13 Technology and the Price of Health Care Comprehension Questions 1.A Laspeyres price index of health care inflation typically overestimates year to year increases in the price of health TRUE.A Laspeyres price index does not take quality changes or new in- novations into account,so it may indicate rising prices for health care when a given amount of health is actually becoming cheaper. 2.The price of curing Hodgkin's disease has risen substantially between 1950 and2000. FALSE.In the 1950s,the e pric nite,but now it more expensive because so many new treatment options have become avail- able. 3.The fact that total expenditures on heart attack care increased between 1984 and 1991 is good evidence the price of surviving a heart attack increased. FALSE.Total expenditures have been increasing as heart attack care becomes it also b .dI e during this period.Int 4.The Dartmouth Atlas research project finds that health care spending varied13 Technology and the Price of Health Care Comprehension Questions 1. A Laspeyres price index of health care inflation typically overestimates year to year increases in the price of health. TRUE. A Laspeyres price index does not take quality changes or new in￾novations into account, so it may indicate rising prices for health care when a given amount of health is actually becoming cheaper. 2. The price of curing Hodgkin’s disease has risen substantially between 1950 and 2000. FALSE. In the 1950s, the price of a cure was effectively infinite, but now it is finite. Treating Hodgkin’s lymphoma, on the other hand, has gotten much more expensive because so many new treatment options have become avail￾able. 3. The fact that total expenditures on heart attack care increased between 1984 and 1991 is good evidence the price of surviving a heart attack increased. FALSE. Total expenditures have been increasing as heart attack care becomes more expensive, but it also became more effective during this period. In this sense, the price of post-AMI survival decreased. 4. The Dartmouth Atlas research project finds that health care spending varied 1