Question 1

When the patient _______ information,the physician demand curve becomes _____.

Accepted Answer

A) Lacks;more elastic 
B) Lacks;less elastic 
C) Lacks;has no effect on demand 
D) More;less 
A) Lacks;more elastic 
B) Lacks;less elastic 
C) Lacks;has no effect on demand 
D) More;less B

Question 2

If a hospital is experiencing economies of scale,

Accepted Answer

A) Its average cost curve is positively sloped as output increases. 
B) Its average cost curve is negatively sloped as output increases. 
C) It should reduce its output level to lower costs. 
D) Quality is falling as output is rising. 
E) Both b and c are true. 
A) Its average cost curve is positively sloped as output increases. 
B) Its average cost curve is negatively sloped as output increases. 
C) It should reduce its output level to lower costs. 
D) Quality is falling as output is rising. 
E) Both b and c are true. B

Question 3

Oligopoly is described as

Accepted Answer

A) Few identical firms and intense price competition 
B) Many differentiated firms and soft price competition 
C) Many differentiated firms and intense price competition 
D) Few identical firms and soft price competition 
A) Few identical firms and intense price competition 
B) Many differentiated firms and soft price competition 
C) Many differentiated firms and intense price competition 
D) Few identical firms and soft price competition A

Question 4

Economies of scale

Accepted Answer

A) Might be more easily realized in an emergency room rather than a physician's office. 
B) Depend on the spreading of minimal fixed costs over a number of procedures. 
C) Depend on the spreading of high variable costs over a number of procedures. 
D) Depend on the spreading of high marginal costs over a number of procedures. 
E) Depend on the spreading of high fixed costs over a number of procedures. 
A) Might be more easily realized in an emergency room rather than a physician's office. 
B) Depend on the spreading of minimal fixed costs over a number of procedures. 
C) Depend on the spreading of high variable costs over a number of procedures. 
D) Depend on the spreading of high marginal costs over a number of procedures. 
E) Depend on the spreading of high fixed costs over a number of procedures.

Question 5

In the short run,profits can

Accepted Answer

A) Exceed normal profit 
B) Be equal to normal profit 
C) Be below normal profit 
D) All of the above 
A) Exceed normal profit 
B) Be equal to normal profit 
C) Be below normal profit 
D) All of the above

Question 6

The average fixed cost curve is

Accepted Answer

A) U shaped with output 
B) Always increasing with output 
C) Always decreasing with output 
D) None of the above 
A) U shaped with output 
B) Always increasing with output 
C) Always decreasing with output 
D) None of the above

Question 7

One of the benefits of a national health insurance program is that it guarantees a large insurance pool.Why is this a benefit? What economic principle is being addressed here?

Accepted Answer

First,a large insurance pool will give t

Question 8

Suppose hospital production (Y)is a function of physicians (P)and nurses (N).Let the hospital production function be   .The production demonstrates.

Accepted Answer

A) Increasing returns to scale 
B) Constant returns to scale 
C) Decreasing returns to scale 
D) Both increasing and decreasing returns to scale 
A) Increasing returns to scale 
B) Constant returns to scale 
C) Decreasing returns to scale 
D) Both increasing and decreasing returns to scale

Question 9

If the marginal product of the last nurse is equal to 1/N.⁵ and the wage/price ratio is equal to 1/2,then the optimal number of nurses is

Accepted Answer

A) 2 
B) 4 
C) 8 
D) 16 
A) 2 
B) 4 
C) 8 
D) 16

Question 10

If the demand for hospital visits in a city are 10,000 and a typical physician office can accommodate 50 patients per day,the number of physician offices is

Accepted Answer

A) 2000 
B) 200 
C) 20 
D) Cannot be determined 
A) 2000 
B) 200 
C) 20 
D) Cannot be determined

Question 11

Which market structure is characterized by a large number of differentiated firms?

Accepted Answer

A) Monopolistic competition 
B) Monopoly 
C) Oligopoly 
D) Perfect competition 
A) Monopolistic competition 
B) Monopoly 
C) Oligopoly 
D) Perfect competition

Question 12

Suppose there are two hospitals in the market.The inverse demand for Hospital 1 is P = 100 - 2Q and the inverse demand for Hospital 2 is P = 100 - Q.What is the inverse market demand?

Accepted Answer

A) P = 100 - 3Q 
B) P = 200 - 3Q 
C) P = 100 - 2 / 3Q 
D) P = 200 - 1 / 3Q 
A) P = 100 - 3Q 
B) P = 200 - 3Q 
C) P = 100 - 2 / 3Q 
D) P = 200 - 1 / 3Q

Question 13

Hospitals compete mainly in a _________ market.

Accepted Answer

A) Product market 
B) Quality market 
C) Geographic market 
D) Price market 
A) Product market 
B) Quality market 
C) Geographic market 
D) Price market

Question 14

Using the graph below,answer the following questions:
   
a)Label supply and demand curve.
b)Indicate the equilibrium price and quantity using MC1 (use P1 and Q1).
c)Indicate the equilibrium price and quantity using MC2 (use P2 and Q2).
d)Using letters and P1 and Q1,what is consumer surplus when MC = MC1?
e)Using letters and P1 and Q1,what is producer surplus when MC = MC1?
f)Using letters and P2 and Q2,what is consumer surplus when MC = MC2?
g)Using letters and P2 and Q2,what is producer surplus when MC = MC2?
h)Who is made worse off by the shift from MC1 to MC2,producers or consumers?
Why?

Accepted Answer

a.The demand curve is the marginal benef

Question 15

If a hospital displays decreasing average costs on output,should the hospital be regulated even though it is more efficient?

Accepted Answer

Yes,the decreasing average cost on outpu

Question 16

Monopolistic competition is described as.

Accepted Answer

A) Many identical firms and intense price competition 
B) Many differentiated firms and soft price competition 
C) Many differentiated firms and intense price competition 
D) Few identical firms and soft price competition 
A) Many identical firms and intense price competition 
B) Many differentiated firms and soft price competition 
C) Many differentiated firms and intense price competition 
D) Few identical firms and soft price competition

Question 17

The cost of a national health insurance program would be____ and the availability of services _______ when supply is more ________.

Accepted Answer

A) Greater;diminished;inelastic 
B) Less;diminished;inelastic 
C) Greater;diminished;elastic 
D) Less;enhanced;inelastic 
A) Greater;diminished;inelastic 
B) Less;diminished;inelastic 
C) Greater;diminished;elastic 
D) Less;enhanced;inelastic

Question 18

Assume that the marginal productivity of an RN is 10 patients and the marginal productivity of an LPN is 2.5 patients.The wage of an LPN is $20 per hour.Find the equilibrium wage for RNs.

Accepted Answer

We know th

Question 19

The marginal cost curve is upward sloping because

Accepted Answer

A) Total productivity is rising with production 
B) Total productivity is falling with production 
C) Marginal productivity is rising with production 
D) Marginal productivity is falling with production 
A) Total productivity is rising with production 
B) Total productivity is falling with production 
C) Marginal productivity is rising with production 
D) Marginal productivity is falling with production

Question 20

Suppose a hospital is interested in opening several outpatient clinics.Let n be the number of clinics.The marginal return from each clinic is R = 0.8-0.2n.If the current real interest rate is 10%,how many clinics will be opened up? If each clinic depreciates at a rate of 30%,how many clinics will be open?

Accepted Answer

a.Recall that if the marginal rate of re

When the patient ___ information,the physician demand curve becomes _.

If a hospital is experiencing economies of scale,

Oligopoly is described as

Economies of scale

In the short run,profits can

The average fixed cost curve is

One of the benefits of a national health insurance program is that it guarantees a large insurance pool.Why is this a benefit? What economic principle is being addressed here?

Suppose hospital production (Y)is a function of physicians (P)and nurses (N).Let the hospital production function be .The production demonstrates.

If the marginal product of the last nurse is equal to 1/N.⁵ and the wage/price ratio is equal to 1/2,then the optimal number of nurses is

If the demand for hospital visits in a city are 10,000 and a typical physician office can accommodate 50 patients per day,the number of physician offices is

Which market structure is characterized by a large number of differentiated firms?

Suppose there are two hospitals in the market.The inverse demand for Hospital 1 is P = 100 - 2Q and the inverse demand for Hospital 2 is P = 100 - Q.What is the inverse market demand?

Hospitals compete mainly in a _________ market.

If a hospital displays decreasing average costs on output,should the hospital be regulated even though it is more efficient?

Monopolistic competition is described as.

The cost of a national health insurance program would be and the availability of services _ when supply is more ______.

Assume that the marginal productivity of an RN is 10 patients and the marginal productivity of an LPN is 2.5 patients.The wage of an LPN is $20 per hour.Find the equilibrium wage for RNs.

The marginal cost curve is upward sloping because

An Introduction to the Economics of Medical Care

The Role of Government in Health and Medical Care

Health Policy and the Legislative Marketplace

The Production of Health: the Impact of Medical Services on Health

An Overview of the Medical Care Sector

The Demand for Medical Care

The Demand for Health Insurance

Market Competition in Medical Care

The Market for Health Insurance: Its Performance and Structure

The Physician Services Market

The Market for Hospital Services

The Pharmaceutical Industry

Health Manpower Shortages and Surpluses: Definitions, measurement, and Policies

The Market for Physician Manpower

The Market for Medical Education: Equity and Efficiency

The Market for Registered Nurses

National Health Insurance: an Approach to the Redistribution of Medical Care

Filters

Exam 8: The Supply of Medical Care: an Overview

When the patient _______ information,the physician demand curve becomes _____.

If a hospital is experiencing economies of scale,

Oligopoly is described as

Economies of scale

In the short run,profits can

The average fixed cost curve is

One of the benefits of a national health insurance program is that it guarantees a large insurance pool.Why is this a benefit? What economic principle is being addressed here?

Suppose hospital production (Y)is a function of physicians (P)and nurses (N).Let the hospital production function be .The production demonstrates.

If the marginal product of the last nurse is equal to 1/N.⁵ and the wage/price ratio is equal to 1/2,then the optimal number of nurses is

If the demand for hospital visits in a city are 10,000 and a typical physician office can accommodate 50 patients per day,the number of physician offices is

Which market structure is characterized by a large number of differentiated firms?

Suppose there are two hospitals in the market.The inverse demand for Hospital 1 is P = 100 - 2Q and the inverse demand for Hospital 2 is P = 100 - Q.What is the inverse market demand?

Hospitals compete mainly in a _________ market.

If a hospital displays decreasing average costs on output,should the hospital be regulated even though it is more efficient?

Monopolistic competition is described as.

The cost of a national health insurance program would be____ and the availability of services _______ when supply is more ________.

Assume that the marginal productivity of an RN is 10 patients and the marginal productivity of an LPN is 2.5 patients.The wage of an LPN is $20 per hour.Find the equilibrium wage for RNs.

The marginal cost curve is upward sloping because

An Introduction to the Economics of Medical Care

The Role of Government in Health and Medical Care

Health Policy and the Legislative Marketplace

The Production of Health: the Impact of Medical Services on Health

An Overview of the Medical Care Sector

The Demand for Medical Care

The Demand for Health Insurance

Market Competition in Medical Care

The Market for Health Insurance: Its Performance and Structure

The Physician Services Market

The Market for Hospital Services

The Pharmaceutical Industry

Health Manpower Shortages and Surpluses: Definitions, measurement, and Policies

The Market for Physician Manpower

The Market for Medical Education: Equity and Efficiency

The Market for Registered Nurses

National Health Insurance: an Approach to the Redistribution of Medical Care

Filters

When the patient ___ information,the physician demand curve becomes _.

The cost of a national health insurance program would be and the availability of services _ when supply is more ______.