Question 1

Which of the following would lead to an increase in the demand for health care?

Accepted Answer

A)  Physicians' productivity increases. 
B)  Medicare subsidies are lowered. 
C)  The average population age increases. 
D)  Subsidies for Medicare are reduced. 
A)  Physicians' productivity increases. 
B)  Medicare subsidies are lowered. 
C)  The average population age increases. 
D)  Subsidies for Medicare are reduced.

Question 2

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 3

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 4

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 5

Use the following to answer questions .
Exhibit: 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

A minimum price set above the equilibrium price is a:

Accepted Answer

A)  demand price. 
B)  supply price. 
C)  price floor. 
D)  price ceiling. 
A)  demand price. 
B)  supply price. 
C)  price floor. 
D)  price ceiling.

Question 7

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 8

Economists classify health care as:

Accepted Answer

A)  an inferior good. 
B)  a normal good. 
C)  a good with many close substitutes. 
D)  a good whose quantity changes considerably with a change in price. 
A)  an inferior good. 
B)  a normal good. 
C)  a good with many close substitutes. 
D)  a good whose quantity changes considerably with a change in price.

Question 9

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 10

The demand curve for stocks shows that:

Accepted Answer

A)  at lower prices, less stock will be purchased. 
B)  at lower prices, more people calculate that the expected value of the firm's future earnings justify the stock's purchase. 
C)  at lower prices, more stock will be offered on the market. 
D)  A and B are true. 
A)  at lower prices, less stock will be purchased. 
B)  at lower prices, more people calculate that the expected value of the firm's future earnings justify the stock's purchase. 
C)  at lower prices, more stock will be offered on the market. 
D)  A and B are true.

Question 11

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 12

The individual mandate provision of the Affordable Care Act of 2010 requires:

Accepted Answer

A)  nurses to provide medical services for individuals with pre-existing conditions. 
B)  doctors to provide medical services for individuals with pre-existing conditions. 
C)  hospitals to provide medical care to individuals who are not covered under group insurance plans from their employers. 
D)  individuals to purchase health insurance. 
A)  nurses to provide medical services for individuals with pre-existing conditions. 
B)  doctors to provide medical services for individuals with pre-existing conditions. 
C)  hospitals to provide medical care to individuals who are not covered under group insurance plans from their employers. 
D)  individuals to purchase health insurance.

Question 13

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 14

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 15

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 16

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 17

Use the following to answer questions .
Exhibit: The Market for Health Care  
-(Exhibit: The Market for Health Care) When the price of P2 becomes available to the consumer because of insurance:

Accepted Answer

A)  health-care costs are now OP3BQ2, of which OP3CQ2 is paid by consumers and P2P3BQ2 is paid by insurance. 
B)  health-care costs are now OP3BQ2, of which P2P3BQ2 is paid by consumers and OP2CQ2 is paid by insurance. 
C)  the new quantity of health care is Q2. 
D)  the new quantity of health care is Q1. 
A)  health-care costs are now OP3BQ2, of which OP3CQ2 is paid by consumers and P2P3BQ2 is paid by insurance. 
B)  health-care costs are now OP3BQ2, of which P2P3BQ2 is paid by consumers and OP2CQ2 is paid by insurance. 
C)  the new quantity of health care is Q2. 
D)  the new quantity of health care is Q1.

Question 18

In 2015, 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 19

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 20

Describe in general the health-care industry. In your discussion, explain the peculiarities of health care, demand and supply factors, and the major problems of the industry.

Accepted Answer

The health-care industry is a complex an

Which of the following would lead to an increase in the demand for health care?

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

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

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

Use the following to answer questions . Exhibit: 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:

A minimum price set above the equilibrium price is a:

Price controls:

Economists classify health care as:

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

The demand curve for stocks shows that:

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

The individual mandate provision of the Affordable Care Act of 2010 requires:

In the market for health care:

Farm legislation has historically tried to increase farm income by:

Economists in general agree that rent controls are:

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

Use the following to answer questions . Exhibit: The Market for Health Care -(Exhibit: The Market for Health Care) When the price of P₂ becomes available to the consumer because of insurance:

In 2015, the percentage of total output the United States devoted to health care was about ________ percent.

Those things held unchanged when an equilibrium price is established:

Describe in general the health-care industry. In your discussion, explain the peculiarities of health care, demand and supply factors, and the major problems of the industry.

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

Filters

Exam 4: Applications of Supply and Demand

Which of the following would lead to an increase in the demand for health care?

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

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

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

Use the following to answer questions . Exhibit: 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:

A minimum price set above the equilibrium price is a:

Price controls:

Economists classify health care as:

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

The demand curve for stocks shows that:

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

The individual mandate provision of the Affordable Care Act of 2010 requires:

In the market for health care:

Farm legislation has historically tried to increase farm income by:

Economists in general agree that rent controls are:

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

Use the following to answer questions . Exhibit: The Market for Health Care -(Exhibit: The Market for Health Care) When the price of P2 becomes available to the consumer because of insurance:

In 2015, the percentage of total output the United States devoted to health care was about ________ percent.

Those things held unchanged when an equilibrium price is established:

Describe in general the health-care industry. In your discussion, explain the peculiarities of health care, demand and supply factors, and the major problems of the industry.

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

Filters

Use the following to answer questions . Exhibit: The Market for Health Care -(Exhibit: The Market for Health Care) When the price of P₂ becomes available to the consumer because of insurance: