Question 1

An area of concern in the provision of health care in the United States is that:

Accepted Answer

A) health care prices are not high enough. 
B) too many resources are devoted to health care. 
C) physicians have no control over prices. 
D) everyone has an excessive amount of insurance. 
A) health care prices are not high enough. 
B) too many resources are devoted to health care. 
C) physicians have no control over prices. 
D) everyone has an excessive amount of insurance.

Question 2

Price controls:

Accepted Answer

A) always increase economic efficiency. 
B) always lead to more equitable results. 
C) can result in inequitable outcomes. 
D) all of the above statements are true. 
A) always increase economic efficiency. 
B) always lead to more equitable results. 
C) can result in inequitable outcomes. 
D) all of the above statements are true.

Question 3

In addition to setting prices, the government has attempted to help farmers by:

Accepted Answer

A) restricting output. 
B) essentially paying them not to produce. 
C) creating some surpluses, buying them, and also restricting output. 
D) doing all of the above. 
A) restricting output. 
B) essentially paying them not to produce. 
C) creating some surpluses, buying them, and also restricting output. 
D) doing all of the above.

Question 4

Health-care spending as a percentage of total U.S.output generally rose between 1960 and 1995.

Accepted Answer

A) True 
 B)False

Question 5

An area of concern in the provision of health care in the United States is that:

Accepted Answer

A) health-care costs and spending are too high. 
B) too few resources are devoted to health care. 
C) physicians have no control over prices. 
D) everyone has an excessive amount of insurance. 
A) health-care costs and spending are too high. 
B) too few resources are devoted to health care. 
C) physicians have no control over prices. 
D) everyone has an excessive amount of insurance.

Question 6

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 7

The equilibrium price in a market is established subject to the all other things unchanged condition and, therefore, very well may change due to:

Accepted Answer

A) a change in the price of the good. 
B) a change in the quantity of the good. 
C) a change in the price of resource inputs used to produce the good. 
D) any of the above. 
A) a change in the price of the good. 
B) a change in the quantity of the good. 
C) a change in the price of resource inputs used to produce the good. 
D) any of the above.

Question 8

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 9

In agriculture during the last several decades:

Accepted Answer

A) supply has shifted greatly to the left due to technological advances. 
B) demand for agricultural products has decreased. 
C) prices of agricultural output have fallen. 
D) all of the above are true. 
A) supply has shifted greatly to the left due to technological advances. 
B) demand for agricultural products has decreased. 
C) prices of agricultural output have fallen. 
D) all of the above are true.

Question 10

Insurance companies have addressed the high costs of health care by:

Accepted Answer

A) seeking to shift the demand curve to the left. 
B) limiting patients choices in consuming health care. 
C) restricting the doctors patients may select. 
D) all of the above. 
A) seeking to shift the demand curve to the left. 
B) limiting patients choices in consuming health care. 
C) restricting the doctors patients may select. 
D) all of the above.

Question 11

The market for health care is characterized by which of the following?

Accepted Answer

A) significant third-party payments 
B) a falling fraction of the total cost the consumers of health care actually pay 
C) dramatic increases in costs because of technological advances in medical care 
D) all of the above 
A) significant third-party payments 
B) a falling fraction of the total cost the consumers of health care actually pay 
C) dramatic increases in costs because of technological advances in medical care 
D) all of the above

Question 12

Which of the following statements concerning insurance for health-care services is true?

Accepted Answer

A) Most workers purchase their own insurance. 
B) State governments are the providers of Medicare and Medicaid. 
C) In the United States, only private firms provide health insurance. 
D) Subscribers to insurance plans may pay a small percentage of the cost of the health care they consume. 
A) Most workers purchase their own insurance. 
B) State governments are the providers of Medicare and Medicaid. 
C) In the United States, only private firms provide health insurance. 
D) Subscribers to insurance plans may pay a small percentage of the cost of the health care they consume.

Question 13

Those things held unchanged when an equilibrium price is established:

Accepted Answer

A) are called demand shifters if a change in one (or more)of them would change demand. 
B) include only supply shifters. 
C) seldom change, and therefore prices and quantity in most markets are remarkably stable. 
D) never change, by definition. 
A) are called demand shifters if a change in one (or more)of them would change demand. 
B) include only supply shifters. 
C) seldom change, and therefore prices and quantity in most markets are remarkably stable. 
D) never change, by definition.

Question 14

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

Accepted Answer

A) Physicians' productivity increases. 
B) Medicare subsidies are lowered. 
C) The average population age increases. 
D) Subsidies for Medicare are reduced. 
A) Physicians' productivity increases. 
B) Medicare subsidies are lowered. 
C) The average population age increases. 
D) Subsidies for Medicare are reduced.

Question 15

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 16

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.

Question 17

In 1997, the health-care system in the United States accounted for about _______ percent of total output.

Accepted Answer

A) 5 
B) 13 
C) 30 
D) 40 
A) 5 
B) 13 
C) 30 
D) 40

Question 18

Which of the following is a demand factor in the health-care market?

Accepted Answer

A) productivity in health care. 
B) treatment decisions of doctors. 
C) changes in health care technology. 
D) All of the above are demand factors. 
A) productivity in health care. 
B) treatment decisions of doctors. 
C) changes in health care technology. 
D) All of the above are demand factors.

Question 19

If the government sets out to help low-income people by establishing a maximum amount for rent:

Accepted Answer

A) a price floor has been set and a shortage of rental units may occur. 
B) a price ceiling has been set and a shortage of rental units may occur. 
C) in the long run more rental units will appear. 
D) poor people will definitely be helped. 
A) a price floor has been set and a shortage of rental units may occur. 
B) a price ceiling has been set and a shortage of rental units may occur. 
C) in the long run more rental units will appear. 
D) poor people will definitely be helped.

Question 20

A price that the government guarantees farmers will receive for a particular crop is a(n):

Accepted Answer

A) price ceiling. 
B) price support. 
C) deficiency price. 
D) export price. 
A) price ceiling. 
B) price support. 
C) deficiency price. 
D) export price.

Exam 4: Applications of Demand and Supply

An area of concern in the provision of health care in the United States is that:

Price controls:

In addition to setting prices, the government has attempted to help farmers by:

Health-care spending as a percentage of total U.S.output generally rose between 1960 and 1995.

An area of concern in the provision of health care in the United States is that:

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

The equilibrium price in a market is established subject to the all other things unchanged condition and, therefore, very well may change due to:

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

In agriculture during the last several decades:

Insurance companies have addressed the high costs of health care by:

The market for health care is characterized by which of the following?

Which of the following statements concerning insurance for health-care services is true?

Those things held unchanged when an equilibrium price is established:

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

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

During the Great Depression:

In 1997, the health-care system in the United States accounted for about _______ percent of total output.

Which of the following is a demand factor in the health-care market?

If the government sets out to help low-income people by establishing a maximum amount for rent:

A price that the government guarantees farmers will receive for a particular crop is a(n):

Economics: the Study of Choice

Confronting Scarcity: Choices in Production

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

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Inflation and Unemployment

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Macroeconomics: the Big Picture

Measuring Total Income and Output

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

Macro Inflation and Unemployment

Macro a Brief History of Macroeconomic Thought and Policy

Economic Development

Socialist Economies in Transition

Filters