Question 1

According to the Case in Point on corn, the Energy Policy Act of 2005 called for _____ production of ethanol using _____.

Accepted Answer

A)  increased; loan guarantees, support for research, and tax credits 
B)  increased; price ceilings 
C)  decreased; loan guarantees, support for research, and tax credits 
D)  decreased; price floors 
A)  increased; loan guarantees, support for research, and tax credits 
B)  increased; price ceilings 
C)  decreased; loan guarantees, support for research, and tax credits 
D)  decreased; price floors A

Question 2

The Oregon Plan in the 1990s for the provision of health care to people living below the poverty line generally increased the number and type of procedures for which they were eligible.

Accepted Answer

A) True 
 B)False  False

Question 3

Use the following to answer questions .
Exhibit: Supply and Demand in Agriculture  
-(Exhibit: Supply and Demand in Agriculture) To help farmers:

Accepted Answer

A)  a price floor would be set at P4, causing a surplus of Q3 - Q0. 
B)  a price floor would be set at P2, causing a surplus of Q2 - Q0. 
C)  a price ceiling would be set at P4, causing a surplus of Q2 - Q1. 
D)  a price floor would be set at P1, causing a shortage of Q3 - Q0. 
A)  a price floor would be set at P4, causing a surplus of Q3 - Q0. 
B)  a price floor would be set at P2, causing a surplus of Q2 - Q0. 
C)  a price ceiling would be set at P4, causing a surplus of Q2 - Q1. 
D)  a price floor would be set at P1, causing a shortage of Q3 - Q0. A

Question 4

Of the following, which would result in increasing demand in the health-care industry?

Accepted Answer

A)  an increase in the spread of contagious diseases 
B)  an older population 
C)  increasing incomes 
D)  All of the above are demand factors that would result in higher demand. 
A)  an increase in the spread of contagious diseases 
B)  an older population 
C)  increasing incomes 
D)  All of the above are demand factors that would result in higher demand.

Question 5

Price ceilings which lead to shortages will impose costs on society because they:

Accepted Answer

A)  will lead to waiting lines. 
B)  may result in black market prices, which are higher than the market-determined price would be. 
C)  lead to a smaller quantity offered on the market. 
D)  do all of the above. 
A)  will lead to waiting lines. 
B)  may result in black market prices, which are higher than the market-determined price would be. 
C)  lead to a smaller quantity offered on the market. 
D)  do all of the above.

Question 6

A market price support policy for crops establishes a price floor, which:

Accepted Answer

A)  decreases the price paid by consumers. 
B)  does not change the price paid by consumers. 
C)  increases the price received by farmers. 
D)  decreases the price received by farmers. 
A)  decreases the price paid by consumers. 
B)  does not change the price paid by consumers. 
C)  increases the price received by farmers. 
D)  decreases the price received by farmers.

Question 7

A cost that farm subsidies and price floors imposes on the rest of the economy is:

Accepted Answer

A)  excessively mobile farm resources. 
B)  higher consumer commodity prices. 
C)  less government-funded agricultural research. 
D)  efficient farmers that leave the farming industry. 
A)  excessively mobile farm resources. 
B)  higher consumer commodity prices. 
C)  less government-funded agricultural research. 
D)  efficient farmers that leave the farming industry.

Question 8

Rent controls set a price ceiling below the equilibrium price and therefore:

Accepted Answer

A)  quantity supplied exceeds the quantity demanded. 
B)  quantity demanded exceeds the quantity supplied. 
C)  a surplus of rental units will result. 
D)  poor people will obviously and clearly be helped. 
A)  quantity supplied exceeds the quantity demanded. 
B)  quantity demanded exceeds the quantity supplied. 
C)  a surplus of rental units will result. 
D)  poor people will obviously and clearly be helped.

Question 9

Discuss the arguments in favor of and against the U.S. government's financial support of corn-based ethanol.

Accepted Answer

Arguments in favor of the U.S. governmen

Question 10

Use the following to answer questions .
Exhibit: Rent Controls  
-(Exhibit: Rent Controls) Without rent controls, the equilibrium rent is _______ and the equilibrium quantity is _______ .

Accepted Answer

A)  Rent2; Q1  
B)  Rent1; Q1  
C)  Rent2; Q2  
D)  Rent3; Q3  
A)  Rent2; Q1  
B)  Rent1; Q1  
C)  Rent2; Q2  
D)  Rent3; Q3

Question 11

Which of the following would lead to an increase in the supply of health care?

Accepted Answer

A)  An increase in the number of people insured. 
B)  Increased tax subsidies for health care. 
C)  An increase in the productivity of doctors. 
D)  All of the above would increase the supply of health care. 
A)  An increase in the number of people insured. 
B)  Increased tax subsidies for health care. 
C)  An increase in the productivity of doctors. 
D)  All of the above would increase the supply of health care.

Question 12

Use the following to answer questions.
Exhibit: Third-Party Payers  
-(Exhibit: Third-Party Payers) Based on the exhibit, and assuming there are no third-party payers, the:

Accepted Answer

A)  equilibrium price for physician office visits is $80. 
B)  equilibrium quantity is 3 million physician office visits per week. 
C)  total amount spent on physician office visits per week at the equilibrium price is $40 million. 
D)  equilibrium price for physician office visits is $40. 
A)  equilibrium price for physician office visits is $80. 
B)  equilibrium quantity is 3 million physician office visits per week. 
C)  total amount spent on physician office visits per week at the equilibrium price is $40 million. 
D)  equilibrium price for physician office visits is $40.

Question 13

Explain the reasons for the significant escalation in health-care costs over the last several decades.

Accepted Answer

There are several reasons for the signif

Question 14

Technological improvements in the health care industry have contributed to the increase in health care costs.

Accepted Answer

A) True 
 B)False

Question 15

A price ceiling will have no effect if:

Accepted Answer

A)  it is set above the equilibrium price. 
B)  the equilibrium price is above the price ceiling. 
C)  set below the equilibrium price. 
D)  it creates a shortage. 
A)  it is set above the equilibrium price. 
B)  the equilibrium price is above the price ceiling. 
C)  set below the equilibrium price. 
D)  it creates a shortage.

Question 16

In the 1960s the dominant maker of mainframe computers was:

Accepted Answer

A)  IBM. 
B)  Apple Computer. 
C)  Compaq. 
D)  GM. 
A)  IBM. 
B)  Apple Computer. 
C)  Compaq. 
D)  GM.

Question 17

A firm owned by one individual is called a:

Accepted Answer

A)  corporation. 
B)  partnership. 
C)  sole proprietorship. 
D)  none of the above. 
A)  corporation. 
B)  partnership. 
C)  sole proprietorship. 
D)  none of the above.

Question 18

As the fraction of health-care costs paid by consumers falls, their quantity of health-care services consumed increases.

Accepted Answer

A) True 
 B)False

Question 19

In terms of equity, existing farm policies tend to help:

Accepted Answer

A)  all farmers equally. 
B)  none of the farmers. 
C)  poor farmers more than wealthy farmers. 
D)  wealthy farmers more than poor farmers. 
A)  all farmers equally. 
B)  none of the farmers. 
C)  poor farmers more than wealthy farmers. 
D)  wealthy farmers more than poor farmers.

Question 20

One source of high health-care costs is the:

Accepted Answer

A)  relatively small fraction of health-care expenditures paid directly by patients. 
B)  relatively small fraction of health-care expenditures paid by third-party payers. 
C)  deficiency in the availability of diagnostic tests. 
D)  excessive competition in the market for health care. 
A)  relatively small fraction of health-care expenditures paid directly by patients. 
B)  relatively small fraction of health-care expenditures paid by third-party payers. 
C)  deficiency in the availability of diagnostic tests. 
D)  excessive competition in the market for health care.

According to the Case in Point on corn, the Energy Policy Act of 2005 called for _ production of ethanol using _.

The Oregon Plan in the 1990s for the provision of health care to people living below the poverty line generally increased the number and type of procedures for which they were eligible.

Use the following to answer questions . Exhibit: Supply and Demand in Agriculture -(Exhibit: Supply and Demand in Agriculture) To help farmers:

Of the following, which would result in increasing demand in the health-care industry?

Price ceilings which lead to shortages will impose costs on society because they:

A market price support policy for crops establishes a price floor, which:

A cost that farm subsidies and price floors imposes on the rest of the economy is:

Rent controls set a price ceiling below the equilibrium price and therefore:

Discuss the arguments in favor of and against the U.S. government's financial support of corn-based ethanol.

Use the following to answer questions . Exhibit: Rent Controls -(Exhibit: Rent Controls) Without rent controls, the equilibrium rent is _ and the equilibrium quantity is _ .

Which of the following would lead to an increase in the supply of health care?

Use the following to answer questions. Exhibit: Third-Party Payers -(Exhibit: Third-Party Payers) Based on the exhibit, and assuming there are no third-party payers, the:

Explain the reasons for the significant escalation in health-care costs over the last several decades.

Technological improvements in the health care industry have contributed to the increase in health care costs.

A price ceiling will have no effect if:

In the 1960s the dominant maker of mainframe computers was:

A firm owned by one individual is called a:

As the fraction of health-care costs paid by consumers falls, their quantity of health-care services consumed increases.

In terms of equity, existing farm policies tend to help:

One source of high health-care costs is the:

Economics: the Study of Choice

Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

Exam 4: Applications of Supply and Demand

According to the Case in Point on corn, the Energy Policy Act of 2005 called for _____ production of ethanol using _____.

The Oregon Plan in the 1990s for the provision of health care to people living below the poverty line generally increased the number and type of procedures for which they were eligible.

Use the following to answer questions . Exhibit: Supply and Demand in Agriculture -(Exhibit: Supply and Demand in Agriculture) To help farmers:

Of the following, which would result in increasing demand in the health-care industry?

Price ceilings which lead to shortages will impose costs on society because they:

A market price support policy for crops establishes a price floor, which:

A cost that farm subsidies and price floors imposes on the rest of the economy is:

Rent controls set a price ceiling below the equilibrium price and therefore:

Discuss the arguments in favor of and against the U.S. government's financial support of corn-based ethanol.

Use the following to answer questions . Exhibit: Rent Controls -(Exhibit: Rent Controls) Without rent controls, the equilibrium rent is _______ and the equilibrium quantity is _______ .

Which of the following would lead to an increase in the supply of health care?

Use the following to answer questions. Exhibit: Third-Party Payers -(Exhibit: Third-Party Payers) Based on the exhibit, and assuming there are no third-party payers, the:

Explain the reasons for the significant escalation in health-care costs over the last several decades.

Technological improvements in the health care industry have contributed to the increase in health care costs.

A price ceiling will have no effect if:

In the 1960s the dominant maker of mainframe computers was:

A firm owned by one individual is called a:

As the fraction of health-care costs paid by consumers falls, their quantity of health-care services consumed increases.

In terms of equity, existing farm policies tend to help:

One source of high health-care costs is the:

Economics: the Study of Choice

Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

According to the Case in Point on corn, the Energy Policy Act of 2005 called for _ production of ethanol using _.

Use the following to answer questions . Exhibit: Rent Controls -(Exhibit: Rent Controls) Without rent controls, the equilibrium rent is _ and the equilibrium quantity is _ .