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Price discrimination for medical services can often be legal. T F

A. Price discrimination for medical services can often be legal. T F

b. Medicare and Medicaid cover about 80 million people?

c. One must be age 65 or older to get Medicare.

d. Everyone in Medicare has access to prescription drugs.

e. Medicaid is available to all people above age 65.

f. Monopsony power rests in the hands of buyers.

g. Medicine in the U.S. operates in a free market.

h. Federal employees operate under a plan run by:
A) Wal Mart
i. Blue Cross Blue Shield
C) Aetna
D) Humana

j. Doctor visits and co-pays rise from $20 to $30 and quantity demanded drops from 5 to 3 visits. Using the traditional method what is the price elasticity of demand:
A) -0.2
B) -0.5
C) -0.8
D) none of the above

k. Gasoline quantity demanded has _____ elasticity with respect to price:
A) Elastic
B) Unitary
C) Inelastic
D) Infinite

1. Discuss the relations of Aspirin& tylenol. Say how they affect the other in economic lingo

Solution Preview

a. Price discrimination for medical services can often be legal. T F
True.
In medical services charges are dependent on income levels. Greater access to these services yield positive externalities and improve overall level of social welfare and the equity.

b. Medicare and Medicaid cover about 80 million people?
True.

c. One must be age 65 or older to get Medicare.
True. As one attains the age of 65, he /she is automatically eligible for the Medicare. However, it is ...

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