Question 1

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 2

The Energy Policy Act of 2005 called for _____ production of ethanol using _____:

Accepted Answer

A)   increased; loan guarantees, support for research, and tax credits
B)   increased; price ceilings
C)   decreased; loan guarantees, support for research, and tax credits
D)   dereased; price floorsE) A) and B)
F) B) and C)

Question 3

0: A)  the shortage of rental units is Q2 to Q0. B)  some renters would be willing to pay a price as high as Rent4 for Q0 units. C)  no one would have to pay a higher actual price than Rent0 nor would anyone be willing to do so. D)  there would be a shortage of rental units, but it is impossible to tell how large the shortage is based on the information provided." class="answers-bank-image d-inline" rel="preload" >
-(Exhibit: Rent Controls)  If rent controls are set at Rent0:

Accepted Answer

A)   the shortage of rental units is Q2 to Q0.
B)   some renters would be willing to pay a price as high as Rent4 for Q0 units.
C)   no one would have to pay a higher actual price than Rent0 nor would anyone be willing to do so.
D)   there would be a shortage of rental units, but it is impossible to tell how large the shortage is based on the information provided.E) A) and D)
F) A) and C)

Question 4

-(Exhibit: Third-Party Payers)  Suppose insurance lowers the price consumers pay to $20 per visit. Compared to the situation without insurance, this would:

Accepted Answer

A)   reduce the equilibrium price to $20.
B)   reduce the quantity demanded to 2 million visits per week.
C)   increase the quantity demanded to 3 million visits per week.
D)   do none of the above.E) All of the above
F) C) and D)

Question 5

A ceiling price set in the policy of rent controls:

Accepted Answer

A)   will be set at a price above the equilibrium price.
B)   may result in some people who rent out units to leave the business because they cannot cover costs.
C)   will lead to rental units being higher in quality because landlords are guaranteed a high price.
D)   will create a surplus of housing.E) B) and C)
F) B) and D)

Question 6

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.E) B) and D)
F) B) and C)

Question 7

Health care is a normal good.

Accepted Answer

A) True 
 B)False

Question 8

Health care is an inferior good.

Accepted Answer

A) True 
 B)False

Question 9

Rent controls set a price ceiling below the equilibrium price and therefore:

Accepted Answer

A)   quantity supplied exceeds the quantity demanded.
B)   quantity demanded exceeds the quantity supplied.
C)   a surplus of rental units will result.
D)   poor people will obviously and clearly be helped.E) None of the above
F) A) and B)

Question 10

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.E) B) and C)
F) None of the above

Question 11

Increased spending on consumer goods such as refrigerators, TV sets, and other items of furniture is considered desirable. Why, then, is there so much concern, even frustration, about the dramatic increase in health-care expenditures?

Accepted Answer

Increased spending on consumer goods suc...

Question 12

An arrangement in which consumers choose their health-care services while other institutions pay a share of the cost of those services is called a(n)  ________ payer system.

Accepted Answer

A)   provider fees
B)   insurance premiums
C)   third-party
D)   catastrophic insuranceE) B) and C)
F) A) and B)

Question 13

Eliminating third-party payer systems is most likely to ________ the quantity of health care ________.

Accepted Answer

A)   increase; demanded
B)   decrease; demanded
C)   have no effect on; demanded
D)   increase; suppliedE) B) and C)
F) A) and D)

Question 14

Technological improvements in the health care industry have contributed to the increase in health care costs.

Accepted Answer

A) True 
 B)False

Question 15

-(Exhibit: Third-party payers)  At a price of $60 with a third party payer, the total cost of health-care services compared to the price that would prevail if there were no third-party payers has:

Accepted Answer

A)   decreased from $180 million to $80 million.
B)   increased from $80 million to $180 million.
C)   decreased from $180 million to $80 million, and consumers pay $60 million
D)   increased to $180 million, and insurance pays $60 million.E) B) and C)
F) A) and B)

Question 16

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) A) and C)
F) C) and D)

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 D)
F) B) and C)

Question 18

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) C) and D)
F) All of the above

Question 19

Which of the following statements is (are)  true?

Accepted Answer

A)   In the last few decades health-care spending has grown dramatically.
B)   Health-care costs have grown relative to an increasing total output.
C)   Health-care costs account for more than two and a half times the share of total output that they did in 1960.
D)   All of the above are true.E) All of the above
F) A) and B)

Question 20

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) B) and C)
F) A) and B)

Exam 4: Applications of Demand and Supply

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

Correct AnswerverifiedShow Answer

Economists classify health care as:

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Which of the following statements is (are) true?

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Health care is an inferior good.

Correct AnswerverifiedShow Answer

-(Exhibit: Third-Party Payers) Suppose insurance lowers the price consumers pay to $20 per visit. Compared to the situation without insurance, this would:

Correct AnswerverifiedShow Answer

An arrangement in which consumers choose their health-care services while other institutions pay a share of the cost of those services is called a(n) ________ payer system.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A ceiling price set in the policy of rent controls:

Correct AnswerverifiedShow Answer

A market price floor for wheat:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Health care is a normal good.

Correct AnswerverifiedShow Answer

-(Exhibit: Rent Controls) If rent controls are set at Rent0:

Correct AnswerverifiedShow Answer

Technological improvements in the health care industry have contributed to the increase in health care costs.

Correct AnswerverifiedShow Answer

-(Exhibit: Third-party payers) At a price of $60 with a third party payer, the total cost of health-care services compared to the price that would prevail if there were no third-party payers has:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Eliminating third-party payer systems is most likely to ________ the quantity of health care ________.

Correct AnswerverifiedShow Answer

The Energy Policy Act of 2005 called for _____ production of ethanol using _____:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Increased spending on consumer goods such as refrigerators, TV sets, and other items of furniture is considered desirable. Why, then, is there so much concern, even frustration, about the dramatic increase in health-care expenditures?

Correct AnswerAnswered by ExamLex AIIncreased spending on consumer goods suc...View AnswerShow Answer

Rent controls set a price ceiling below the equilibrium price and therefore:

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-(Exhibit: Rent Controls) If rent controls are set at Rent₀:

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Eliminating third-party payer systems is most likely to the quantity of health care .

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The Energy Policy Act of 2005 called for _ production of ethanol using _:

Correct Answer
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Increased spending on consumer goods suc...
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