Question 1

-(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 2

The equilibrium price is often considered to be "just right" because:

Accepted Answer

A)  it equates the amount supplied with the amount demanded. 
B)  it does not result in a shortage. 
C)  it does not result in a surplus. 
D)  of all of the above. 
A)  it equates the amount supplied with the amount demanded. 
B)  it does not result in a shortage. 
C)  it does not result in a surplus. 
D)  of all of the above.

Question 3

In 2009, the percentage of total output the United States devoted to health care was about ________ percent.

Accepted Answer

A)  2 
B)  6 
C)  10 
D)  18 
A)  2 
B)  6 
C)  10 
D)  18

Question 4

In the market for health care:

Accepted Answer

A)  there has been no effect of the presence of third-party payers. 
B)  the effect of third-party payers decreases the price that consumers pay. 
C)  providers are encouraged to supply a greater quantity than they would without third-party payers. 
D)  B and C are true. 
A)  there has been no effect of the presence of third-party payers. 
B)  the effect of third-party payers decreases the price that consumers pay. 
C)  providers are encouraged to supply a greater quantity than they would without third-party payers. 
D)  B and C are true.

Question 5

-(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 6

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 7

Explain the reasons for the significant escalation in health-care costs over the last several decades.

Accepted Answer

There are several reasons for the signif

Question 8

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

Accepted Answer

A)  equilibrium price for health-care services is P2. 
B)  equilibrium quantity is Q2. 
C)  total amount spent on health-care services at the equilibrium price is OP3BQ2. 
D)  equilibrium price for health-care services is P1. 
A)  equilibrium price for health-care services is P2. 
B)  equilibrium quantity is Q2. 
C)  total amount spent on health-care services at the equilibrium price is OP3BQ2. 
D)  equilibrium price for health-care services is P1.

Question 9

Farm legislation has historically tried to increase farm income by:

Accepted Answer

A)  guaranteeing a minimum price to farmers. 
B)  imposing limits on production. 
C)  insulating farmers from fluctuations in prices. 
D)  doing all of the above. 
A)  guaranteeing a minimum price to farmers. 
B)  imposing limits on production. 
C)  insulating farmers from fluctuations in prices. 
D)  doing all of the above.

Question 10

A market price support policy establishes price ________ the market equilibrium.

Accepted Answer

A)  floors below 
B)  floors above 
C)  ceilings below 
D)  ceilings above 
A)  floors below 
B)  floors above 
C)  ceilings below 
D)  ceilings above

Question 11

An important reason for the rapid increase in output in the computer industry after 1980 was:

Accepted Answer

A)  the invention of the microchip. 
B)  a reduction in the size and cost of computers. 
C)  a great increase in the number of computer producers. 
D)  all of the above. 
A)  the invention of the microchip. 
B)  a reduction in the size and cost of computers. 
C)  a great increase in the number of computer producers. 
D)  all of the above.

Question 12

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 13

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

Accepted Answer

A)  doctors. 
B)  patients. 
C)  hospitals. 
D)  government. 
A)  doctors. 
B)  patients. 
C)  hospitals. 
D)  government.

Question 14

-(Exhibit: The Market for Health Care) At price P3 the total cost of health-care services compared to price P1 has increased from:

Accepted Answer

A)  OP3BQ2 to OP1AQ2. 
B)  OP1AQ1 to OP3BQ2. 
C)  OP3BQ2 to OP1AQ1, and consumers pay OP1AQ12. 
D)  OP1AQ1 to OP3BQ2, and insurance pays OP2CQ2. 
A)  OP3BQ2 to OP1AQ2. 
B)  OP1AQ1 to OP3BQ2. 
C)  OP3BQ2 to OP1AQ1, and consumers pay OP1AQ12. 
D)  OP1AQ1 to OP3BQ2, and insurance pays OP2CQ2.

Question 15

-(Exhibit: Rent Controls) Without rent controls, the equilibrium rent is _______ and the equilibrium quantity is _______ .

Accepted Answer

A)  Rent2; Q1  
B)  Rent1; Q1  
C)  Rent2; Q2  
D)  Rent3; Q3  
A)  Rent2; Q1  
B)  Rent1; Q1  
C)  Rent2; Q2  
D)  Rent3; Q3

Question 16

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 17

In 1960, the percentage of total output the United States devoted to health care was about ________ percent.

Accepted Answer

A)  2 
B)  5 
C)  10 
D)  13 
A)  2 
B)  5 
C)  10 
D)  13

-(Exhibit: Third-Party Payers) Three million physician office visits per week are available at a price of __________ per visit:

The equilibrium price is often considered to be "just right" because:

In 2009, the percentage of total output the United States devoted to health care was about ________ percent.

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

Explain the reasons for the significant escalation in health-care costs over the last several decades.

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

Farm legislation has historically tried to increase farm income by:

A market price support policy establishes price ________ the market equilibrium.

An important reason for the rapid increase in output in the computer industry after 1980 was:

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

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

-(Exhibit: The Market for Health Care) At price P₃ the total cost of health-care services compared to price P₁ has increased from:

-(Exhibit: Rent Controls) Without rent controls, the equilibrium rent is _ and the equilibrium quantity is _ .

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

In 1960, the percentage of total output the United States devoted to health care was about ________ percent.

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

-(Exhibit: Third-Party Payers) Three million physician office visits per week are available at a price of __________ per visit:

The equilibrium price is often considered to be "just right" because:

In 2009, the percentage of total output the United States devoted to health care was about ________ percent.

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

Explain the reasons for the significant escalation in health-care costs over the last several decades.

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

Farm legislation has historically tried to increase farm income by:

A market price support policy establishes price ________ the market equilibrium.

An important reason for the rapid increase in output in the computer industry after 1980 was:

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

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

-(Exhibit: The Market for Health Care) At price P3 the total cost of health-care services compared to price P1 has increased from:

-(Exhibit: Rent Controls) Without rent controls, the equilibrium rent is _______ and the equilibrium quantity is _______ .

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

In 1960, the percentage of total output the United States devoted to health care was about ________ percent.

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) Suppose insurance lowers the price consumers pay to P₂. Compared to the situation without insurance, this would:

-(Exhibit: The Market for Health Care) At price P₃ the total cost of health-care services compared to price P₁ has increased from:

-(Exhibit: Rent Controls) Without rent controls, the equilibrium rent is _ and the equilibrium quantity is _ .