Question 1

Farm products are normal goods, which means that as:

Accepted Answer

A)  incomes go up, the demand curve shifts to the right. 
B)  incomes go up, the supply curve shifts to the right. 
C)  price falls, the quantity demanded decreases. 
D)  as incomes increase, people buy less. 
A)  incomes go up, the demand curve shifts to the right. 
B)  incomes go up, the supply curve shifts to the right. 
C)  price falls, the quantity demanded decreases. 
D)  as incomes increase, people buy less.

Question 2

Eliminating third-party payer systems is most likely to ________ the quantity of health care ________.

Accepted Answer

A)  increase; demanded 
B)  decrease; demanded 
C)  have no effect on; demanded 
D)  increase; supplied 
A)  increase; demanded 
B)  decrease; demanded 
C)  have no effect on; demanded 
D)  increase; supplied

Question 3

A maximum legal price is called:

Accepted Answer

A)  a price support. 
B)  a price floor. 
C)  a price ceiling. 
D)  the parity price. 
A)  a price support. 
B)  a price floor. 
C)  a price ceiling. 
D)  the parity price.

Question 4

In 1960, the percentage of total output the United States devoted to health care was about ________ percent.

Accepted Answer

A)  2 
B)  5 
C)  10 
D)  13 
A)  2 
B)  5 
C)  10 
D)  13

Question 5

In the market for personal computers and in the stock market:

Accepted Answer

A)  supply and demand shifts change prices and quantities. 
B)  persistent shortages and surpluses rarely exist. 
C)  in response to shifts in demand and supply, equilibrium is restored quickly. 
D)  all of the above are true. 
A)  supply and demand shifts change prices and quantities. 
B)  persistent shortages and surpluses rarely exist. 
C)  in response to shifts in demand and supply, equilibrium is restored quickly. 
D)  all of the above are true.

Question 6

In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was:

Accepted Answer

A)  mainly a function of resource prices. 
B)  primarily due to technological change and an increase in the number of sellers. 
C)  a result of a dramatic decrease in U.S. wages. 
D)  a result of a dramatic decrease in foreign wages. 
A)  mainly a function of resource prices. 
B)  primarily due to technological change and an increase in the number of sellers. 
C)  a result of a dramatic decrease in U.S. wages. 
D)  a result of a dramatic decrease in foreign wages.

Question 7

Which of the following statements are true about price controls used by some local governments?

Accepted Answer

A)  Price controls are imposed to increase market efficiency. 
B)  Price controls seem to be a very effective way to reduce inequities. 
C)  Price controls are put into place when it is thought that the market price is in some way unfair or inequitable. 
D)  All of the above statements are true. 
A)  Price controls are imposed to increase market efficiency. 
B)  Price controls seem to be a very effective way to reduce inequities. 
C)  Price controls are put into place when it is thought that the market price is in some way unfair or inequitable. 
D)  All of the above statements are true.

Question 8

Use the following to answer questions .
Exhibit: The Market for Health Care  
-(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers, the:

Accepted Answer

A)  equilibrium price for health-care services is P2. 
B)  equilibrium quantity is Q2. 
C)  total amount spent on health-care services at the equilibrium price is OP3BQ2. 
D)  equilibrium price for health-care services is P1. 
A)  equilibrium price for health-care services is P2. 
B)  equilibrium quantity is Q2. 
C)  total amount spent on health-care services at the equilibrium price is OP3BQ2. 
D)  equilibrium price for health-care services is P1.

Question 9

Use the following to answer questions.
Exhibit: Third-Party Payers  
-(Exhibit: Third-Party Payers) Three million physician office visits per week are available at a price of __________ per visit:

Accepted Answer

A)  $60 
B)  $40 
C)  $20 
D)  none of the above prices are correct. 
A)  $60 
B)  $40 
C)  $20 
D)  none of the above prices are correct.

Question 10

The equilibrium price is often considered to be "just right" because:

Accepted Answer

A)  it equates the amount supplied with the amount demanded. 
B)  it does not result in a shortage. 
C)  it does not result in a surplus. 
D)  of all of the above. 
A)  it equates the amount supplied with the amount demanded. 
B)  it does not result in a shortage. 
C)  it does not result in a surplus. 
D)  of all of the above.

Question 11

The relationship between the value and price of a stock suggests that:

Accepted Answer

A)  the equilibrium price of a stock strikes a balance between those who think the stock is worth more and those who think it's worth less at the current price. 
B)  it is the market's best guess regarding the expected value of the company's future profits. 
C)  stocks are overvalued. 
D)  both A and B are true. 
A)  the equilibrium price of a stock strikes a balance between those who think the stock is worth more and those who think it's worth less at the current price. 
B)  it is the market's best guess regarding the expected value of the company's future profits. 
C)  stocks are overvalued. 
D)  both A and B are true.

Question 12

A market price support policy attempts to assist the farm industry by:

Accepted Answer

A)  taxing the incomes of farmers. 
B)  directly subsidizing the incomes of farmers. 
C)  establishing price floors in farm output markets. 
D)  reducing the amount of resources used in farm production. 
A)  taxing the incomes of farmers. 
B)  directly subsidizing the incomes of farmers. 
C)  establishing price floors in farm output markets. 
D)  reducing the amount of resources used in farm production.

Question 13

During the Great Depression:

Accepted Answer

A)  agriculture was hit particularly hard. 
B)  prices received by farmers rose by nearly 2/3 between 1930 and 1933. 
C)  farm legislation in the 1930s sought to reduce the number of farms and farm income. 
D)  all of the above are true. 
A)  agriculture was hit particularly hard. 
B)  prices received by farmers rose by nearly 2/3 between 1930 and 1933. 
C)  farm legislation in the 1930s sought to reduce the number of farms and farm income. 
D)  all of the above are true.

Farm products are normal goods, which means that as:

Eliminating third-party payer systems is most likely to the quantity of health care .

A maximum legal price is called:

In 1960, the percentage of total output the United States devoted to health care was about ________ percent.

In the market for personal computers and in the stock market:

In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was:

Which of the following statements are true about price controls used by some local governments?

Use the following to answer questions . Exhibit: The Market for Health Care -(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers, the:

Use the following to answer questions. Exhibit: Third-Party Payers -(Exhibit: Third-Party Payers) Three million physician office visits per week are available at a price of __________ per visit:

The equilibrium price is often considered to be "just right" because:

The relationship between the value and price of a stock suggests that:

A market price support policy attempts to assist the farm industry by:

During the Great Depression:

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

Farm products are normal goods, which means that as:

Eliminating third-party payer systems is most likely to ________ the quantity of health care ________.

A maximum legal price is called:

In 1960, the percentage of total output the United States devoted to health care was about ________ percent.

In the market for personal computers and in the stock market:

In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was:

Which of the following statements are true about price controls used by some local governments?

Use the following to answer questions . Exhibit: The Market for Health Care -(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers, the:

Use the following to answer questions. Exhibit: Third-Party Payers -(Exhibit: Third-Party Payers) Three million physician office visits per week are available at a price of __________ per visit:

The equilibrium price is often considered to be "just right" because:

The relationship between the value and price of a stock suggests that:

A market price support policy attempts to assist the farm industry by:

During the Great Depression:

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

Eliminating third-party payer systems is most likely to the quantity of health care .