Question 1

Health care is a normal good.

Accepted Answer

A) True 
 B)False

Question 2

According to the textbook, much of the discussion about the health-care "problem" in the United States has focused on:

Accepted Answer

A)  the inability of doctors to provide adequate health-care services. 
B)  rising spending for health care. 
C)  the shortage of adequate space in hospitals. 
D)  the surplus of nurses. 
A)  the inability of doctors to provide adequate health-care services. 
B)  rising spending for health care. 
C)  the shortage of adequate space in hospitals. 
D)  the surplus of nurses.

Question 3

Price ceilings which lead to shortages will impose costs on society because they:

Accepted Answer

A)  will lead to waiting lines. 
B)  may result in black market prices, which are higher than the market-determined price would be. 
C)  lead to a smaller quantity offered on the market. 
D)  do all of the above. 
A)  will lead to waiting lines. 
B)  may result in black market prices, which are higher than the market-determined price would be. 
C)  lead to a smaller quantity offered on the market. 
D)  do all of the above.

Question 4

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 5

Use the following to answer question(s): Supply and Demand in Agriculture
  
-(Exhibit: Supply and Demand in Agriculture) If the government set an effective price floor at one of the prices shown on the vertical axis:

Accepted Answer

A)  Q₃ bushels of wheat would be supplied. 
B)  with this much wheat on the market, the price would fall to P₁. 
C)  the resulting shortage would be made up by the government out of its accumulated stocks. 
D)  all of the above would be true. 
A)  Q₃ bushels of wheat would be supplied. 
B)  with this much wheat on the market, the price would fall to P₁. 
C)  the resulting shortage would be made up by the government out of its accumulated stocks. 
D)  all of the above would be true.

Question 6

Most firms in the United States today are:

Accepted Answer

A)  sole proprietorships and partnerships. 
B)  owned by government. 
C)  corporations. 
D)  owned by shareholders. 
A)  sole proprietorships and partnerships. 
B)  owned by government. 
C)  corporations. 
D)  owned by shareholders.

Question 7

One source of high health care costs is the:

Accepted Answer

A)  relatively large fraction of health care expenditures paid directly by patients. 
B)  relatively large fraction of health care expenditures paid by third-party payers. 
C)  deficiency in the availability of hospital beds. 
D)  deficiency in the availability of diagnostic tests. 
A)  relatively large fraction of health care expenditures paid directly by patients. 
B)  relatively large fraction of health care expenditures paid by third-party payers. 
C)  deficiency in the availability of hospital beds. 
D)  deficiency in the availability of diagnostic tests.

Question 8

Use the following to answer question(s): Third-Party Payers
  
-(Exhibit: Third-Party Payers) Based on the exhibit, and assuming there are no third-party payers, the:

Accepted Answer

A)  equilibrium price for physician office visits is $80. 
B)  equilibrium quantity is 3 million physician office visits per week. 
C)  total amount spent on physician office visits per week at the equilibrium price is $40 million. 
D)  equilibrium price for physician office visits is $40. 
A)  equilibrium price for physician office visits is $80. 
B)  equilibrium quantity is 3 million physician office visits per week. 
C)  total amount spent on physician office visits per week at the equilibrium price is $40 million. 
D)  equilibrium price for physician office visits is $40.

Question 9

In the stock market:

Accepted Answer

A)  changes in expectations will affect suppliers but not demanders. 
B)  expectations that cause the demand curve to shift in one direction are usually associated with a supply shift in the same direction. 
C)  the demand for stocks in recent years can be affected by demographic and income changes. 
D)  all of the above are true. 
A)  changes in expectations will affect suppliers but not demanders. 
B)  expectations that cause the demand curve to shift in one direction are usually associated with a supply shift in the same direction. 
C)  the demand for stocks in recent years can be affected by demographic and income changes. 
D)  all of the above are true.

Question 10

In the 1960s the dominant maker of mainframe computers was:

Accepted Answer

A)  IBM. 
B)  Apple Computer. 
C)  Compaq. 
D)  GM. 
A)  IBM. 
B)  Apple Computer. 
C)  Compaq. 
D)  GM.

Question 11

Third-party payments have led to an increase in the price and quantity of health care in the United States.

Accepted Answer

A) True 
 B)False

Question 12

The United States is confronted with two significant problems in health care.They are:

Accepted Answer

A)  health-care cost and how to limit spending on health care. 
B)  increasing the demand for health care and decreasing the supply of health care. 
C)  the need to build more hospitals and the slow rate of technological change in health care. 
D)  all of the above. 
A)  health-care cost and how to limit spending on health care. 
B)  increasing the demand for health care and decreasing the supply of health care. 
C)  the need to build more hospitals and the slow rate of technological change in health care. 
D)  all of the above.

Question 13

Third-party payer systems are most likely to ________ the quantity of health care ________.

Accepted Answer

A)  increase; demanded 
B)  decrease; demanded 
C)  not change; supplied 
D)  decrease; supplied 
A)  increase; demanded 
B)  decrease; demanded 
C)  not change; supplied 
D)  decrease; supplied

Health care is a normal good.

According to the textbook, much of the discussion about the health-care "problem" in the United States has focused on:

Price ceilings which lead to shortages will impose costs on society because they:

Farm products are normal goods, which means that as:

Use the following to answer question(s): Supply and Demand in Agriculture -(Exhibit: Supply and Demand in Agriculture) If the government set an effective price floor at one of the prices shown on the vertical axis:

Most firms in the United States today are:

One source of high health care costs is the:

Use the following to answer question(s): Third-Party Payers -(Exhibit: Third-Party Payers) Based on the exhibit, and assuming there are no third-party payers, the:

In the stock market:

In the 1960s the dominant maker of mainframe computers was:

Third-party payments have led to an increase in the price and quantity of health care in the United States.

The United States is confronted with two significant problems in health care.They are:

Third-party payer systems are most likely to the quantity of health care .

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

Health care is a normal good.

According to the textbook, much of the discussion about the health-care "problem" in the United States has focused on:

Price ceilings which lead to shortages will impose costs on society because they:

Farm products are normal goods, which means that as:

Use the following to answer question(s): Supply and Demand in Agriculture -(Exhibit: Supply and Demand in Agriculture) If the government set an effective price floor at one of the prices shown on the vertical axis:

Most firms in the United States today are:

One source of high health care costs is the:

Use the following to answer question(s): Third-Party Payers -(Exhibit: Third-Party Payers) Based on the exhibit, and assuming there are no third-party payers, the:

In the stock market:

In the 1960s the dominant maker of mainframe computers was:

Third-party payments have led to an increase in the price and quantity of health care in the United States.

The United States is confronted with two significant problems in health care.They are:

Third-party payer systems are most likely to ________ the quantity of health care ________.

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

Third-party payer systems are most likely to the quantity of health care .