vertical
Which option is NOT true on the price of healthcare?
Ans: It affects healthy people
Which factor effects health?
