Question 1

If the real hourly wage paid to physicians increase, the real hourly wage paid to nurses will _______.

Accepted Answer

A)  increase 
B)  decrease 
C)  stay the same 
D)  increase only if the number of physicians increases 
E)  none of the above A

Question 2

Collusion among firms is most likely to take place within which type of industry?

Accepted Answer

A)  Perfect Competition 
B)  Monopolistic Competition 
C)  Oligopolies 
D)  Monopolies 
E)  None of the above C

Question 3

In the long-run, economic profits will be zero in monopolistic competition.

Accepted Answer

A) True 
 B)False  True

Question 4

If the market price is greater than the marginal cost, a profit-maximizing firm will choose to produce less.

Accepted Answer

A) True 
 B)False

Question 5

The net benefit received through the purchase and consumption of medical care is referred to as _______.

Accepted Answer

A)  economic surplus 
B)  deadweight loss 
C)  consumer surplus 
D)  producer surplus 
E)  None of the above

Question 6

A decrease in the demand for medical care will cause the real hourly wage of physicians to increase.

Accepted Answer

A) True 
 B)False

Question 7

When the demand for medical care _______, the real hourly wage for physicians should _______.

Accepted Answer

A)  increases; increase 
B)  decreases; increase 
C)  increases; stay the same 
D)  increases; decrease 
E)  decreases; stay the same

Question 8

If a large number of nurses chose to leave the profession in pursuit of alternative careers, what would be the likely impact on the market?

Accepted Answer

A)  permanent surplus 
B)  temporary shortage 
C)  temporary surplus 
D)  permanent shortage 
E)  none of the above

Question 9

Collusion is most likely to occur within monopolistic competition.

Accepted Answer

A) True 
 B)False

Question 10

If there is an increase in the number of registered nurses and the demand for medical services remains unchanged, what should be expected to happen to the real hourly wage for registered nurses?

Accepted Answer

A)  The real hourly wage should increase. 
B)  The real hourly wage should only increase if the demand for medical services is inelastic. 
C)  The real hourly wage should only decrease if the demand for medical services is elastic. 
D)  The real hourly wage should decrease. 
E)  The real hourly wage should only increase if the demand for medical services is elastic.

Question 11

Suppose that the inverse market demand for a new vaccine is P = 21,000 - 5Q, and the marginal cost is $10 per vaccine. Assuming that the manufacturer is profit-maximizing, what will be the market price of this new vaccine?

Accepted Answer

A)  15,000 
B)  17,250 
C)  15,750 
D)  14,000 
E)  13,500

Question 12

Barriers to entry are not present in which type of industry?

Accepted Answer

A)  Perfect Competition 
B)  Monopolistic Competition 
C)  Oligopolies 
D)  Monopolies 
E)  None of the above

Question 13

Product differentiation may stem from which of the following?

Accepted Answer

A)  Location 
B)  Quality 
C)  Advertising 
D)  All of the above 
E)  None of the above

Question 14

Suppose that the inverse market demand for a new vaccine is P = 21,000 - 5Q, and the marginal cost is $10 per vaccine. Assuming that the manufacturer is profit-maximizing, how many units of this new vaccine will be produced?

Accepted Answer

A)  1,200 
B)  750 
C)  10,500 
D)  1,400 
E)  1,050

Question 15

An increase in consumer income will lead to an increase in the quantity of medical care supplied.

Accepted Answer

A) True 
 B)False

Exam 8: Structure, Conduct, Performance, and Market Analysis

If the real hourly wage paid to physicians increase, the real hourly wage paid to nurses will _______.

Collusion among firms is most likely to take place within which type of industry?

In the long-run, economic profits will be zero in monopolistic competition.

If the market price is greater than the marginal cost, a profit-maximizing firm will choose to produce less.

The net benefit received through the purchase and consumption of medical care is referred to as _______.

A decrease in the demand for medical care will cause the real hourly wage of physicians to increase.

When the demand for medical care _, the real hourly wage for physicians should _.

If a large number of nurses chose to leave the profession in pursuit of alternative careers, what would be the likely impact on the market?

Collusion is most likely to occur within monopolistic competition.

If there is an increase in the number of registered nurses and the demand for medical services remains unchanged, what should be expected to happen to the real hourly wage for registered nurses?

Suppose that the inverse market demand for a new vaccine is P = 21,000 - 5Q, and the marginal cost is $10 per vaccine. Assuming that the manufacturer is profit-maximizing, what will be the market price of this new vaccine?

Barriers to entry are not present in which type of industry?

Product differentiation may stem from which of the following?

Suppose that the inverse market demand for a new vaccine is P = 21,000 - 5Q, and the marginal cost is $10 per vaccine. Assuming that the manufacturer is profit-maximizing, how many units of this new vaccine will be produced?

An increase in consumer income will lead to an increase in the quantity of medical care supplied.