Question 1

Economists in general agree that rent controls are:

Accepted Answer

A) an efficient and equitable way to help low-income families. 
B) an inefficient and ineffective way to help low-income families. 
C) an efficient method of dealing with the supply of rental units but don't provide relief for low-income families. 
D) not very efficient but still a good way to solve the problem of low income. 
A) an efficient and equitable way to help low-income families. 
B) an inefficient and ineffective way to help low-income families. 
C) an efficient method of dealing with the supply of rental units but don't provide relief for low-income families. 
D) not very efficient but still a good way to solve the problem of low income. B

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

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  C

Question 4

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 5

The idea behind limiting the number and type of procedures the Oregon Plan of the 1990s covered was to be able to increase the number of people included in its coverage.

Accepted Answer

A) True 
 B)False

Question 6

Although health-care costs have increased recently in absolute terms, they have fallen as a percentage of total output.

Accepted Answer

A) True 
 B)False

Question 7

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 8

An arrangement in which consumers choose their health-care services while other institutions pay a share of the cost of those services is called a(n)
________ payer system.

Accepted Answer

A) provider fees 
B) insurance premiums 
C) third-party 
D) catastrophic insurance 
A) provider fees 
B) insurance premiums 
C) third-party 
D) catastrophic insurance

Question 9

In the market for health care:

Accepted Answer

A) there has been no effect of the presence of third-party payers. 
B) the effect of third-party payers decreases the price that consumers pay. 
C) providers are encouraged to supply a greater quantity than they would without third-party payers. 
D) B and C are true. 
A) there has been no effect of the presence of third-party payers. 
B) the effect of third-party payers decreases the price that consumers pay. 
C) providers are encouraged to supply a greater quantity than they would without third-party payers. 
D) B and C are true.

Question 10

The Affordable Health Care Act of 2010:

Accepted Answer

A) requires that individuals purchase health insurance. 
B) requires that insurance companies provide coverage for children on their parent's policies up to the age of 26. 
C) bars insurance companies from denying coverage based on pre-existing conditions. 
D) all of the above 
A) requires that individuals purchase health insurance. 
B) requires that insurance companies provide coverage for children on their parent's policies up to the age of 26. 
C) bars insurance companies from denying coverage based on pre-existing conditions. 
D) all of the above

Question 11

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 12

Use the following to answer questions 
Exhibit: Third-Party Payers  
-(Exhibit: Third-Party Payers)
Suppose insurance lowers the price consumers pay to $20 per visit.Compared to the situation without insurance, this would:

Accepted Answer

A) reduce the equilibrium price to $20. 
B) reduce the quantity demanded to 2 million visits per week. 
C) increase the quantity demanded to 3 million visits per week. 
D) do none of the above. 
A) reduce the equilibrium price to $20. 
B) reduce the quantity demanded to 2 million visits per week. 
C) increase the quantity demanded to 3 million visits per week. 
D) do none of the above.

Question 13

Health care is a normal good.

Accepted Answer

A) True 
 B)False

Question 14

Use the following to answer questions 
Exhibit: Rent Controls  
-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 15

Use the following to answer questions 
Exhibit: The Market for Health Care  
-(Exhibit: The Market for Health Care)
The quantity Q2 is available at price:

Accepted Answer

A) P1. 
B) P2. 
C) P3. 
D) none of the above are correct. 
A) P1. 
B) P2. 
C) P3. 
D) none of the above are correct.

Question 16

Use the following to answer questions 
Exhibit: Supply and Demand in Agriculture  
-(Exhibit: Supply and Demand in Agriculture)
If a price floor at P4 is set to help farmers in terms of income and government wants to assure farmers that their output will be purchased, the government would have to purchase an amount of output equal to:

Accepted Answer

A) Q3 - Q0. 
B) Q3 - Q1. 
C) Q2 - Q1. 
D) none of the above are correct. 
A) Q3 - Q0. 
B) Q3 - Q1. 
C) Q2 - Q1. 
D) none of the above are correct.

Question 17

As discussed in the Case in Point on Arab spring and oil markets, after the official start of the recession in the U.S.in 2007, oil prices:

Accepted Answer

A) began to fall because of decreased demand in China and India. 
B) began to fall because of decreased demand in the U.S.and Europe. 
C) began to rise because of increased demand in China and India. 
D) began to rise because of increased demand in the U.S.and Europe. 
A) began to fall because of decreased demand in China and India. 
B) began to fall because of decreased demand in the U.S.and Europe. 
C) began to rise because of increased demand in China and India. 
D) began to rise because of increased demand in the U.S.and Europe.

Question 18

Use the following to answer questions 
Exhibit: Rent Controls  
-A persistent shortage may occur if:

Accepted Answer

A) the government imposes a price ceiling. 
B) a price floor is imposed. 
C) demand keeps falling. 
D) all of the above occur. 
A) the government imposes a price ceiling. 
B) a price floor is imposed. 
C) demand keeps falling. 
D) all of the above occur.

Question 19

Use the following to answer questions 
Exhibit: Rent Controls  
-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

As discussed in the Case in Point on Arab spring and oil markets, the regime changes in Tunisia, Egypt, and Libya through 2011 resulted in:

Accepted Answer

A) an increase in the demand for oil and an increase in price. 
B) a decrease in the demand for oil and a decrease in price. 
C) an increase in the supply of oil and a decrease in price. 
D) a decrease in the supply of oil and an increase in price. 
A) an increase in the demand for oil and an increase in price. 
B) a decrease in the demand for oil and a decrease in price. 
C) an increase in the supply of oil and a decrease in price. 
D) a decrease in the supply of oil and an increase in price.

Economists in general agree that rent controls are:

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

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

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

The idea behind limiting the number and type of procedures the Oregon Plan of the 1990s covered was to be able to increase the number of people included in its coverage.

Although health-care costs have increased recently in absolute terms, they have fallen as a percentage of total output.

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

An arrangement in which consumers choose their health-care services while other institutions pay a share of the cost of those services is called a(n) ________ payer system.

In the market for health care:

The Affordable Health Care Act of 2010:

A firm owned by one individual is called a:

Use the following to answer questions Exhibit: Third-Party Payers -(Exhibit: Third-Party Payers) Suppose insurance lowers the price consumers pay to $20 per visit.Compared to the situation without insurance, this would:

Health care is a normal good.

Use the following to answer questions Exhibit: Rent Controls -Rent controls set a price ceiling below the equilibrium price and therefore:

Use the following to answer questions Exhibit: The Market for Health Care -(Exhibit: The Market for Health Care) The quantity Q₂ is available at price:

As discussed in the Case in Point on Arab spring and oil markets, after the official start of the recession in the U.S.in 2007, oil prices:

Use the following to answer questions Exhibit: Rent Controls -A persistent shortage may occur if:

Use the following to answer questions Exhibit: Rent Controls -If the government sets out to help low-income people by establishing a maximum amount for rent:

As discussed in the Case in Point on Arab spring and oil markets, the regime changes in Tunisia, Egypt, and Libya through 2011 resulted in:

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

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

Economists in general agree that rent controls are:

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

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

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

The idea behind limiting the number and type of procedures the Oregon Plan of the 1990s covered was to be able to increase the number of people included in its coverage.

Although health-care costs have increased recently in absolute terms, they have fallen as a percentage of total output.

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

An arrangement in which consumers choose their health-care services while other institutions pay a share of the cost of those services is called a(n) ________ payer system.

In the market for health care:

The Affordable Health Care Act of 2010:

A firm owned by one individual is called a:

Use the following to answer questions Exhibit: Third-Party Payers -(Exhibit: Third-Party Payers) Suppose insurance lowers the price consumers pay to $20 per visit.Compared to the situation without insurance, this would:

Health care is a normal good.

Use the following to answer questions Exhibit: Rent Controls -Rent controls set a price ceiling below the equilibrium price and therefore:

Use the following to answer questions Exhibit: The Market for Health Care -(Exhibit: The Market for Health Care) The quantity Q2 is available at price:

As discussed in the Case in Point on Arab spring and oil markets, after the official start of the recession in the U.S.in 2007, oil prices:

Use the following to answer questions Exhibit: Rent Controls -A persistent shortage may occur if:

Use the following to answer questions Exhibit: Rent Controls -If the government sets out to help low-income people by establishing a maximum amount for rent:

As discussed in the Case in Point on Arab spring and oil markets, the regime changes in Tunisia, Egypt, and Libya through 2011 resulted in:

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

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

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

Use the following to answer questions Exhibit: The Market for Health Care -(Exhibit: The Market for Health Care) The quantity Q₂ is available at price: