2 Health Economics Answer Key widely between different American cities in the early 2000s,and that Medi- care enrollees in high-spending cities were a lot healthier as a result. FALSE.The Atlas does show wide variation ir ndin levels but it also 5.The Dartmouth Atlas results are proof that health is easier and/or cheaper to produce in some American cities than others. FALSE.That is one interpretation of the results,but it is also possible that health is equally easy to produce everywhere,but certain regions spend more on wasteful care due to supply-sensitive demand or local medical culture. 6.High health care expenditures in certain citie and states have been inter preted as evidence for supply-sensitive care and heterogeneous local medical cultures. TRUE.These factors could explain why certain regions spend more on care but do not achieve better outcomes 7.If medicare patients in Boston are paying more per capita for a hip replace- ment than medicare patients in Boise for the same procedure,but health out- comes are exactly equal,then this is evidence that Boston is wasteful in their health spending FALSE.Boston may have a lower health production function than Boise does and therefore may need to spend more money in order to reach the same level of health as Boise. 8.One rea son why total health expenditures are rising is because of an aging population. TRUE.More people are getting older and therefore sicker,causing an in- crease in demand for medical technology and treatments. Bhattacharya,Hyde &Tu2013 2 2 | Health Economics Answer Key widely between different American cities in the early 2000s, and that Medi￾care enrollees in high-spending cities were a lot healthier as a result. FALSE. The Atlas does show wide variation in spending levels, but it also finds that more expensive treatment did not tend to result in better outcomes. 5. The Dartmouth Atlas results are proof that health is easier and/or cheaper to produce in some American cities than others. FALSE. That is one interpretation of the results, but it is also possible that health is equally easy to produce everywhere, but certain regions spend more on wasteful care due to supply-sensitive demand or local medical culture. 6. High health care expenditures in certain cities and states have been inter￾preted as evidence for supply-sensitive care and heterogeneous local medical cultures. TRUE. These factors could explain why certain regions spend more on care but do not achieve better outcomes. 7. If medicare patients in Boston are paying more per capita for a hip replace￾ment than medicare patients in Boise for the same procedure, but health out￾comes are exactly equal, then this is evidence that Boston is wasteful in their health spending. FALSE. Boston may have a lower health production function than Boise does and therefore may need to spend more money in order to reach the same level of health as Boise. 8. One reason why total health expenditures are rising is because of an aging population. TRUE. More people are getting older and therefore sicker, causing an in￾crease in demand for medical technology and treatments. ￾c Bhattacharya, Hyde & Tu 2013 2