Question 1

All health insurance plans charge the same and require subscribers to pay the same percentage of the costs of health care they consume.

Accepted Answer

A) True 
 B)False

Question 2

-(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers:

Accepted Answer

A)  the total amount spent on health services is OP1AQ1 at price P1. 
B)  the equilibrium price and quantity are P3 and Q2. 
C)  at price P2 there would be a surplus. 
D)  A and B are true. 
A)  the total amount spent on health services is OP1AQ1 at price P1. 
B)  the equilibrium price and quantity are P3 and Q2. 
C)  at price P2 there would be a surplus. 
D)  A and B are true.

Question 3

A feature of the health-care market is:

Accepted Answer

A)  that demand has fallen relative to supply. 
B)  that supply has increased relative to demand. 
C)  that demand has increased relative to supply. 
D)  all of the above. 
A)  that demand has fallen relative to supply. 
B)  that supply has increased relative to demand. 
C)  that demand has increased relative to supply. 
D)  all of the above.

Question 4

During the 1930s, the role of the federal government in the U.S. agricultural industry:

Accepted Answer

A)  remained unchanged from the earlier decades. 
B)  decreased substantially. 
C)  decreased marginally. 
D)  increased substantially. 
A)  remained unchanged from the earlier decades. 
B)  decreased substantially. 
C)  decreased marginally. 
D)  increased substantially.

Question 5

The relationship between the value and price of a stock suggests that:

Accepted Answer

A)  the equilibrium price of a stock strikes a balance between those who think the stock is worth more and those who think it's worth less at the current price. 
B)  it is the market's best guess regarding the expected value of the company's future profits. 
C)  stocks are overvalued. 
D)  both A and B are true. 
A)  the equilibrium price of a stock strikes a balance between those who think the stock is worth more and those who think it's worth less at the current price. 
B)  it is the market's best guess regarding the expected value of the company's future profits. 
C)  stocks are overvalued. 
D)  both A and B are true.

Question 6

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 7

-(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 8

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

Accepted Answer

A)  the total amount spent on health services is $80 million per week. 
B)  the equilibrium price and quantity are $60 and 3 million per week, respectively. 
C)  At a price of $20, there would be a surplus. 
D)  At a price of $60, there would be a shortage. 
A)  the total amount spent on health services is $80 million per week. 
B)  the equilibrium price and quantity are $60 and 3 million per week, respectively. 
C)  At a price of $20, there would be a surplus. 
D)  At a price of $60, there would be a shortage.

Question 9

Which of the following is a criticism that has been raised of government spending in support of corn-based ethanol?

Accepted Answer

A)  limited reduction in dependence on foreign oil. 
B)  detrimental effects on the environment. 
C)  increased food prices and an increase in world hunger. 
D)  All of the above. 
A)  limited reduction in dependence on foreign oil. 
B)  detrimental effects on the environment. 
C)  increased food prices and an increase in world hunger. 
D)  All of the above.

Question 10

Between 1930 and 1933, the prices received by farmers tended to:

Accepted Answer

A)  fluctuate up and down about equally. 
B)  decrease. 
C)  remain constant. 
D)  increase. 
A)  fluctuate up and down about equally. 
B)  decrease. 
C)  remain constant. 
D)  increase.

Question 11

-(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 12

The equilibrium price established by demand and supply could be called a "just right" price because:

Accepted Answer

A)  any price above it would be "too high" and cause a shortage. 
B)  any price below it would be "too low" and cause a surplus. 
C)  it is the only price where the quantity demanded and the quantity supplied are equal. 
D)  of all of the above. 
A)  any price above it would be "too high" and cause a shortage. 
B)  any price below it would be "too low" and cause a surplus. 
C)  it is the only price where the quantity demanded and the quantity supplied are equal. 
D)  of all of the above.

Question 13

-(Exhibit: Rent Controls) If rent controls are imposed, they will most likely be set at either _______ or _______ .

Accepted Answer

A)  Rent0; Rent1  
B)  Rent1; Rent3  
C)  Rent3; Rent4  
D)  All of the above are equally likely rent control levels. 
A)  Rent0; Rent1  
B)  Rent1; Rent3  
C)  Rent3; Rent4  
D)  All of the above are equally likely rent control levels.

Question 14

Third-party payers for health-care services include payments made by:

Accepted Answer

A)  doctors. 
B)  patients. 
C)  hospitals. 
D)  insurance companies. 
A)  doctors. 
B)  patients. 
C)  hospitals. 
D)  insurance companies.

Question 15

Discuss in some detail basic alternatives that have been proposed to curtail the rise in health-care costs.

Accepted Answer

There have been several proposed alterna

Question 16

In the market for personal computers and in the stock market:

Accepted Answer

A)  supply and demand shifts change prices and quantities. 
B)  persistent shortages and surpluses rarely exist. 
C)  in response to shifts in demand and supply, equilibrium is restored quickly. 
D)  all of the above are true. 
A)  supply and demand shifts change prices and quantities. 
B)  persistent shortages and surpluses rarely exist. 
C)  in response to shifts in demand and supply, equilibrium is restored quickly. 
D)  all of the above are true.

Question 17

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 18

In markets with third-party payers,

Accepted Answer

A)  prices consumers pay directly for the goods and services they consume decrease. 
B)  prices suppliers receive for the goods and services they provide increase . 
C)  total spending increases. 
D)  All of the above. 
A)  prices consumers pay directly for the goods and services they consume decrease. 
B)  prices suppliers receive for the goods and services they provide increase . 
C)  total spending increases. 
D)  All of the above.

Question 19

In addition to setting prices, the government has attempted to help farmers by:

Accepted Answer

A)  restricting output. 
B)  essentially paying them not to produce. 
C)  creating some surpluses, buying them, and also restricting output. 
D)  doing all of the above. 
A)  restricting output. 
B)  essentially paying them not to produce. 
C)  creating some surpluses, buying them, and also restricting output. 
D)  doing all of the above.

Question 20

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

Accepted Answer

A)  health-care costs and spending are too high. 
B)  too few resources are devoted to health care. 
C)  physicians have no control over prices. 
D)  everyone has an excessive amount of insurance. 
A)  health-care costs and spending are too high. 
B)  too few resources are devoted to health care. 
C)  physicians have no control over prices. 
D)  everyone has an excessive amount of insurance.

All health insurance plans charge the same and require subscribers to pay the same percentage of the costs of health care they consume.

-(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers:

A feature of the health-care market is:

During the 1930s, the role of the federal government in the U.S. agricultural industry:

The relationship between the value and price of a stock suggests that:

One source of high health-care costs is the:

-(Exhibit: The Market for Health Care) The quantity Q₂ is available at price:

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

Which of the following is a criticism that has been raised of government spending in support of corn-based ethanol?

Between 1930 and 1933, the prices received by farmers tended to:

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

The equilibrium price established by demand and supply could be called a "just right" price because:

-(Exhibit: Rent Controls) If rent controls are imposed, they will most likely be set at either _ or _ .

Third-party payers for health-care services include payments made by:

Discuss in some detail basic alternatives that have been proposed to curtail the rise in health-care costs.

In the market for personal computers and in the stock market:

The Affordable Health Care Act of 2010:

In markets with third-party payers,

In addition to setting prices, the government has attempted to help farmers by:

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

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

All health insurance plans charge the same and require subscribers to pay the same percentage of the costs of health care they consume.

-(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers:

A feature of the health-care market is:

During the 1930s, the role of the federal government in the U.S. agricultural industry:

The relationship between the value and price of a stock suggests that:

One source of high health-care costs is the:

-(Exhibit: The Market for Health Care) The quantity Q2 is available at price:

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

Which of the following is a criticism that has been raised of government spending in support of corn-based ethanol?

Between 1930 and 1933, the prices received by farmers tended to:

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

The equilibrium price established by demand and supply could be called a "just right" price because:

-(Exhibit: Rent Controls) If rent controls are imposed, they will most likely be set at either _______ or _______ .

Third-party payers for health-care services include payments made by:

Discuss in some detail basic alternatives that have been proposed to curtail the rise in health-care costs.

In the market for personal computers and in the stock market:

The Affordable Health Care Act of 2010:

In markets with third-party payers,

In addition to setting prices, the government has attempted to help farmers by:

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

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

-(Exhibit: The Market for Health Care) The quantity Q₂ is available at price:

-(Exhibit: Rent Controls) If rent controls are imposed, they will most likely be set at either _ or _ .