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.

Question 2

In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was:

Accepted Answer

A)  mainly a function of resource prices. 
B)  primarily due to technological change and an increase in the number of sellers. 
C)  a result of a dramatic decrease in U.S. wages. 
D)  a result of a dramatic decrease in foreign wages. 
A)  mainly a function of resource prices. 
B)  primarily due to technological change and an increase in the number of sellers. 
C)  a result of a dramatic decrease in U.S. wages. 
D)  a result of a dramatic decrease in foreign wages.

Question 3

In the last 30 years, the costs of health care have _______ as a percentage of U.S. output.

Accepted Answer

A)  gone up in absolute terms, but decreased 
B)  gone down absolutely, but increased 
C)  gone down absolutely and 
D)  increased absolutely and 
A)  gone up in absolute terms, but decreased 
B)  gone down absolutely, but increased 
C)  gone down absolutely and 
D)  increased absolutely and

Question 4

The Oregon Plan for the provision of health care to people living below the poverty line generally increased the number and type of procedures for which they were eligible.

Accepted Answer

A) True 
 B)False

Question 5

Those things held unchanged when an equilibrium price is established:

Accepted Answer

A)  are called demand and supply shifters if a change in one (or more) of them would change demand or supply. 
B)  include only supply shifters. 
C)  seldom change, and therefore prices and quantity in most markets are remarkably stable. 
D)  never change, by definition. 
A)  are called demand and supply shifters if a change in one (or more) of them would change demand or supply. 
B)  include only supply shifters. 
C)  seldom change, and therefore prices and quantity in most markets are remarkably stable. 
D)  never change, by definition.

Question 6

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 7

A market price support policy for crops establishes a price floor, which:

Accepted Answer

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

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 judgments. 
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 judgments. 
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.

Question 9

A cost that farm subsidies and price floors imposes on the rest of the economy is:

Accepted Answer

A)  excessively mobile farm resources. 
B)  higher consumer commodity prices. 
C)  less government-funded agricultural research. 
D)  efficient farmers that leave the farming industry. 
A)  excessively mobile farm resources. 
B)  higher consumer commodity prices. 
C)  less government-funded agricultural research. 
D)  efficient farmers that leave the farming industry.

Question 10

Discuss the arguments in favor of and against the U.S. government's financial support of corn-based ethanol.

Accepted Answer

Arguments in favor of the U.S. governmen

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

-(Exhibit: Supply and Demand in Agriculture) To help farmers:

Accepted Answer

A)  a price floor would be set at P4, causing a surplus of Q3 - Q0. 
B)  a price floor would be set at P2, causing a surplus of Q2 - Q0. 
C)  a price ceiling would be set at P4, causing a surplus of Q2 - Q1. 
D)  a price floor would be set at P1, causing a shortage of Q3 - Q0. 
A)  a price floor would be set at P4, causing a surplus of Q3 - Q0. 
B)  a price floor would be set at P2, causing a surplus of Q2 - Q0. 
C)  a price ceiling would be set at P4, causing a surplus of Q2 - Q1. 
D)  a price floor would be set at P1, causing a shortage of Q3 - Q0.

Question 13

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 14

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 15

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 16

Price controls:

Accepted Answer

A)  always increase economic efficiency. 
B)  always lead to more equitable results. 
C)  can result in inequitable outcomes. 
D)  all of the above statements are true. 
A)  always increase economic efficiency. 
B)  always lead to more equitable results. 
C)  can result in inequitable outcomes. 
D)  all of the above statements are true.

Question 17

-(Exhibit: Third-Party Payers) Based on the exhibit, and assuming there are no third-party payers:

Accepted Answer

A)  the equilibrium quantity is 3 million physician office visits per week. 
B)  the equilibrium quantity is 2 million physician office visits per week. 
C)  the total amount spent on physician office visits at the equilibrium price is $180 million. 
D)  the equilibrium quantity is 1 million physician office visits per week. 
A)  the equilibrium quantity is 3 million physician office visits per week. 
B)  the equilibrium quantity is 2 million physician office visits per week. 
C)  the total amount spent on physician office visits at the equilibrium price is $180 million. 
D)  the equilibrium quantity is 1 million physician office visits per week.

Question 18

Health care is a(n):

Accepted Answer

A)  abnormal good. 
B)  superior good. 
C)  normal good. 
D)  good where higher incomes lead to less spending. 
A)  abnormal good. 
B)  superior good. 
C)  normal good. 
D)  good where higher incomes lead to less spending.

Question 19

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 20

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.

Economists in general agree that rent controls are:

In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was:

In the last 30 years, the costs of health care have _______ as a percentage of U.S. output.

The Oregon Plan for the provision of health care to people living below the poverty line generally increased the number and type of procedures for which they were eligible.

Those things held unchanged when an equilibrium price is established:

If the government sets out to help low-income people by establishing a maximum amount for rent:

A market price support policy for crops establishes a price floor, which:

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

A cost that farm subsidies and price floors imposes on the rest of the economy is:

Discuss the arguments in favor of and against the U.S. government's financial support of corn-based ethanol.

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

-(Exhibit: Supply and Demand in Agriculture) To help farmers:

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

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

Most firms in the United States today are:

Price controls:

-(Exhibit: Third-Party Payers) Based on the exhibit, and assuming there are no third-party payers:

Health care is a(n):

A price ceiling will have no effect if:

In the stock market:

Economics: the Study of Choice

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

Economic Development

Socialist Economies in Transition

Filters

Exam 4: Applications of Demand and Supply

Economists in general agree that rent controls are:

In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was:

In the last 30 years, the costs of health care have _______ as a percentage of U.S. output.

The Oregon Plan for the provision of health care to people living below the poverty line generally increased the number and type of procedures for which they were eligible.

Those things held unchanged when an equilibrium price is established:

If the government sets out to help low-income people by establishing a maximum amount for rent:

A market price support policy for crops establishes a price floor, which:

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

A cost that farm subsidies and price floors imposes on the rest of the economy is:

Discuss the arguments in favor of and against the U.S. government's financial support of corn-based ethanol.

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

-(Exhibit: Supply and Demand in Agriculture) To help farmers:

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

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

Most firms in the United States today are:

Price controls:

-(Exhibit: Third-Party Payers) Based on the exhibit, and assuming there are no third-party payers:

Health care is a(n):

A price ceiling will have no effect if:

In the stock market:

Economics: the Study of Choice

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

Economic Development

Socialist Economies in Transition

Filters