Economics Chapter 4 Study Guide

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

B) some renters would be willing to pay a price as high as Rent4 for Q0 units.

In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was:

B) primarily due to technological change and an increase in the number of sellers.

In the 1960s the dominant maker of mainframe computers was:

A) IBM.

(Exhibit: Rent Controls) If rent controls are imposed, they will most likely be set at either _______ or _______.

A) Rent0; Rent1

During the Great Depression:

A) agriculture was hit particularly hard.

Most firms in the United States today are:

A) sole proprietorships and partnerships.

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

B) rising spending for health care.

In 1960, the percentage of total output the United States devoted to health care was about ________ percent.

B) 5

Between 1930 and 1933, the prices received by farmers tended to:

B) decrease.

A price that the government guarantees farmers will receive for a particular crop is a(n):

B) price support.

(Exhibit: Rent Controls) Without rent controls, the equilibrium rent is _______ and the equilibrium quantity is _______.

C) Rent2; Q2

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

C) The average population age increases.

The bulk of the nation's output is produced by:

C) corporations.

Health care is a(n):

C) normal good.

A minimum price set above the equilibrium price is a:

C) price floor.

A firm owned by one individual is called a:

C) sole proprietorship.

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.

C) third-party.

In 2015, the percentage of total output the United States devoted to health care was about ________ percent.

D) 18

In the market for health care:

D) B and C are true. (the effect of third-party payers decreases the price that consumers pay, providers are encouraged to supply a greater quantity than they would without third-party payers.)

A maximum price set below the equilibrium price is a:

D) price ceiling.