Question 1

-(Exhibit: Third-Party Payers)When the price of $20 per visit becomes available to the consumer because of insurance:

Accepted Answer

A) health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance. 
B) health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance . 
C) the new quantity of physician office visits is 1 million visits per week. 
D) both A and C are true. 
A) health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance. 
B) health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance . 
C) the new quantity of physician office visits is 1 million visits per week. 
D) both A and C are true.

Question 2

The bulk of the nation's output is produced by:

Accepted Answer

A) partnerships. 
B) proprietorships. 
C) corporations. 
D) none of the above. 
A) partnerships. 
B) proprietorships. 
C) corporations. 
D) none of the above.

Question 3

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 4

-(Exhibit: The Market for Health Care)Based on the exhibit and assuming that there are no third-party payers:

Accepted Answer

A) the total amount spent on health services is OP1AQ1 at price P1. 
B) the equilibrium price and quantity are P3 and Q2. 
C) at price P2 there would be a surplus. 
D) A and B are true. 
A) the total amount spent on health services is OP1AQ1 at price P1. 
B) the equilibrium price and quantity are P3 and Q2. 
C) at price P2 there would be a surplus. 
D) A and B are true.

Question 5

A maximum price set below the equilibrium price is a:

Accepted Answer

A) demand price. 
B) supply price. 
C) price floor. 
D) price ceiling. 
A) demand price. 
B) supply price. 
C) price floor. 
D) price ceiling.

Question 6

During the 1930s, the role of the federal government in the U.S.agricultural industry:

Accepted Answer

A) remained unchanged from the earlier decades. 
B) decreased substantially. 
C) decreased marginally. 
D) increased substantially. 
A) remained unchanged from the earlier decades. 
B) decreased substantially. 
C) decreased marginally. 
D) increased substantially.

Question 7

-(Exhibit: Rent Controls)If rent controls are imposed, they will most likely be set at either _______ or _______ .

Accepted Answer

A) Rent0; Rent1  
B) Rent1; Rent3  
C) Rent3; Rent4  
D) All of the above are equally likely rent control levels. 
A) Rent0; Rent1  
B) Rent1; Rent3  
C) Rent3; Rent4  
D) All of the above are equally likely rent control levels.

Question 8

Those who make economic policy concerning price controls often do so in order to:

Accepted Answer

A) establish a more equitable result based on normative judgements. 
B) raise revenues to support the activities of government. 
C) change the facts on which economic theory is built. 
D) do all of the above. 
A) establish a more equitable result based on normative judgements. 
B) raise revenues to support the activities of government. 
C) change the facts on which economic theory is built. 
D) do all of the above.

Exam 4: Applications of Demand and Supply

-(Exhibit: Third-Party Payers)When the price of $20 per visit becomes available to the consumer because of insurance:

The bulk of the nation's output is produced by:

A price ceiling will have no effect if:

-(Exhibit: The Market for Health Care)Based on the exhibit and assuming that there are no third-party payers:

A maximum price set below the equilibrium price is a:

During the 1930s, the role of the federal government in the U.S.agricultural industry:

-(Exhibit: Rent Controls)If rent controls are imposed, they will most likely be set at either _______ or _______ .

Those who make economic policy concerning price controls often do so in order to:

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

-(Exhibit: Rent Controls)If rent controls are imposed, they will most likely be set at either _ or _ .