Question 1

Health care is a normal good.

Accepted Answer

A) True 
 B)False

Question 2

A market price floor for wheat:

Accepted Answer

A)   increases the price paid by consumers.
B)   decreases the price paid by consumers.
C)   decreases the price received by farmers.
D)   does not change the price received by farmers.E) All of the above
F) C) and D)

Question 3

As the fraction of health-care costs paid by consumers falls, their quantity of health-care services consumed increases.

Accepted Answer

A) True 
 B)False

Question 4

According to the textbook, much of the discussion about the health-care "problem" in the United States has focused on:

Accepted Answer

A)   the inability of doctors to provide adequate health-care services.
B)   rising spending for health care.
C)   the shortage of adequate space in hospitals.
D)   the surplus of nurses.E) B) and C)
F) A) and D) B

Question 5

-(Exhibit: Third-Party Payers)  When the price of $20 per visit becomes available to the consumer because of insurance:

Accepted Answer

A)   health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance.
B)   health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance .
C)   the new quantity of physician office visits is 1 million visits per week.
D)   both A and C are true.E) All of the above
F) A) and D)

Question 6

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

Accepted Answer

A)   doctors.
B)   patients.
C)   hospitals.
D)   insurance companies.E) C) and D)
F) A) and C)

Question 7

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.E) B) and C)
F) All of the above

Question 8

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.E) All of the above
F) B) and D) A

Question 9

Third-party payments have led to an increase in the price and quantity of health care in the United States.

Accepted Answer

A) True 
 B)False

Question 10

The Affordable Health Care Act of 2010:

Accepted Answer

A)   requires that individuals purchase health insurance.
B)   requires that insurance companies provide coverage for children on their parent's policies up to the age of 26.
C)   bars insurance companies from denying coverage based on pre-existing conditions.
D)   all of the above.E) A) and D)
F) A) and C) D

Question 11

A market price support policy for crops establishes a price floor, which:

Accepted Answer

A)   decreases the price paid by consumers.
B)   does not change the price paid by consumers.
C)   increases the price received by farmers.
D)   decreases the price received by farmers.E) None of the above
F) All of the above

Question 12

One source of high health care costs is the:

Accepted Answer

A)   relatively large fraction of health care expenditures paid directly by patients.
B)   relatively large fraction of health care expenditures paid by third-party payers.
C)   deficiency in the availability of hospital beds.
D)   deficiency in the availability of diagnostic tests.E) A) and D)
F) C) and D)

Question 13

A cost that farm subsidies and price floors imposes on the rest of the economy is:

Accepted Answer

A)   excessively mobile farm resources.
B)   higher consumer commodity prices.
C)   less government-funded agricultural research.
D)   efficient farmers that leave the farming industry.E) C) and D)
F) A) and B)

Question 14

The equilibrium price in a market is established subject to the all other things unchanged condition and, therefore, very well may change due to:

Accepted Answer

A)   a change in the price of the good.
B)   a change in the quantity of the good.
C)   a change in the price of resource inputs used to produce the good.
D)   any of the above.E) B) and C)
F) All of the above

Question 15

Rent controls:

Accepted Answer

A)   almost always help low-income families find low-cost housing.
B)   often help high-income families.
C)   cause the quantity supplied to exceed the quantity demanded.
D)   result in all of the above.E) B) and C)
F) A) and D)

Question 16

An area of concern in the provision of health care in the United States is that:

Accepted Answer

A)   health-care costs and spending are too high.
B)   too few resources are devoted to health care.
C)   physicians have no control over prices.
D)   everyone has an excessive amount of insurance.E) None of the above
F) B) and C)

Question 17

According to the textbook, which of the following are suggestions to limit health-care spending?

Accepted Answer

A)   requiring patients to pay a larger share
B)   government regulation
C)   the use of insurance companies that limit spending
D)   all of the aboveE) B) and C)
F) A) and D)

Question 18

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

Accepted Answer

A)   An increase in the number of people insured.
B)   Increased tax subsidies for health care.
C)   An increase in the productivity of doctors.
D)   All of the above would increase the supply of health care.E) None of the above
F) A) and D)

Question 19

What are the basic provisions of the Affordable Health Care Act of 2010?

Accepted Answer

The Affordable Care Act of 2010, also kn...

Question 20

Health care is a(n) :

Accepted Answer

A)   abnormal good.
B)   superior good.
C)   normal good.
D)   good where higher incomes lead to less spending.E) A) and D)
F) B) and C)

Exam 4: Applications of Demand and Supply

Health care is a normal good.

Correct AnswerverifiedShow Answer

A market price floor for wheat:

Correct AnswerverifiedShow Answer

As the fraction of health-care costs paid by consumers falls, their quantity of health-care services consumed increases.

Correct AnswerverifiedShow Answer

According to the textbook, much of the discussion about the health-care "problem" in the United States has focused on:

Correct AnswerverifiedB

-(Exhibit: Third-Party Payers) When the price of $20 per visit becomes available to the consumer because of insurance:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Farm legislation has historically tried to increase farm income by:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

Third-party payments have led to an increase in the price and quantity of health care in the United States.

Correct AnswerverifiedShow Answer

The Affordable Health Care Act of 2010:

Correct AnswerverifiedD

A market price support policy for crops establishes a price floor, which:

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One source of high health care costs is the:

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A cost that farm subsidies and price floors imposes on the rest of the economy is:

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The equilibrium price in a market is established subject to the all other things unchanged condition and, therefore, very well may change due to:

Correct AnswerverifiedShow Answer

Rent controls:

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An area of concern in the provision of health care in the United States is that:

Correct AnswerverifiedShow Answer

According to the textbook, which of the following are suggestions to limit health-care spending?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the basic provisions of the Affordable Health Care Act of 2010?

Correct AnswerAnswered by ExamLex AIThe Affordable Care Act of 2010, also kn...View AnswerShow Answer

Health care is a(n) :

Correct AnswerverifiedShow Answer

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B

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A

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D

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Answered by ExamLex AI
The Affordable Care Act of 2010, also kn...
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Correct Answer
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