Exam 1: Overview of Economics

Descriptive economics involves conducting a cause-and-effect analysis.

If the quantity of physician visits increases when the price of physician visits decreases, we can conclude the causal relation is:

If a $200 increase in price is associated with an increase in quantity of 50 visits, with regard to the quantity axis the slope is:

What is the true test of an explanatory model?

Scarcity is defined as the excessive quantity of available goods and services compared with the amounts that people desire.

The size of the uninsured and underinsured population in the United States has become an indication of the access problems in the US healthcare system.

What is the purpose of graphic analysis?

In causal terms, slope can be expressed as the magnitude or sensitivity of response.

The three major tasks of economics are:

Perhaps the most glaring deficiency in the United States today is:

Economics is the discipline that deals with the consequences of resource scarcity.

Define the discipline of health economics.

The purpose of a model is to illustrate relations between economic variables.

Scarcity is a major cause of many of today's healthcare system problems.