Question 1

The downside to helping farmers through price supports and output restrictions has been that:

Accepted Answer

A)   consumers pay higher prices for food.
B)   citizens pay higher taxes to support the costs of the program.
C)   most federal subsidies have historically helped the rich farmers, not the poor.
D)   all of the above.E) B) and D)
F) B) and C)

Question 2

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

Question 3

A market price support policy attempts to assist the farm industry by:

Accepted Answer

A)   taxing the incomes of farmers.
B)   directly subsidizing the incomes of farmers.
C)   establishing price floors in farm output markets.
D)   reducing the amount of resources used in farm production.E) A) and C)
F) B) and C)

Question 4

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) None of the above
F) All of the above

Question 5

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 B)
F) A) and C)

Question 6

Use the following to answer question(s) : The Market for Health Care
 
-(Exhibit: The Market for Health Care)  Based on the exhibit and assuming that there are no third-party payers:

Accepted Answer

A)   the total amount spent on health services is OP₁AQ₁ at price P₁.
B)   the equilibrium price and quantity are P₃ and Q₂.
C)   at price P₂ there would be a surplus.
D)   A and B are true.E) A) and B)
F) All of the above

Question 7

The equilibrium price is often considered to be "just right" because:

Accepted Answer

A)   it equates the amount supplied with the amount demanded.
B)   it does not result in a shortage.
C)   it does not result in a surplus.
D)   of all of the above.E) None of the above
F) A) and B) D

Question 8

A market price support policy establishes price ________ the market equilibrium.

Accepted Answer

A)   floors below
B)   floors above
C)   ceilings below
D)   ceilings aboveE) A) and D)
F) A) and B)

Question 9

Explain the reasons for the significant escalation in health-care costs over the last several decades.

Accepted Answer

There are several reasons for the signif...

Question 10

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

Question 11

Which of the following statements concerning insurance for health-care services is true?

Accepted Answer

A)   Most workers purchase their own insurance.
B)   State governments are the providers of Medicare and Medicaid.
C)   In the United States, only private firms provide health insurance.
D)   Subscribers to insurance plans may pay a small percentage of the cost of the health care they consume.E) B) and C)
F) C) and D)

Question 12

Use the following to answer question(s) : Supply and Demand in Agriculture
 
-(Exhibit: Supply and Demand in Agriculture)  To help farmers:

Accepted Answer

A)   a price floor would be set at P₄, causing a surplus of Q₃ - Q₀.
B)   a price floor would be set at P₂, causing a surplus of Q₂ - Q₀.
C)   a price ceiling would be set at P₄, causing a surplus of Q₂ - Q₁.
D)   a price floor would be set at P₁, causing a shortage of Q₃ - Q₀.E) C) and D)
F) A) and D)

Question 13

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

Question 14

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) B) and D)
F) B) and C) C

Question 15

As discussed in the Case in Point on Arab spring and oil markets, after the official start of the recession in the U.S.in 2007, oil prices:

Accepted Answer

A)   began to fall because of decreased demand in China and India.
B)   began to fall because of decreased demand in the U.S.and Europe.
C)   began to rise because of increased demand in China and India.
D)   began to rise because of increased demand in the U.S.and Europe.E) A) and B)
F) A) and C)

Question 16

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 17

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

Accepted Answer

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

Question 18

Using a simple demand and supply model, discuss how insurance affects the health-care market.

Accepted Answer

In a simple demand and supply model, ins...

Question 19

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) None of the above
F) All of the above

Question 20

Use the following to answer question(s) : Third-Party Payers
 
-(Exhibit: Third-Party Payers)  Based on the exhibit, and assuming there are no third-party payers:

Accepted Answer

A)   the total amount spent on health services is $80 million per week.
B)   the equilibrium price and quantity are $60 and 3 million per week, respectively.
C)   At a price of $20, there would be a surplus.
D)   At a price of $60, there would be a shortage.E) C) and D)
F) A) and B)

Exam 4: Applications of Supply and Demand

The downside to helping farmers through price supports and output restrictions has been that:

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Economists classify health care as:

Correct AnswerverifiedShow Answer

A market price support policy attempts to assist the farm industry by:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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Use the following to answer question(s) : The Market for Health Care -(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers:

Correct AnswerverifiedShow Answer

The equilibrium price is often considered to be "just right" because:

Correct AnswerverifiedD

A market price support policy establishes price ________ the market equilibrium.

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Explain the reasons for the significant escalation in health-care costs over the last several decades.

Correct AnswerAnswered by ExamLex AIThere are several reasons for the signif...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements concerning insurance for health-care services is true?

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Use the following to answer question(s) : Supply and Demand in Agriculture -(Exhibit: Supply and Demand in Agriculture) To help farmers:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

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

Correct AnswerverifiedC

As discussed in the Case in Point on Arab spring and oil markets, after the official start of the recession in the U.S.in 2007, oil prices:

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

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

Using a simple demand and supply model, discuss how insurance affects the health-care market.

Correct AnswerAnswered by ExamLex AIIn a simple demand and supply model, ins...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Use the following to answer question(s) : Third-Party Payers -(Exhibit: Third-Party Payers) Based on the exhibit, and assuming there are no third-party payers:

Correct AnswerverifiedShow Answer

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D

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D

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C

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The Affordable Care Act of 2010, also kn...
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In a simple demand and supply model, ins...
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