Question 1

How do we determine economic efficiency in the supply of medical schools?

Accepted Answer

The optimal quantity of output in an industry occurs when the cost of producing the last unit equals the additional benefits from consuming it.We must consider both private and public benefits as well as cost.

Question 2

Income Contingent Loan Repayment Plans (ICLRP)have been proposed to encourage medical school graduates to

Accepted Answer

A) Locate to a rural area 
B) Work with underserved populations 
C) Locate to an urban area 
D) None of the above 
A) Locate to a rural area 
B) Work with underserved populations 
C) Locate to an urban area 
D) None of the above D

Question 3

According to the graph, the market needs

Accepted Answer

A) No government intervention 
B) A tax on production 
C) A subsidy on production 
A) No government intervention 
B) A tax on production 
C) A subsidy on production B

Question 4

An increase in the number of years needed to finish medical school

Accepted Answer

A) Shifts the demand for medical school to the left and decreases the number of physicians 
B) Shifts the demand for medical school to the right and decreases the number of physicians 
C) Leads to a decrease in quantity demanded 
D) Leads to an increase in quantity demanded 
A) Shifts the demand for medical school to the left and decreases the number of physicians 
B) Shifts the demand for medical school to the right and decreases the number of physicians 
C) Leads to a decrease in quantity demanded 
D) Leads to an increase in quantity demanded

Question 5

What would be an economic justification for subsidizing a medical education?

Accepted Answer

If a medical education produces a positi

Question 6

A new health reform bill proposes to reduce the shortage in primary care physicians by increasing the number of medical schools.This will lead to

Accepted Answer

A) An increase in the supply curve 
B) An increase in the quantity demanded for medical school 
C) Both a and b 
D) Neither a nor b 
A) An increase in the supply curve 
B) An increase in the quantity demanded for medical school 
C) Both a and b 
D) Neither a nor b

Question 7

According to the graph, the social outcome is

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 8

Large government subsidies allow medical schools to set tuition

Accepted Answer

A) Higher than the competitive price 
B) Lower than the competitive price but above cost 
C) Lower than the competitive price and below cost 
D) None of the above 
A) Higher than the competitive price 
B) Lower than the competitive price but above cost 
C) Lower than the competitive price and below cost 
D) None of the above

Question 9

What are some of the concerns associated with medical school tuition that reflect the true cost of a medical education?

Accepted Answer

A few policy makers are concerned that t

Question 10

The net effect of the externality on welfare is equal to

Accepted Answer

A) d + f 
B) i 
C) h 
D) i + d + f + h 
A) d + f 
B) i 
C) h 
D) i + d + f + h

Question 11

Currently,tuition paid by medical students constitutes

Accepted Answer

A) Less than 5% of total revenue 
B) Less than 10% of total revenue 
C) Less than 15% of total revenue 
D) Less than 20% of total revenue 
A) Less than 5% of total revenue 
B) Less than 10% of total revenue 
C) Less than 15% of total revenue 
D) Less than 20% of total revenue

Question 12

Currently,there is an

Accepted Answer

A) Excess supply of medical schools as indicated by the low price 
B) Excess demand for medical education as indicated by the excess number of applications to medical school 
C) Both a and b 
D) Neither a nor b 
A) Excess supply of medical schools as indicated by the low price 
B) Excess demand for medical education as indicated by the excess number of applications to medical school 
C) Both a and b 
D) Neither a nor b

Question 13

Tuition and fees cover

Accepted Answer

A) 100% of medical school cost 
B) 75% to 50% of medical school cost 
C) 50% to 25% of medical school cost 
D) Less than 25% of medical school cost 
A) 100% of medical school cost 
B) 75% to 50% of medical school cost 
C) 50% to 25% of medical school cost 
D) Less than 25% of medical school cost

Question 14

Let the private demand for medical research be P = 90-Q and let the supply for medical research equal P = Q.
a.Find the equilibrium price and quantity.
b.Suppose each unit of medical research has a positive externality such that the marginal social benefit is P = 90 - .5Q.What is the socially optimal level of research?

Accepted Answer

a.The answer is found by setting demand

Question 15

If medical schools are not using tuition to ration students,what mechanism is being used to ration students and to what end?

Accepted Answer

Medical schools are believed to be maxim

Question 16

According to Prabhu and Edelman (2009),the private rate of return for a physician is

Accepted Answer

A) 12 to 10% 
B) 9 to 7% 
C) 6 to 4% 
D) 3 to 1% 
A) 12 to 10% 
B) 9 to 7% 
C) 6 to 4% 
D) 3 to 1%

Question 17

The use of fluorine in public tap water to reduce cavities is an example of a

Accepted Answer

A) Negative externality 
B) Positive externality 
C) Public good 
D) Private good 
A) Negative externality 
B) Positive externality 
C) Public good 
D) Private good

Question 18

According to the graph, the private outcome is

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 19

According to the graph above, the market is experiencing

Accepted Answer

A) A positive externality 
B) A negative externality 
C) A private outcome that is the same as the socially optimal outcome 
A) A positive externality 
B) A negative externality 
C) A private outcome that is the same as the socially optimal outcome

Question 20

On average,medical school subsidies benefit people from

Accepted Answer

A) Higher-income families most 
B) Middle-income families most 
C) Lower-income families most 
A) Higher-income families most 
B) Middle-income families most 
C) Lower-income families most

How do we determine economic efficiency in the supply of medical schools?

Income Contingent Loan Repayment Plans (ICLRP)have been proposed to encourage medical school graduates to

According to the graph, the market needs

An increase in the number of years needed to finish medical school

What would be an economic justification for subsidizing a medical education?

A new health reform bill proposes to reduce the shortage in primary care physicians by increasing the number of medical schools.This will lead to

According to the graph, the social outcome is

Large government subsidies allow medical schools to set tuition

What are some of the concerns associated with medical school tuition that reflect the true cost of a medical education?

The net effect of the externality on welfare is equal to

Currently,tuition paid by medical students constitutes

Currently,there is an

Tuition and fees cover

If medical schools are not using tuition to ration students,what mechanism is being used to ration students and to what end?

According to Prabhu and Edelman (2009),the private rate of return for a physician is

The use of fluorine in public tap water to reduce cavities is an example of a

According to the graph, the private outcome is

According to the graph above, the market is experiencing

On average,medical school subsidies benefit people from

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

The Supply of Medical Care: an Overview

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 Registered Nurses

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

Filters

Exam 16: The Market for Medical Education: Equity and Efficiency

How do we determine economic efficiency in the supply of medical schools?

Income Contingent Loan Repayment Plans (ICLRP)have been proposed to encourage medical school graduates to

According to the graph, the market needs

An increase in the number of years needed to finish medical school

What would be an economic justification for subsidizing a medical education?

A new health reform bill proposes to reduce the shortage in primary care physicians by increasing the number of medical schools.This will lead to

According to the graph, the social outcome is

Large government subsidies allow medical schools to set tuition

What are some of the concerns associated with medical school tuition that reflect the true cost of a medical education?

The net effect of the externality on welfare is equal to

Currently,tuition paid by medical students constitutes

Currently,there is an

Tuition and fees cover

If medical schools are not using tuition to ration students,what mechanism is being used to ration students and to what end?

According to Prabhu and Edelman (2009),the private rate of return for a physician is

The use of fluorine in public tap water to reduce cavities is an example of a

According to the graph, the private outcome is

According to the graph above, the market is experiencing

On average,medical school subsidies benefit people from

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

The Supply of Medical Care: an Overview

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 Registered Nurses

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

Filters