Economics Final
Which of the following is a capitial resource
a computer used by a firm
Which of the following is a short-run adjustment
a local bakery hires two additional bakers
Economic cost can best be defined as
a payment that must be made to obtain and retain the services of a resource
Pure monopoly refers to
a single firm producing a product for which there are no close substitutes
Collusion refers to a situation where rival firms decide to
agree with each other to set prices and output
The main determinant of elasticity of supply is the
amount of time the producer has to adjust inputs in response to price change
Microeconomics is examining
an individual consumer, household, or industry
Which of the following statements is true about health care coasts in the U.S.
costs have risen because both the price of health care and the quantity provided have risen
If an employer is prejudiced this illustrates
discrimination
Rapidly rising U.S. health care costs have
done all of these
Employer-provided health insurance began in the U.S. because
during WWII, wage and price controls forced employers to use nonwage forms of compensation to attract workers
The mutual interdependence that characterizes oligopoly arises because
each firm depends on its own pricing strategy and that of its rivals
What set of characteristics best describe the basic features of monopolistic competition
easy entry, many firms, and differentiated products
The ability of Intel to spread product development costs over a larger number of units of output arises from
economies of scale
According to most experts, which of the following factors is most important in causing health care costs to rise
fee-for-service health insurance and cost-increasing technology
The term oligopoly means
few firms producing either a differentiated or homogeneous product
A major difference between social insurance and public assistance is that the
former is regarded as an earned right while the latter is public charity
When a monopoly has an adverse effect upon the economy, the government will
intervene on a case by case basis
A market
is an institution that brings together buyers and sellers
Employer-provided private health insurance
is unique to the U.S. and not typically found in other countries
What is not a characteristic of a good that is inelastic
it has more substitutes
Advertising can impede economic efficiency when it
leads to greater monopoly power
Money is not an economic resource because
money, as such, does not produce anything
Firms that constantly manages price, product and advertising are predominantly in which market model
monopolistic competition
The restaurant, legal assistance, and clothing industries are each illustrations of
monopolistic competition
If the existence of health insurance increases one's incentive to use the health care system more intensively, this is an illustration of
moral hazard problem
The unemployed are disproportionately represented among the uninsured because
most workers obtain health insurance through their employers
Income mobility is the
movement of individuals and households from one income quintile to another over time
Price is less of a factor in consumer purchases and makes product differences a great factor
non price competition
Diseconomies of scale arise primarily because
of the difficulties involved in managing and coordinating a large business enterprise
The scarcity problem
persists because economic wants exceed available productive resources
If discrimination based on gender and race was eliminated, we would expect the
personal distribution of income to become more equal
For economists, the word "utility" means
pleasure or satisfaction
The law of demand states that, other things equal
price and quantity demanded are inversely related
The law of supply states that, other things equal
producers will offer more of a product at high prices than at low prices
The major purpose of Medicare is to
provide health care services to people on Social Security
The major objective of Medicaid is to
provide health care services to those receiving public assistance
The twin problems of the U.S. health care industry are
rapidly rising costs and unequal access to health care
Since 1996 the Temporary Assistance for Needy Families program has
reduced the number of people on welfare by more than one-half
The price elasticity of demand for health care is
relatively inelastic
In 2011, the average income for households in the U.S. was about
$69,821
Approximately how many workers are employed in the U.S. health care industry
17 million
In the U.S. approximately how many doctors are there per 100,000 of population
275
Approximately how many millions of Americans do not have health insurance (prior to Patient Protection and Affordable Care Act)
49
Approximately what percentage of U.S. health care spending is financed by public insurance
50 percent
Assume that in a monopolistically competitive industry, firms are earning economic profit. This situation will
attract other firms to enter the industry, causing the existing firms' profits to shrink
Given the availability of the Medicaid program, why are so many poor people uninsured
because many poor people earn enough that they do not qualify for medicaid
The price elasticity of demand coefficient measures
buyer responsiveness/sensitivity to price changes
Game theory can be used to demonstrate that oligopolistic
can increase their profits through collusion
What does not contributes to income inequality
government transfers
Accounting profits are typically
greater than economic profits because they do not take implicit costs into account
What is not an example of price discrimination
hamburger at Mcdonalds
Employer-provided private health insurance in the U.S. has resulted in
incentives that encourage the overuse of health care
The primary purpose of Social Security is to provide
income for retired and disabled workers
What helps explain growing income inequality in the U.S. in recent years
increased demand for highly skilled workers
Advertising can enhance economic efficiency when it
increases consumer awareness of substitute products
Which of the following persons is most likely to be insured for health care
skilled worker employed by a large multinational corporation
The U.S. income-maintenance program consists of two kinds of programs. They are
social insurance and public assistance, or "welfare"
Economists may best be defined as the
social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity
When economists say that health care services are over-consumed, they mean that
some resources now used in the health care industry could produce alternative goods and services that society values more highly
Economists distinguish among the market period, the short run, and the long run by noting that
supply is most elastic in the long run, and least elastic in the market period
Which of the following is a labor resource
teacher
Some manufacturers offer coupons because
the goods have a lot of substitutes and a higher elasticity of demand
The demand for a product is likely to be more elastic
the greater the amount of time over which buyers adjust to a price change
What measurement issues make interpretation of U.S. poverty rates difficult
the high cost of living in urban areas tends to result in the understatement of poverty
According to The Economist magazine, growing income inequality is less of a concern because
the poor have increasingly better access to goods services once only available to the rich
Which of the following generalizations is not correct
the price elasticity of demand is greater for necessities than it is for luxuries
Advanced technology and capital goods are encouraged because
they promote fast, more efficient production of goods and services
When the U.S. is described as having a dual system of health care, this means that
those Americans with good insurance or substantial wealth receive world-class health care, while those without insurance receive no or low-quality health care
In the U.S. both taxes and
transfers decrease income inequaility
Which of the following represents a long-run adjustment
unable to meet foreign competition, a U.S. watch manufacturer sells one of its branch plants
Which of the following constitutes an implicit cost to the Johnston Manufacturing Company
use of building Johnston owns instead of renting it to another entity to generate income
Economic systems differ according to which two main characteristics
who owns the factors of production, and the methods used to coordinate economic activity