Question 1

Which of the following statements is (are) true?

Accepted Answer

A)  In the last few decades health-care spending has grown dramatically. 
B)  Health-care costs have grown relative to an increasing total output. 
C)  Health-care costs account for more than two and a half times the share of total output that they did in 1960. 
D)  All of the above are true. 
A)  In the last few decades health-care spending has grown dramatically. 
B)  Health-care costs have grown relative to an increasing total output. 
C)  Health-care costs account for more than two and a half times the share of total output that they did in 1960. 
D)  All of the above are true.

Question 2

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 3

Health care is an inferior good.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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 6

Health-care spending as a percentage of total U.S.output generally rose between 1960 and 2015.

Accepted Answer

A) True 
 B)False

Question 7

Use the following to answer question(s): The Market for Health Care
  
-(Exhibit: The Market for Health Care) Suppose insurance lowers the price consumers pay to P₂.Compared to the situation without insurance, this would:

Accepted Answer

A)  reduce the equilibrium price to P₂. 
B)  reduce the quantity demanded to Q₁. 
C)  increase the quantity demanded to Q₂. 
D)  have no effect on quantity demanded. 
A)  reduce the equilibrium price to P₂. 
B)  reduce the quantity demanded to Q₁. 
C)  increase the quantity demanded to Q₂. 
D)  have no effect on quantity demanded.

Question 8

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 9

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 10

Use the following to answer question(s): 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 11

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.

Question 12

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.

Question 13

Use the following to answer question(s): 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 14

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

Accepted Answer

A)  the equilibrium quantity is Q₂. 
B)  the equilibrium quantity is Q₁. 
C)  the total amount spent on health-care services at the equilibrium price is given by the area OP₃BQ₂. 
D)  none of the above are true. 
A)  the equilibrium quantity is Q₂. 
B)  the equilibrium quantity is Q₁. 
C)  the total amount spent on health-care services at the equilibrium price is given by the area OP₃BQ₂. 
D)  none of the above are true.

Question 15

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 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

Rent controls:

Accepted Answer

A)  almost always help low-income families find low-cost housing. 
B)  often help high-income families. 
C)  cause the quantity supplied to exceed the quantity demanded. 
D)  result in all of the above. 
A)  almost always help low-income families find low-cost housing. 
B)  often help high-income families. 
C)  cause the quantity supplied to exceed the quantity demanded. 
D)  result in all of the above.

Question 18

A market price floor for wheat:

Accepted Answer

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

Question 19

How does the supply of health care in general and doctors in particular contribute to the rising costs of health care?

Accepted Answer

The supply of health care in general and

Question 20

A ceiling price set in the policy of rent controls:

Accepted Answer

A)  will be set at a price above the equilibrium price. 
B)  may result in some people who rent out units to leave the business because they cannot cover costs. 
C)  will lead to rental units being higher in quality because landlords are guaranteed a high price. 
D)  will create a surplus of housing. 
A)  will be set at a price above the equilibrium price. 
B)  may result in some people who rent out units to leave the business because they cannot cover costs. 
C)  will lead to rental units being higher in quality because landlords are guaranteed a high price. 
D)  will create a surplus of housing.

Which of the following statements is (are) true?

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

Health care is an inferior good.

The Affordable Health Care Act of 2010:

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

Health-care spending as a percentage of total U.S.output generally rose between 1960 and 2015.

Use the following to answer question(s): The Market for Health Care -(Exhibit: The Market for Health Care) Suppose insurance lowers the price consumers pay to P₂.Compared to the situation without insurance, this would:

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

A maximum legal price is called:

Use the following to answer question(s): 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:

One source of high health-care costs is the:

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

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

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

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

During the Great Depression:

Rent controls:

A market price floor for wheat:

How does the supply of health care in general and doctors in particular contribute to the rising costs of health care?

A ceiling price set in the policy of rent controls:

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

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

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Exam 4: Applications of Supply and Demand

Which of the following statements is (are) true?

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

Health care is an inferior good.

The Affordable Health Care Act of 2010:

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

Health-care spending as a percentage of total U.S.output generally rose between 1960 and 2015.

Use the following to answer question(s): The Market for Health Care -(Exhibit: The Market for Health Care) Suppose insurance lowers the price consumers pay to P₂.Compared to the situation without insurance, this would:

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

A maximum legal price is called:

Use the following to answer question(s): 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:

One source of high health-care costs is the:

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

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

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

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

During the Great Depression:

Rent controls:

A market price floor for wheat:

How does the supply of health care in general and doctors in particular contribute to the rising costs of health care?

A ceiling price set in the policy of rent controls:

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

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

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters