CIA15-study-guide11-public-finance Flashcards
(34 cards)
What do governments devote sizable resources to?
Health care
This reflects shortcomings in the private market and the universal importance of good health.
What is preventive care?
Provision of non-urgent medical and dental services that can typically be postponed.
What is acute care?
Care provided when an individual encounters serious illness or injury that typically cannot be postponed.
What percentage of health care spending is accounted for by 1% of the population?
20–25%
What role does the supply side play in health care costs?
Health care providers determine expenditures and costs due to urgency and asymmetry of information.
What creates a demand for medical insurance?
Uncertainty and high costs of medical emergencies.
What is moral hazard in health insurance?
Insurance leads to increased demand for care and reduced sensitivity to health care prices.
What is adverse selection in health insurance?
Individuals most needing care are more likely to purchase insurance, raising costs.
What is one justification for government involvement in health care?
Addressing asymmetric information.
What are positive externalities in health care?
Benefits to the general population, such as vaccinations required for school attendance.
How do governments address distributional concerns in health care?
By establishing public health care facilities and providing insurance for low-income households.
What is the trend in health care expenditures as a share of GDP in the United States from 1970 to 2018?
Increased from 7% to an estimated 17%.
What factor contributes to rising health expenditures related to demographics?
Aging populations and higher elderly dependency ratios.
What impact has new technology had on health care expenditures?
Generally increased outlays due to innovations and new treatment protocols.
What is one way to contain fiscal costs in health care?
Changing provider incentives from fee-for-service to case-based payments.
What is a strategy to reduce demand for health care services?
Increasing co-insurance and reducing subsidies for health insurance.
What is the average net government sector debt forecast for advanced economies by 2030?
Could rise from 77% of GDP in 2011 to 200% of GDP.
What is a significant characteristic of health care spending?
Heaviest spending among the young and elderly.
Fill in the blank: The government’s role in health care should address _______.
[market failures]
True or False: Health care expenditures have remained constant as a percentage of GDP in Singapore since 1995.
False
What is the role of public agencies in government-provided insurance coverage?
Determine which procedures insurance will cover.
What is a significant trend in healthcare expenditure in advanced economies?
Government outlays for health care are likely to rise further due to aging populations, technological developments, and insurance policies.
Which advanced economy has maintained a steady ratio of health care expenditures as a percentage of GDP?
Singapore
What was the percentage of GDP that health care spending represented in the United States in 1970?
About 7%
