Academic Decathlon - Economics (2020)

This measure weighs the cost of goods and services purchased by a typical consumer.

Consumer Price Index (CPI)

This organization regulates phase III drug trials.

Food and Drug Administration

These three western European countries use the Bismarck model.

France, Switzerland, the Netherlands

This equation relates GDP and categories of spending.

GDP = C + I + G + NX

This measure of inflation best adjusts to changing prices over time.

GDP deflator

This measure relates real and nominal GDP.

GDP deflator

These two Nobel Prize-winning economists studied adverse selection in health insurance.

George Akerlof, Joseph Stiglitz

This event constitutes the United States' deepest recession.

Great Depression

This period in the United States' economy dates from August 1929.

Great Depression

This period of United States economic decline dated from 1929.

Great Depression

This model illustrates the demand for health.

Grossman

This office commissioned Simon Kuznets to study national output in 1932.

U.S. Department of Commerce

This equation defines the velocity of money.

V = (P x Y)/M

This expression is known as the quantity equation.

V = (P x Y)/M

This expression relates the velocity of money and money supply to nominal GDP.

V x M = P x Y

A recession typically lasts for this range of time.

a few months to more than a year

The body releases this hormone in response to stress.

adrenaline

Small businesses turn to this intermediary to borrow funds.

bank

This group holds all the risk in bank deposits.

bank owners

This term refers to a rush of withdrawals from the bank.

bank run

These two organizations act as the major economic intermediaries.

banks and mutual funds

Innovation creates this kind of obstacle to market competition.

barriers to entry

Milton Friedman argues this factor drives high incomes for doctors.

barriers to entry

Monopolistic competition lacks this property of a monopoly.

barriers to entry

This primary market factor limits hospital competition.

barriers to entry

Real GDP calculates prices using this reference.

base year

The first year of medical school covers this area.

basic science

These two primary factors lowered labor force participation in 20th century United States.

early retirement, longer education

This type of health investment has the highest return.

early-life

Producers will be content with zero economic profits on this condition.

earning opportunity wage

These three factors can influence the price elasticity of supply.

ease of entry and exit, scarcity, and time horizon

This type of cost includes both opportunity costs and accounting costs.

economic cost

Directing resources to capital formation results in this economic effect.

economic growth

Inflation inhibits this process by reducing the demand for investment.

economic growth

The opportunity to earn this profit drives additional producers to join the market.

economic profit

This type of profit equals the difference between producer revenue and total production costs.

economic profit

Additional producers will enter the market if this possibility exists.

economic profits

Pharmaceutical advances from 1986 to 2001 had this effect on American life expectancy.

extended by one week/year

Ronald Coase proposed that private markets can negotiate solutions to this problem.

externalities

This phenomenon results from the existence of rival, non-private goods.

externalities

This outcome arises when an economic activity benefits or harms unrelated third parties.

externality

This type of market failure occurs when a person's actions affect someone else's without compensation.

externality

Households receive income in return for providing this necessity.

factors of production

This category includes labor, capital, and land.

factors of production

David Cutler and Adriana Lleras-Muney find this increase in life expectancy per year of education.

five months

This term refers to costs that cannot be changed in the short run.

fixed cost

This type of cost does not depend on quantity produced.

fixed cost

If two curves pass through the same point, the curve of this shape has a higher elasticity.

flatter

This type of good appears in the CPI but not in the GDP deflator.

goods produced abroad

This actor receives taxes.

government

This institution can step in when parties fail to resolve externalities.

government

This institution enforces the rule of law in a market economy.

government

The "G" in the GDP equation stands for this term.

government expenditures

This term refers to government taxes minus expenditures.

government saving

Copyright laws create this type of monopoly.

government-created

Higher interest rates allow for this return when people choose to invest over the long term.

greater rewards

Kenneth Arrow argued that decisions about healthcare have this unique property.

greater uncertainty

This common aggregate measure calculates economic performance.

gross domestic product

This term refers to the total output of final goods and services in a country in a time period.

gross domestic product

This value aggregates the value of all goods a country produces.

gross domestic product

These three primary indicators describe aggregate economic performance.

gross domestic product, cost of living, unemployment

Reduced investment in the economy slows this rate.

growth of living standards

A lower price level as a result of increased wealth leads to this change in real GDP.

higher level of real GDP

Shareholders earn this level of return compared to bondholders.

higher return

Shareholders face this level of risk compared to bondholders.

higher risk

Externalities originate from goods with these two characteristics.

highly rival, non-private

This economic phenomenon primarily hurts people who hold wealth as paper money.

inflation

This phenomenon decreases the value of physical money.

inflation

This phenomenon introduces price distortions.

inflation

This phenomenon occurs when all prices rise together.

inflation

This term refers to a difference in access to information.

information asymmetry

This failure of the economy to respond immediately to policies creates a challenge for economic policymakers.

information time lag

Labor costs, real estate costs, and utilities constitute this type of economic cost.

input costs

This economic term refers to rules that structure interaction.

institutions

This group oversees medical residents in the United States.

attending physicians

This factor explains most variation in GDP per capita.

average labor productivity

This term equals total output divided by the total number of workers.

average labor productivity

Adverse selection in healthcare has this effect.

insurance of high-risk individuals at lower prices

Bonds include this fee on top of the principal.

interest

People who deposit money in the bank earn this benefit.

interest

Higher risk increases this aspect of a bond.

interest rate

In the financial market, increasing this rate reduces the quantity of funds demanded.

interest rate

The price of a bond changes according to this rate.

interest rate

This rate changes to maintain equilibrium in the financial market for savings.

interest rate

This effect refers to the tie between lower price levels, investment, and the downward sloping AD curve.

interest rate effects

This third party acts as a link between savers and investors.

intermediary

Steel used to produce a car counts as this type of good in GDP.

intermediate good

The value of this type of good does not count towards GDP.

intermediate good

This type of good does not count in GDP, to account for vertical integration.

intermediate good

This type of good is consumed in the production of a final good.

intermediate good

This type of social cost can be internalized and thus reduced.

internalization

Domestic savings do not equal domestic investments in an open economy due to this phenomenon.

international borrowing

Macroeconomics deals with these two primary issues.

long-run growth, short-run fluctuations

Poor health creates a higher opportunity cost for this level of income.

low

Moral hazard leads to the consumption of this kind of good.

low marginal utility

Natural monopolies arise when one firm has this advantage over multiple firms.

lower costs

A marginal seller will leave the market if this change occurs.

lower price

A decline in a good's price causes this change in the market for its substitute.

lower quantity demanded

This group values marginal income the most.

lower-income people

Increasing capital stock in the future involves this trade-off.

lowered current consumption

Sellers have an incentive to perform this action to reduce excess supply.

lowering prices

This branch of economics studies standards of living and price levels.

macroeconomics

This branch of economics studies unemployment and inflation.

macroeconomics

This field studies fluctuations between expansions and recessions.

macroeconomics

Japan's 1922 law provided health insurance to these two industries.

manufacturing, mining

Dividing the increase in total costs by the increase in the quantity produced equals this value.

marginal cost

Goods with low rivalry have a near-zero quantity for this supply-side factor.

marginal cost

This term refers to the increase of cost that occurs when producing an additional unit of output.

marginal cost

This curve equals the market demand curve when a monopoly uses price discrimination.

marginal revenue

This term refers to revenue gained from one additional product.

marginal revenue

Medicine constitutes this kind of health input.

market

The more broadly this institution is defined, the lower the elasticity of demand for a good.

market

This term refers to a gathering of buyers and sellers of a good.

market

This term refers to the group of goods and services measured in CPI.

market basket

Oligopolistic firms consider this group's choices when deciding how much to produce.

market competitors

The demands of individual consumers sum to this factor.

market demand

This term describes situations when a competitive market fails to produce a desirable outcome.

market failure

Firms that face downward sloping demand curves possess this kind of power.

market power

Innovation helps firms establish this advantage.

market power

This term describes firms that can choose their own market prices.

market power

Participants in a perfectly competitive market have full information on this factor.

market price

This curve sums the quantities supplied at each price by all producers.

market supply curve

Inputs for health fall into these two categories.

market, non-market

The risk of a bond increases with this characteristic.

maturity

Hospitals account for this share of healthcare expenditure in the United States.

one-third

This share of Medicare enrollees received Part C insurance.

one-third

United States medical schools have had this lowest acceptance rate.

one-third

The Federal Reserve adjusts the money supply primarily though this action.

open market operations

Economic costs equal accounting costs plus this type of cost.

opportunity cost

The slope of a production possibility frontier reflects this economic exchange.

opportunity cost

Competitive market producers receive this type of profit.

opportunity wage

This specialty earns an average of $500,000 per year in the United States.

orthopedic surgeons

A person who has not worked in the past week and did not seek work during the past four weeks falls under this category.

out of the labor force

This term describes healthcare providers a plan does not cover.

out-of-network

Part B Medicare funds these two expenses.

outpatient care, some inpatient drugs

RAND HIE found a downward demand slope for these two types of care.

outpatient, inpatient

This term refers to the difference between actual and potential economic output.

output gap

This value measures the average production per person in an economy.

output per capita

GDP excludes goods exchanged in this manner.

outside a market

Increasing the number of producers shifts the market supply curve in this direction.

outward

The Affordable Care Act requires firms of this size to offer health insurance.

over 50 employees

The Boskin Commission concluded that the CPI had this level of distortion.

overstating by 1.3%

These three primary factors result in barriers to market entry.

ownership of a key resource, government, and natural monopolies

This barrier to entry enables monopolies in the electricity market.

ownership of key resource

Inflation taxes those who hold this form of wealth.

paper money

The Grossman model predicts this group invest more in health.

those who benefit most from health

The FDA provides exclusivity for drugs treating this population.

those with rare diseases

Medical school requires this length of time in the United States.

three years

RAND HIE relates this factor to frequency of outpatient visits.

patient cost-sharing

Phase II drug trials use this type of subject.

patients with the condition

This tax funds Part A Medicare.

payroll

This specialty earns an average of $212,000 per year in the United States.

pediatrician

The Latin phrase "per capita" has this translation.

per head

Monopolistic competition has qualities of these two market types.

perfect competition and monopoly

This type of demand curve is always horizontal.

perfectly elastic

This type of supply curve indicates that supply is infinitely responsive to price.

perfectly elastic

This type of demand indicates that demand is infinitely responsive to price.

perfectly elastic demand

This supply curve is always horizontal regardless of changing supply.

perfectly elastic supply curve

This type of demand curve is always vertical.

perfectly inelastic

This type of demand indicates that demand is totally unresponsive to price.

perfectly inelastic demand

This demand curve is always vertical regardless of changing price.

perfectly inelastic demand curve

This supply curve is always vertical regardless of changing price.

perfectly inelastic supply curve

This determinant of productivity includes equipment and factories.

physical capital

Average labor productivity depends on these five primary factors.

physical capital, human capital, resources, knowledge, political environment

Governments use force in these four areas.

policing, military service, national security, taxation

The existence of a patent system falls under this determinant of productivity.

political and legal environment

This determinant of productivity refers to barriers imposed by governmental bodies.

political and legal environment

The long tenure for Fed board members prevents this issue that affects short-term government appointments.

political pressures

Medicaid serves these two groups.

poor, disabled

These two primary factors explain rising production levels in the United States in the last century.

population growth, higher productivity

This expansion in buyers results in a rising level of production.

population increase

This term refers to the creation of projects to steer money to a politician's community.

pork barrel politics

This type of capital flow occurs when an individual buys shares in a foreign corporation.

portfolio investment

This hypothesis argues health depends on early childhood experiences.

thrifty phenotype hypothesis

This type of capital flows includes purchase of United States government bonds by the Australian government.

portfolio investment

The Grossman model predicts this correlation between education levels and health.

positive

The short-run aggregate supply curve has this kind of slope.

positive

Externalities belong to one of these two categories.

positive and negative

Goods with this type of externality are underproduced.

positive externality

This term refers to the quantity of goods and services the economy can produce at normal productivity.

potential output

The actual level of short-run GDP at any time sums these two parts.

potential output + output gap

This term refers to a payment for enrolment in health insurance.

premium

Health insurance cost-sharing takes these three main forms.

premiums, copayment, deductible

Part D Medicare covers this type of expenditure.

prescription drugs

The Beveridge model may require citizens to pay for these three healthcare costs.

prescriptions, eye care, dentistry

The Federal Reserve selects board members through these two steps.

presidential appointment, Senate confirmation

The short-run aggregate supply curve slopes upwards due to the relationship between these two factors.

price adjustment and unanticipated sales

The CPI measures inflation as a proxy for the relationship between these two factors.

price changes, well-being

Firms that have a downward sloping demand curve have this type of market role.

price chooser

This policy intervention legislates a minimum or maximum price.

price control

Companies use this strategy in separating customers into differently-treated groups.

price discrimination

This strategy occurs when cable providers offer different channel packages to customers at various prices.

price discrimination

This strategy occurs when museums offer discounted tickets for children.

price discrimination

This measurement reflects the ease with which suppliers can alter quantity supplied.

price elasticity of supply

A long-term increase in the supply of money leads to a proportional increase in this index.

price level

The supply of money is tied to this index.

price level

The Beveridge model eschews this healthcare practice.

price rationing

This term describes firms' role in relation to prices in a perfectly competitive market.

price taker

This term refers to the deviation between equilibrium price and quantity caused by a tax.

price wedge

Real GDP separates out these two forms of changes otherwise conflated in nominal GDP.

prices, quantity produced

This term refers to the repaid original amount on a bond.

principal

This type of good has high excludability and rivalry.

private goods

This term refers to the leftover money a household has after consumption and taxes are deducted.

private savings

This healthcare statistic in the United States peaked in 1974.

probability of hospitalization

Rent control decreases this type of surplus in the short run.

producer surplus

This surplus decreases in importing countries as domestic prices exceed the world price.

producer surplus

This group of market participants benefits when countries export goods.

producers

Monopolistic competition has this qualitative consumer benefit.

product choice

This diagram shows all the output combinations possible for an economy.

production possibilities frontier

This curve represents the trade-off between producing two different goods.

production possibility frontier

GDP refers to these three equal measures.

production, expenditures, income

This situation occurs when output falls below potential output.

productive resources underutilized

Entrepreneurs attempt one of these three types of innovations.

products, markets, production methods

This term refers to the difference between a firm's total revenue and total costs.

profits

Businesses with a desire to borrow more money at every interest rate have this effect on the demand curve for funds.

rightward shift

New technology that improves productivity has this effect on the demand curve for funds.

rightward shift

Technological improvement causes this shift in the LRAS curve.

rightwards

This term describes a preference for greater certainty in outcome.

risk aversion

This good has lower availability for others once consumed.

rival good

American medical students undergo this kind of ward training.

rotations

This government state forces investments to decline in an economy.

running a budget deficit

This expression equals national savings in an open economy.

I + NCO

This branch of economics focuses on individual behavior and markets.

microeconomics

Market equilibrium most often occurs naturally in this type of market.

perfectly competitive

This type of market has homogeneous goods, many actors, and full information.

perfectly competitive

This type of analysis explains phenomena and makes fact-based predictions.

positive economics

This type of economic analysis does not require opinions or judgments.

positive economics

The law of demand relates quantity demanded to this factor.

price

This quantity is plotted on the y-axis of the demand curve.

price

This quantity is plotted on the y-axis of the supply curve.

price

Goods are described as unit elastic if percentage changes in these two values are equal.

price and demand or supply

Actions of buyers and sellers determine these two market characteristics.

price and quantity sold

The law of supply relates these two factors.

price and quantity supplied

The supply curve relates these two economic factors.

price and quantity supplied

This term refers to how much quantity demanded responds to a change in price.

price elasticity of demand

This main factor determines the quantity supplied of a good.

price received

The law of demand relates these two factors.

price, quantity demanded

This quantity is the difference between the seller's opportunity cost and market price.

producer surplus

The DRG system sets fees based on this factor.

the patient's diagnosis

This word in GDP indicates the geographical range it covers.

"domestic"

This equation represents the money multiplier.

$1/R

African-Americans in the United States had this unemployment rate in August 2009.

15.1%

The United States had this labor force in August 2009.

154,577,000

Medicaid accounts for this share of state budgets.

20%

The United States had this adult population in August 2009.

236,086,000

The United States' CPI fell this percent between 1929 and 1933.

25%

The United States' real GDP fell by this percentage in the Great Depression.

25%

This group had 2.32 outpatient episodes per year in RAND HIE.

25% copayment

Teenagers in the United States had this unemployment rate in August 2009.

25.5%

This number of Americans lacked health insurance in 2017.

27 million

This number of United States residents lacks health insurance.

27 million

Americans who did not graduate high school have mortality rates this factor higher than those who attended college.

3.1

This number of states took part in Medicaid under the ACA in 2018.

34

In RAND HIE, the 0% and 95% copayment groups had this difference in outpatient episodes.

36% fewer for 95% copayment

The United States' Great Depression lasted for this number of months.

43

This number of Americans lacked health insurance in 2013.

44 million

Private spending accounted for this share of healthcare spending in the United States in 2016.

47%

Medicare insures this number of people.

50 million

United States medical schools have this average acceptance rate.

50%

This group had 2.11 outpatient episodes per year in RAND HIE.

50% copayment

The government accounted for this percentage of healthcare spending in the United States in 2016.

53%

The United States' M2 had this value in December 2007.

6,579.1 billion

Americans had this average length of hospital stay in 2014.

6.1 days

This percentage of United States residents have private insurance.

60%

The United States surveys approximately this number of households to measure monthly unemployment.

60,000 households

A study estimated that lack of patent protection would have this effect on British pharmaceutical research.

64% lower

The United States had this labor force participation rate in August 2009.

66%

In the United States, the cost of a fixed basket of consumption of goods has increased by this factor in the past half-century.

7

This number of governors sit on the Federal Reserve board.

7

Adult women in the United States had this unemployment rate in August 2009.

7.6%

Medicaid served this number of people in 2017.

74 million

This quantity of United States currency was in circulation in December 2007.

758.7 billion

The lowest-income American men had this life expectancy in 2010.

76

White Americans in the United States had this unemployment rate in August 2009.

8.9%

Medical residents in the United States have this average workweek.

80 hours

The United States had this number of adults not in the labor force in August 2009.

81,509,000

The highest-income American men had this life expectancy in 2010.

89

Insurance pays for this percentage of healthcare expenditures in the United States.

89%

The United States had this unemployment rate in August 2009.

9.7%

This group had 1.9 outpatient episodes per year in RAND HIE.

95% copayment

The United States uses this main inflation measure.

Consumer Price Index (CPI)

This government body reports the Consumer Price Index.

U.S. Bureau of Labor Statistics

This category made up most of the United States' M1 in December 2007.

currency

This component of the money stock includes paper bills and coins.

currency

This medium of exchange is an economy's most liquid asset.

currency

M1 consists of these four categories of assets.

currency, nonbank travelers checks, demand deposits, other checkable deposits

The GDP deflator uses this price index, unlike the CPI.

current production

The product of these two terms equals real GDP.

current year production, base year prices

This type of unemployment occurs during recessions.

cyclical unemployment

This term refers to a bond's date of repayment.

date of maturity

This term refers to the reduction in social welfare due to a tax.

deadweight loss

This term refers to the sale of bonds.

debt finance

This term describes the idea that those with less income value an additional dollar more.

declining marginal utility of income

A negative aggregate demand shock has this effect on the price level.

decrease

A negative aggregate supply shock has this effect on output.

decrease

This effect on net capital outflows occurs when a foreign company purchases domestic assets.

decrease outflows

Moving down the demand curve, elasticity changes in this way.

decreases

This term refers to the minimum spending needed for insurance reimbursement.

deductible

This event occurs when a borrower cannot fulfil their repayment.

default

Decreasing the money supply in an economy results in this macroeconomic phenomenon.

deflation

This curve shifts upward to reflect the social value of a positive externality.

demand

This term refers to a severe recession.

depression

When the market supply curve shifts outward, this factor falls.

equilibrium price

Multiplying these two numbers equals total revenue.

equilibrium price and quantity

This term refers to the sale of shares of stock.

equity finance

The Federal Open Market Committee meets with this frequency in Washington, D.C.

every six weeks

This term refers to the ability to control who consumes a good.

excludability

Unpaid housework exemplifies this limitation of GDP.

exclusion of under-the-table goods

The ACA made these two main changes.

expanding Medicaid, creating insurance exchanges

A rise in the rate of inflation typically occurs in this part of the business cycle.

expansion

Economic activity rises substantially in this type of period.

expansion

Free trade has this effect on the overall size of the economy.

expansion

This period of economic activity rises from a trough to a peak.

expansion

This kind of fiscal policy involves increased government spending.

expansionary

This GDP value must equal the value of goods produced in a country.

expenditures within a country

This term also refers to accounting costs.

explicit costs

This type of country can supply a good at a price below the world price.

exporter

This expression equals net exports.

exports - imports

This condition constitutes a trade surplus.

exports exceeding imports

The GDP deflator is an alternative measure of this phenomenon.

inflation

This economic phenomenon causes confusion about goods' true value.

inflation

This economic phenomenon lessens the value of money over time.

inflation

This term describes the tendency to take risks when one is insured.

moral hazard

Information asymmetry creates these two problems.

moral hazard, adverse selection

RAND HIE found this factor did not vary between copayment plans.

mortality

This disease is Ghana's primary cause of death.

mosquito

Women's entrance into the paid labor force had this effect on GDP.

no real increase

In economics, "short-run" typically refers to this range of time.

one to three years

An increase in the money supply shifts the AD curve in this direction.

right

When the price of a good rises, firms perform this action.

supply a greater quantity

Microeconomics studies this primary interaction.

supply and demand

This amount is added to GDP when a firm has $200 worth of a good but only earns $100 from selling it to consumers.

$100

The United States spent this amount on hospital-related costs in 2016.

$11 trillion

This amount is added to GDP if a firm uses $100 of raw materials to make a final product from which it earns $200.

$200

In 2016, Americans spent this amount on healthcare.

$3.3 trillion

The United States spent this amount on pharmaceuticals in 2016.

$330 billion

The United States spent this amount on out-of-pocket medical care in 2016.

$352 billion

Medicaid has this average hospital copayment.

$50 to $100

Medicaid had this total expenditure in 2017.

$595 billion

A bank with $180 in liabilities and a 20% reserve ratio can lend this quantity.

$64

The United States spent this amount on doctors' services in 2016.

$665 billion

Medicare payments account for this amount of healthcare expenses.

$702 billion

Each drug brought to market cost this amount in 2000.

$883.6 million

Each drug brought to market cost this amount in 1970.

$92 million

This expression gives the price elasticity of demand.

% change in QD/ % change in price

This expression equals the price elasticity of supply.

% change in quantity supplied / % change in price

Rational decision-makers have this aim in economic theory.

maximizing benefit

This percentage of healthcare spending in the United States went to doctors in 2016.

20%

The product of these two terms equals nominal GDP.

(GDP deflator/100) x (real GDP)

This definition of GDP per capita relates GDP per worker and employment.

(GDP/N) × (N/POP)

Sugar in the United States has this price level relative to world prices.

200%

This group had 2.99 outpatient episodes per year in RAND HIE.

0% copayment

The commission earned from selling a 1990-built house in 2015 counts toward this year's GDP.

2015

The United States' M1 had this value in December 2007.

1,366.6 billion

Medicare consumers this share of the federal budget.

15%

RAND HIE found this number of outpatient episodes per year in the 95% copayment group.

1.9

If a company issued 1,000 stock shares, each share would have this value.

1/1,000 of the company's worth

This equation refers to the amount of goods that can be bought with $1.

1/P

Pharmaceuticals accounted for this share of United States health expenditures in 2016.

10%

Adult men in the United States had this unemployment rate in August 2009.

10.1%

This expression equals the CPI in a given year.

100 * (bundle cost in year) / (bundle cost in base year)

The product of these two terms equals the GDP deflator.

100 x (nominal GDP/real GDP)

Americans had this average length of hospital stay in 1975.

11.5 days

The Federal Reserve consists of this number of regional banks.

12

Hispanics in the United States had this unemployment rate in August 2009.

13%

The ACA subsidized insurance for this range of incomes relative to the federal poverty line.

133 to 400%

This number of United States workers were employed in August 2009.

139,649,000

A Federal Reserve board member serves a term of this length.

14 years

The United States had this number of unemployed workers in August 2009.

14,928,000

The United States' CPI fell this percent between 1920 and 1922.

16%

Healthcare constituted this percentage of American GDP in 2016.

18%

This number of Americans had Part C Medicare insurance in 2017.

19 million

American inflation rates reached double digits in this decade of the twentieth century.

1970s

RAND HIE had this sample size.

2,000 families

RAND HIE found this number of outpatient episodes per year in the 50% copayment group.

2.11

RAND HIE found this number of outpatient episodes per year in the 25% copayment group.

2.32

The Medicare Part A payroll tax deducts this range of levels income.

2.9 to 3.8%

RAND HIE found this number of outpatient episodes per year in the 0% copayment group.

2.99

British dukes' children had a life expectancy this number of years higher than average in 1900.

20

Pharmaceutical patents last this length of time.

20 years

This symbol represents the aggregate demand curve.

AD

This symbol represents the short-run aggregate supply curve.

ASSR

The ACA introduced this mechanism abbreviated as ACO.

Accountable Care Organization

These two economists conducted the Oregon Medicaid Experiment.

Amy Finkelstein and Katherine Baicker

This health insurance model entails fully public healthcare.

Beveridge

This health insurance model requires zero premiums.

Beveridge

These three main systems characterize national healthcare.

Beveridge, Bismarck, American

Japan adopted this model of health provision.

Bismarck

This 1996 panel reviewed the CPI's calculation.

Boskin Commission

This United States agency measures the unemployment rate.

Bureau of Labor Statistics

This letter represents the currency the public chooses to hold.

C

These six major countries adopted the Beveridge model.

Canada, Australia, New Zealand, Sweden, Norway, Denmark

These two major countries have universal health insurance.

Canada, United Kingdom

The Bureau of Labor Statistics uses this survey to calculate CPI.

Consumer Expenditure Survey

CRNA refers to this specialty.

CertifiedRegistered Nurse Anesthetist

This statesman inspired the Bismarck model.

Chancellor Otto von Bismarck

This principle states that private markets can negotiate efficient solutions to externalities.

Coase theorem

This theorem states that initial distribution of rights does not affect the ability to resolve externalities.

Coase theorem

This major study supports the thrifty phenotype hypothesis.

Dutch Famine Study

This committee of the Federal Reserve manages the money supply.

Federal Open Market Committee (FOMC)

This body in the Federal Reserve resides in Washington, D.C.

Federal Reserve Board

This central bank governs the United States economy.

Federal Reserve System

This country adopted the Bismarck model universally in 1958.

Japan

This country passed a Bismarck-style health insurance law in 1922.

Japan

This economist coined the phrase "creative destruction."

Joseph Schumpeter

This economist developed the field of health economics.

Kenneth Arrow

In economics, this letter represents the money supply.

M

This equation represents the size of a banks' reserves.

M - C

Demand deposits belong to this category of money.

M1

Nonbank travelers checks belong to this category of money stock.

M1

These two categories form the most widely used measures of money stock.

M1 and M2

Retail money funds belong to this category of money stock.

M2

Savings deposits belong to this category of money stock.

M2

Small denomination time deposits belong to this category of money stock.

M2

Firms increase supply until this point.

MR = MC

Firms produce at this point in monopolistic competition.

MR = MC

Successful cartels face this relationship between marginal revenue and cost.

MR > MC

This cut in health funding underpinned the ACA.

Medicare cuts

The Tax Equity and Fiscal Responsibility Act affected this type of hospital.

Medicare participants

Accountable Care Organizations serve this group.

Medicare recipients

This person headed a 1996 review of the United States' CPI calculation.

Michael Boskin

This Japanese company purchased the Rockefeller Center in 1989.

Mitsubishi

This American organization defines recessions and expansions.

National Bureau of Economic Research

This economic organization's name has the acronym NBER.

National Bureau of Economic Research

This organization dates United States recessions and expansions.

National Bureau of Economic Research

This state's regional bank has a permanent seat on the Federal Open Market Committee.

New York

Simon Kuznets received this major award in 1971 for his work on national output

Nobel Prize in Economic Science

This organization's oil embargo caused an aggregate supply shock in 1973.

OPEC

Amy Finkelstein and Katherine Baicker oversaw this study.

Oregon Medicaid Experiment

This cartel dominates the oil market.

Organization of Petroleum Exporting Countries

The price level is represented by this letter.

P

Price and marginal cost have this relation in monopolistic competition.

P > MC

This expression gives nominal GDP.

P x Y

V x M equals this expression in the velocity of money.

P x Y

Any combination of outputs along the PPF in a closed economy fulfils this condition.

Pareto efficiency

This portion of Medicare can substitute for Parts A and B.

Part C

The ACA has this full name.

Patient Protection and Affordable Care Act

This act is colloquially known as Obamacare.

Patient Protection and Affordable Care Act

In economics, this letter represents the reserve ratio.

R

The Oregon Medicaid Experiment follows up on this study.

RAND HIE

RAND HIE has this full name.

RAND Health Insurance Experiment

In a closed economy, this identity derived from the GDP equation equals national savings.

S = (Y - C - G)

This 1890 federal law increased competition and restricted monopolies.

Sherman Anti-Trust Act

This American law requires review of large mergers and acquisitions.

Sherman Anti-Trust Act

This economist developed a national output measure for the Department of Commerce.

Simon Kuznets

This British official developed a precursor of GDP.

Sir William Petty

This American retirement payment is indexed to the CPI.

Social Security benefits

This expression represents government savings.

T - G

TEFRA refers to this act.

Tax Equity and Fiscal Responsibility Act

This 1983 United States law affected hospital reimbursements.

Tax Equity and Fiscal Responsibility Act

This nickname refers to the Federal Reserve System.

The "Fed"

John Maynard Keynes published this book in 1936.

The General Theory of Employment, Interest, and Money

This economist developed the Beveridge model.

William Beveridge

The Dutch Famine Study examined individuals in this period.

World War II

This expression represents private savings.

Y - C - T

This expression represents the output gap in an economy.

Y - Y*

This equation represents income and expenditures in an open economy.

Y = C + I + G + NX

This identity of GDP shows the equality of income and expenditures.

Y = C + I + G + NX

This symbol denotes potential output in an economy.

Y*

The 12 regional banks under the Federal Reserve serve this type of role.

a banker's bank

Economies with this advantage can produce a good with fewer inputs than their competitors.

absolute advantage

A mutual fund provides this advantage to new savers.

access to professional knowledge

This type of cost includes actual monetary expenditures.

accounting cost

The natural rate of unemployment occurs in this economic situation.

actual = potential output

"Thrifty" genes code for this kind of behavior.

adaptive to deprivation

George Akerlof and Joseph Stiglitz studied this insurance phenomenon.

adverse selection

This phenomenon occurs when someone with a complex illness buys insurance at a standard rate.

adverse selection

Short-run fluctuations in the economy result from the interaction of these three forces in the Keynesian model.

aggregate demand, short-run, long-run aggregate supply

This term describes the effects of chronic stress on the body.

allostatic load

This hypothesis links health to environmental stress.

allostatic load hypothesis

This value in the CPI expresses the cost of the market basket in a month.

an index relative to the base-year cost

CRNAs substitute for this healthcare provider.

anesthesiologist

New drugs first undergo this type of trial.

animal

The GDP deflator differs from the CPI in this manner when market shifts occur.

being less sensitive

These two factors have moved hospital-based care to outpatient settings.

better technology, altered insurance compensation

This certificate of indebtedness includes a date of maturity and interest rate.

bond

This financial certificate acts as an IOU.

bond

Major companies use this method to raise investment funds from the public.

bond sale

A firm in default must first pay this type of saver.

bondholder

A higher discount rate discourages banks from this action.

borrowing

This action transfers funds from financial markets to the market for goods and services.

borrowing

Businesses continue this action if their returns exceed their investments.

borrowing funds

The government runs in this state if "T - G" is a negative number.

budget deficit

The government runs in this state if "T - G" is a positive number.

budget surplus

Economies experience this alternation of expansions and recessions.

business cycle

This term refers to the alternation of expansions and recessions.

business cycle

This kind of investment includes purchases of factories and equipment.

business fixed

Investment has these three subcategories.

business fixed, residential fixed, inventories

Economists classify health as this kind of good.

capital

This type of good is used to produce other goods without being exhausted.

capital good

This type of long-lived good is used to produce other goods.

capital good

Machines and buildings count as this class of goods in GDP.

capital goods

This agreement between firms in an oligopoly allows them to increase profits.

cartel

Rent controls create this type of price restriction.

ceiling

The Federal Reserve refers to this institution of the United States.

central bank

This institution oversees the banking system and controls the money supply.

central bank

These two main factors cause shifts in the short-run aggregate supply curve.

changes in expected price level, aggregate supply shocks

This type of fiscal policy can influence household consumption.

changes in taxation

Banks provide this important service for consumers.

checking accounts

The FDA has this requirement of generic drugs.

chemically identical with patent drug

This diagram tracks monetary flows between economic actors.

circular flow model

The second stage of medical school focuses on these two areas.

clinical skills, patient management

Satellite radio constitutes this type of good.

collective

This type of good has low rivalry but high excludability.

collective

This type of shared good is most easily privatized.

collective

Websites constitute this type of good.

collective

North America has this unique prerequisite for medical school.

college degree

Money can be divided into these two categories.

commodity and fiat

Cigarettes act as this type of money for war prisoners.

commodity money

This medium of exchange involves items with intrinsic value.

commodity money

Streets constitute this type of resource.

common

The environment constitutes this type of resource.

common

Property rights can be established to regulate this type of non-private good.

common resources

The tragedy of the commons occurs with this type of good.

common resources

Economies with this advantage can produce a good at a lower opportunity cost than their competitors.

comparative advantage

Economies with this type of advantage for different goods can benefit by specializing.

comparative advantage

This factor in the financial market returns the real interest rate to equilibrium.

competition

The quantity monopolies supply through price discrimination equals the quantity supplied in this market type.

competitive market

Financial market loans fund purchases of these two types of goods.

consumer durable, capital

Automobiles and furniture constitute this type of consumption.

consumer durables

Consumption expenditures have these three subcategories.

consumer durables, nondurables, and services

This term refers to goods used up quickly, such as food.

consumer nondurables

Monopolies cause a transfer of this quantity to producers.

consumer surplus

This surplus increases in importing countries as domestic prices exceed the world price.

consumer surplus

This group of market participants suffers when countries export goods.

consumers

These two parties share the cost of a tax.

consumers and suppliers

Household purchases count as this kind of spending.

consumption expenditures

The "C" in the GDP equation stands for this term.

consumption expenditures

Health contributes to these two components of GDP.

consumption, investment

This term refers to voluntary agreements between parties who anticipate benefit.

contract

This term refers to the share of health costs borne by consumers.

copayment rate

RAND HIE used health insurance plans that varied in this regard.

copayment rates

This term refers to out-of-pocket payments.

copayments

This aggregate indicates economic performance based on how much consumers pay for necessities.

cost of living

Joseph Schumpeter coined this phrase to describe entrepreneurs' influence.

creative destruction

This common medium of transaction defers payment.

credit card

This phenomenon occurs when government borrowing drives up the interest rate.

crowding out

The Dutch Famine Study found differences in these three health outcomes.

diabetes, HDL levels, obstructive airway disease

DRG refers to this phrase relating to health insurance.

diagnostic-related group

Health investment has this kind of return.

diminishing marginal return

A firm faces an upward sloping supply curve if this principle holds true.

diminishing returns to scale

This principle states that each additional input results in a smaller increase in quantity produced.

diminishing returns to scale

The Federal Reserve charges this rate on loans to banks.

discount rate

The Federal Reserve uses this money supply tool relating to interest rates.

discount rate management

This tax-related issue cannot completely be solved through legislation.

distribution of tax burden

Mutual funds provide this advantage for savers with small amounts of money.

diversification of assets

Shareholders in a company earn this regular payment.

dividends

Shareholders receive these two benefits.

dividends and increased stock value

In an open economy, domestic savings need not equal this component of GDP.

domestic investments

A doubling of all prices has this long-run effect.

doubling of demand for money

Firms in imperfectly competitive markets face a demand curve with this slope.

downward

Firms in imperfectly competitive markets face this shape of demand curve.

downward sloping

Firms in monopolistic competition face this type of demand curve.

downward-sloping

The price level responds to a negative aggregate supply shock in this manner.

drops until Y = Y*

This hypothesis argues that education improves health behavior.

efficient producer hypothesis

This hypothesis suggests educated individuals are likelier to treatment regimes.

efficient producer hypothesis

Buyers bear a greater share of taxes if demand has this quality.

elastic

Decreases in price lead to an increase in total revenue for this elasticity of demand.

elastic

Markets with low barriers to entry have this price elasticity of supply.

elastic

The slope of the demand curve indicates this characteristic of demand.

elastic

This type of demand curve is relatively flat with elasticity greater than one.

elastic

This type of demand sees a 1% price change cause greater than 1% change in demand.

elastic

This type of supply curve is relatively flat with elasticity greater than one.

elastic

This factor determines the distribution of tax burdens.

elasticity

Medicare serves these two groups.

elderly, disabled

Public health insurance serves these three groups in the United States.

elderly, poor, disabled

The Bureau of Labor Statistics classifies someone who has worked during the previous week in this category.

employed

The unemployment rate divides adults into these three categories.

employed, unemployed, out of labor force

Private health insurance primarily takes this form.

employer pools

Rising employment typically lags expansions for this reason.

employers being slow to hire

Part C Medicare has this function.

enabling private insurance

Strong market pressures push the real interest rate to this point.

equilibrium

Fracking's environmental effects demonstrate this limitation of GDP.

failure to account for social effects

The buyer of a bond assumes this long-term risk.

failure to pay the principal

This effect results from government tax credits incentivizing greater savings.

falling interest rate

An extra supply of savings causes this change in interest rates.

falling interest rates

This factor causes SRAS to shift downwards in a recession following a demand shock.

falling price expectations

Banks charge this interest rate on loans to other banks.

federal funds rate

This interest rate is tied to the discount rate.

federal funds rate

This source funds Medicare Part B to D.

federal income

FFS refers to this mode of paying for healthcare.

fee-for-service

This economic term refers to an order or decree.

fiat

This term refers to media of exchange with no intrinsic value.

fiat money

This term refers to the body's response to stress.

fight or flight

A car sold to a final consumer counts as this type of good in GDP.

final good

Only this type of good has its value counted in GDP.

final good

This term refers to the end-product of a chain of purchases.

final good

The subjectivity of this distinction limits the usefulness of GDP.

final versus intermediate good

A person who wishes to save or invest does so via this institution.

financial market

This institution matches savers to firms that wish to borrow.

financial market

This economic actor combines inputs to create products for consumption.

firm

The presence of economic profit in monopolistic competition has this result.

firm entry

This actor earns revenue from the sale of goods and services.

firms

This actor receives factors of production from households.

firms

This term refers to economic actors who supply goods and services.

firms

This change results when profits fall below zero in a market with monopolistic competition.

firms exiting the market

Inflation creates price distortion through this process.

firms taking time to adjust prices

The government practices these two classes of policy.

fiscal and monetary policy

This term refers to government expenditures designed to affect aggregate demand.

fiscal policy

Demand for healthcare depends on this demand.

for health

The demand for money is linked to this demand.

for less liquid assets

These two types of investment form international capital outflows.

foreign direct and portfolio

This type of capital flow occurred when Mitsubishi purchased the New York Rockefeller Center in 1989.

foreign direct investment

This type of capital flow occurs when an individual acquires and actively manages foreign assets.

foreign direct investment

The AD curve slopes downward due to this phenomenon whereby lower price levels raise consumption.

foreign exchange effects

This term refers to income given up in order to earn income at another price.

forgone income

True economic profit includes this type of income in addition to accounting profit.

forgone income

Market institutions can be divided into these two main types.

formal and informal

RAND HIE used these four levels of copayment.

free, 25%, 50%, 95%

Inflation creates this price-related cost for firms.

frequent adjustment of prices

This type of unemployment occurs when people voluntarily leave their jobs.

frictional

This type of unemployment results from the process of matching jobs and workers.

frictional

Unemployment includes these three primary categories.

frictional, structural, and cyclical

Laparoscopic technology has led to this change in the procedure's delivery.

from inpatient to outpatient

The long-run aggregate supply curve occurs where output and this economic status intersect.

full employment

This mechanism links adverse childhood experiences and health.

gene activation

This term refers to medicine manufactured off-patent.

generic drugs

Doubling the supply of money leads to this change in the value of money (1/P).

halving

A person who has not worked in the past week counts as unemployed under this condition.

having sought work within the past four weeks

RAND HIE randomized its sample on this basis.

health insurance plans

National healthcare systems focus on these three priorities.

health, wealth, equity

Kenneth Arrow argued that this good has a unique level of privacy.

healthcare

Phase I drug trials use this sample.

healthy individuals

Natural monopolies exist due to this condition for joining the market.

high fixed costs

Barriers to entry in the physician marketplace create this result.

high incomes for doctors

The monetary base is equivalent to this other term.

high-powered money

If two curves pass through the same point, the flatter curve has this relative elasticity.

higher

Moral hazard results in this social cost.

higher incidence of adverse events

Increases in GDP per capita ultimately result from this factor.

higher labor productivity

Bondholders have these two main options.

hold until maturity or sell

A bank creates money through this process.

holding fractional reserves

Banks increase liquidity through this process.

holding fractional reserves

Part A Medicare funds these two expenses.

hospital, skilled nursing

The circular flow model depicts this actor as the indirect owner of capital goods.

households

This actor provides factors of production to a firm for income.

households

This actor uses money to consume and save.

households

These three main actors comprise a domestic economy.

households, firms, government

These four categories of actors purchase goods.

households, firms, government, foreign sector

This consequence of changing prices can be observed in the CPI.

how changes in prices affect the cost of a fixed bundle

The demand for money depends primarily on this factor.

how much wealth people hold as money

This determinant of productivity describes skills gained through education and experience.

human capital

Insurance creates this opportunity cost.

immediate income

Monopolistic competition is a form of this type of competition.

imperfect competition

A 5-year-old truck sold for $10,000 in 2015 counts towards GDP in this form.

in 2010 GDP

GDP includes the value of capital goods according to this convention.

in their year of production

This fear causes bank runs to occur.

inability to withdraw deposits

The "Y" in the GDP equation stands for this term.

income

The ACA mandated this sole criterion for Medicaid.

income

Saving occurs in this situation.

income > spending

A negative aggregate supply shock has this effect on the price level.

increase

If MR > MC, increasing supply has this effect on profits.

increase

In the Keynesian model, a fully anticipated aggregate demand shock leads to this effect on the price level.

increase

In the Keynesian model, a negative aggregate supply shock has this effect on the price level.

increase

Low real interest rates have this effect on the quantity of investment projects.

increase in number

This effect on net capital outflows occurs when a domestic company purchases foreign assets.

increase outflows

This effect results from the lowering of reserve requirements.

increased money supply

Elasticity of supply changes in this direction as the time horizon lengthens.

increases

A rise in the economy's price level has this effect on a fixed basket of goods.

increasing cost

Governments create these two primary bureaucratic problems.

inefficiency, corruption

Demand for housing in short time frames has this type of elasticity.

inelastic

Increases in price lead to an increase in total revenue for this type of elasticity of demand.

inelastic

Monopolistic markets have this type of price elasticity of supply.

inelastic

Taxes have less impact on equilibrium quantity for this elasticity of curves.

inelastic

This type of demand sees a 1% price change cause a less than 1% change in demand.

inelastic

This type of supply curve has a significant vertical tilt with elasticity less than one.

inelastic

This demand curve has a significant vertical tilt with elasticity less than one.

inelastic demand curve

Increasing the money supply in an economy may result in this macroeconomic phenomenon.

inflation

The CPI measures this phenomenon.

inflation

This kind of investment adds unsold goods to company stocks.

inventories

The "I" in the GDP equation stands for this term.

investment

This category includes spending by firms on final goods and purchases of new houses.

investment

This component of GDP includes new issues of stock.

investment

This event occurs when a bank lends money to a firm building a factory.

investment

This term refers to the purchase of capital goods.

investment

This factor has caused the United States' GDP deflator to rise more slowly than CPI.

its including only domestically produced goods

The worth of a mutual fund fluctuates with this other value.

its portfolio of assets

Technological progress leads to a decline in firms' demand for this factor of production.

labor

This group consists of all employed or unemployed individuals.

labor force

This group includes all employed and unemployed people.

labor force

This group includes all employed or work-seeking working-age adults.

labor force

This ratio relates the size of the labor force to the working-age population.

labor force participation rate

Households provide these three factors of production to firms.

land, labor, capital

Phase III drug trials involved this kind of study.

large-scale randomized

This curve remains constant regardless of price level on the Keynesian model.

long run aggregate supply curve

Capital goods have this degree of durability.

long-lived

A negative aggregate supply shock shifts the SRAS curve in this direction.

left

A negative shock shifts the AD curve in this direction.

left

The Federal Reserve serves this stabilizing role for the banking system.

lender of last resort

Banks earn profit as an intermediary in this manner.

lending rate > deposit interest

British studies find that supplemental health insurance correlates with these two lifestyle behaviors.

less smoking, more exercise

This term refers to the money a bank holds in deposits.

liabilities

David Cutler and Adriana Lleras-Muney relate this factor to education.

life expectancy

This term describes the ease with which an asset can be converted to a medium of exchange.

liquidity

This term refers to a wage that enables a minimum quality of life.

living wage

The financial market's interest rate indicates the price of this offering.

loan

Special interest groups hire this actor to influence government policies.

lobbyists

This form of vote trading occurs to gain support for a project.

logrolling

This term refers to trading votes in support of politicians' pet projects.

logrolling

Sir William Petty pioneered this task of economics.

measuring national output

Demand for money represents a preference for this property.

medium of exchange

This phrase refers to an item that buyers can use to purchase goods and services.

medium of exchange

Townspeople using salt to purchase goods from one another demonstrates this function of money.

medium of exchange

Money serves these three functions in the economy.

medium of exchange; store of account; store of value

The Oregon Medicaid Experiment found limited insurance coverage harmed this area of health.

mental health

The Sherman Anti-Trust Act regulates these two market events.

mergers, acquisitions

This type of price control directly affects workers' income.

minimum wage

George Akerlof and Joseph Stiglitz argue that competitive insurance markets cannot use this kind of pool.

mixture of low- and high-health people

Nominal units use this type of measurement.

monetary

This term refers to the amount of currency plus reserves.

monetary base

Accounting costs only include these types of expenditures.

monetary expenditures

The Federal Reserve can offset short-run economic fluctuations through this type of action.

monetary policy

This term refers to the act of managing the money supply.

monetary policy

Inflation alters this good's value.

money

This commodity replaced barter for everyday items.

money

This term refers to the amount of money a bank creates from each dollar of reserves.

money multiplier

This term refers to the quantity of money in the economy.

money supply

This value increases when the velocity of money decreases or real GDP increases.

money supply

The price level can only rise under this condition.

money supply growing faster than potential output

Book publishing constitutes this type of market.

monopolistic competition

This type of imperfectly competitive market is most common.

monopolistic competition

This type of market has free entry and exit, differentiated products, and downward sloping demand curves.

monopolistic competition

Members of a cartel agree to behave analogously to this type of firm.

monopoly

This type of imperfectly competitive market has a single supplier.

monopoly

This type of market arises due to barriers to entry.

monopoly

Outcomes in an oligopoly fall between that of these two market types.

monopoly and perfect competition

The Bureau of Labor Statistics reports the CPI at this interval.

monthly

This intermediary provides access to stocks and bonds for savers with limited funds.

mutual funds

A rival good has this quality.

mutually exclusive consumption

The "S" in S = Y - C - G represents this term.

national savings

In a closed economy, investment equals this value.

national savings ("S")

Collective goods often occur in this type of market.

natural monopoly

This market forms when a single firm can supply at a lower cost than multiple firms.

natural monopoly

This term refers to total frictional and structural unemployment.

natural rate of employment

Japan achieved high output per capita while lacking this major determinant of productivity.

natural resources

Kuwait's high standard of living demonstrates the importance of this influence on productivity.

natural resources

This determinant of productivity includes the availability of oil and gas.

natural resources

Public goods have this marginal cost of production.

near-zero

The aggregate demand curve has this kind of slope.

negative

The price elasticity of demand always has this sign.

negative

The existence of this type of negative profit drives producers to leave the market.

negative economic profit

Goods with this type of externality are overproduced.

negative externality

These two primary obstacles prevent the Coase Theorem from being feasible as a solution to externalities.

negotiation costs, unclear property rights

The acronym "NCO" refers to this concept.

net capital outflows

This economic concept equals net exports.

net capital outflows

This term equals the purchase of foreign assets by domestic residents less the purchase of domestic assets by foreigners.

net capital outflows

The "NX" in the GDP equation stands for this term.

net exports

This value equals the value of domestic goods sold to foreigners less the value of foreign goods purchased domestically.

net exports

The "T" in the GDP equation represents this component.

net taxes

This concept refers to the fact that changes in the money supply have no effect on real economic quantities.

neutrality of money

In the Keynesian model, a fully anticipated aggregate demand shock leads to this effect on real GDP.

no change

Companies who issue stock experience this effect when those shares are traded on the market.

no gain in revenue

Changes in the money supply only affect this type of quantity.

nominal

This type of quantity refers to goods measured in monetary units.

nominal

P x Y equals this value.

nominal GDP

This form of GDP uses prices from the current year.

nominal GDP

Diet and exercise constitute this kind of health input.

non-market

This type of good does not diminish in availability when consumed.

non-rival good

Collective goods have these two core characteristics.

non-rival, excludable

Public goods have these two characteristics.

non-rival, non-excludable

The thrifty gene hypothesis suggests early childhood trauma elevates the risk of these two primary diseases.

obesity, diabetes

This term describes drugs prescribed for non-FDA-approved uses.

off-label

OPEC controls this good's supply.

oil

Firms in this type of market maximize profits by functioning as a monopoly.

oligopolies

OPEC functions in this kind of market.

oligopoly

The market for hospital provision has this structure.

oligopoly

This type of market has only a few sellers.

oligopoly

This proportion of drugs under study enter industry use.

one in 5,000

The Coase Theorem requires that this factor be clearly defined.

property rights

Ronald Coase proposed that socially optimum quantities can be attained regardless of this initial condition.

property rights distribution

Public policymakers use these three means of addressing externalities.

property rights, taxes, regulation

The government provides these two primary services in economic theory.

protection of property, security

National defense constitutes this type of good.

public

Tax revenue pays for this category of consumption.

public expenditures

New knowledge represents this type of good.

public good

This type of good is non-rival and non-excludable.

public goods

These three groups' interaction determines the amount of money in the United States' economy.

public, banks, and Federal Reserve

Investment occurs in this situation.

purchase of capital goods

Mutual funds trade stocks and bonds in this way.

purchasing a portfolio and selling shares in it

The Federal Reserve increases the money supply through this open market operation.

purchasing government bonds

Tax reduces this equilibrium value in the market.

quantity transacted

Most economies report GDP at these two intervals.

quarterly and annually

The Beveridge model uses these two deterrents to moral hazard.

queuing, slow technological adoption

The FDA offers exclusivity for these two types of drugs.

rare conditions; in the same class as prior drugs

Accountable Care Organizations penalized hospitals for this event.

readmission after discharge

This type of quantity refers to goods measured in physical units.

real

This measure isolates the effects of changes in production from changes in prices.

real GDP

This measure uses prices from one year to value production in each year.

real GDP

This rule of thumb determines if the economy is in recession.

real GDP declines for two consecutive quarters

This statistic adjusts the total quantity of goods and services produced in an economy for inflation.

real gross domestic product

This type of interest rate factors out the effects of inflation.

real interest rate

This value equals nominal interest rate minus the rate of inflation.

real interest rate

Money is neutral in respect to this factor.

real quantities

A decrease in the inflation rate typically occurs in this part of the business cycle.

recession

Economic activity declines significantly in this type of period.

recession

Rising unemployment occurs in this portion of the business cycle.

recession

The United States' economy entered this stage of the business cycle in March 2001.

recession

This period of economic activity dips from a peak to a trough.

recession

This period of the business cycle sees declining employment.

recession

Rent-seeking involves this process.

redirecting economic benefits

This consequence occurs when the government runs a budget deficit.

reduced investment

Health insurance creates this moral hazard in Ghana.

reduced use of mosquito nets

A rise in the discount rate has this effect on the money supply.

reduction

Medicare insures people with this end-stage condition.

renal disease

This type of price control protects low-income families' housing.

rent control

This type of price control regulates residential housing costs.

rent control

This term refers to unproductive activities that seek to redirect rather than increase economic benefits.

rent seeking

Lobbyists facilitate this process.

rent-seeking

The United States sugar industry exemplifies this economic inefficiency.

rent-seeking

This phrase is abbreviated as R&D.

research and development

The term refers to investments in technological knowledge.

research and development (R&D)

Banks can alter the money supply by changing this value.

reserve ratio

A bank does not loan out this portion of its money.

reserves

This stage follows medical school in the United States.

residency

This kind of investment includes purchases of new homes.

residential fixed

"Thrifty" genes are maladaptive in this environment.

resource-abundant

This situation occurs when the aggregate price level readjusts itself following deviations from potential output.

return to full employment

Taxes create this requirement to pay for public expenditures.

revenue

A decrease in the price level shifts the SRAS curve in this direction.

right

This event spurred the United States government to systematically measure national output.

the Great Depression

A person who has more money than they need to spend takes this action.

saving

This category made up most of the United States' M2 in December 2007.

savings deposits

M2 consists of M1 plus these three categories.

savings deposits, small denomination time deposits, retail money funds

Goods requiring this type of input have more inelastic supply.

scarce

Sir William Petty's work on national output had this immediate purpose.

securing Irish taxes

Japan extended health insurance to this group in 1938.

self-employed households

The Federal Reserve removes money from circulation through this open market operation.

selling government bonds

Companies can raise funds in these two main ways.

selling shares and bonds

This type of expenditure includes intangible goods such as education.

services

This developed country has the shortest average hospital stay.

the United States

The Federal Open Market Committee consists of these 12 people.

seven governors, five regional presidents

An economic expansion typically lasts for this duration.

several years

The SRAS curve responds to a negative aggregate demand shock in this manner.

shifts rightward

This factor causes shocks in aggregate supply or demand to result in recessions or expansions.

short-run inflexibility of prices

The DRG system had this major effect.

shorter hospital stays

RAND HIE covered this number of cities.

six

Elasticity relates to this characteristic of the demand curve.

slope

Phase II drug trials use this kind of study.

small-scale, randomized

This cost sums the marginal cost of production and the cost of resolving externalities.

social cost of production

Cooperation within institutions can improve this characteristic of communities.

social welfare

Deadweight loss results in the reduction of this term.

social welfare

SES refers to this factor.

socio-economic status

The Beveridge model emphasizes this value.

solidarity

The Bismarck model emphasizes these two priorities.

solidarity, economic liberty

This type of bank's assets exceed its liabilities.

solvent

Bismarck's health insurance law served this limited group.

some industries' workers

This economic strategy enables gains from trade.

specialization

These two actors administer Medicaid.

state and federal government

Medicaid provisions can vary greatly depending on this factor.

state of residence

A shareholder can sell shares on this organized market.

stock exchange

The National Association of Securities Dealers Automated Quotation System constitutes this kind of market.

stock exchange

Gold's historic use as a currency illustrates this function of money.

store of value

This type of item transfers purchasing power from the present to the future.

store of value

This type of unemployment involves a mismatch of skills and jobs.

structural

The American steel industry's contraction created this type of unemployment.

structural unemployment

These four factors influence the price elasticity of demand.

substitutes, necessities, market definition, and time horizon

The CPI overstates the effects of inflation due to this failure to account for alternative goods.

substitution bias

Taxes reduce this value since equilibrium quantity decreases.

surplus

This fundamental indicator measures population health.

survival/life expectancy

This phenomenon results when periods of economic expansion outlast recessions.

sustained growth of real GDP

Banks acquire funds to loan out in this fashion.

taking savers' deposits

This term refers to a price wedge between the amount consumers pay and the amount suppliers receive.

tax

The government encourages research and development with these four kinds of incentives.

tax credits, subsidies, direct expenditures, patents

The ACA included this enforcement of mandatory insurance.

tax penalty

The government has these two powers, unlike private institutions.

taxation, legitimate use of force

Congestion charges exemplify this type of regulation of externalities.

taxes

Deadweight loss results from this main government policy.

taxes

Governments use this policy to raise revenue to pay for public expenditures.

taxes

The government receives income from households in this form.

taxes

Governments use these two policies to mitigate social costs and benefits of private actions.

taxes and subsidies

This determinant of productivity includes the use of applied science.

technological knowledge

This part of the Federal Reserve oversees commercial banks and clears checks.

the 12 regional banks

This American institution sets reserve requirements.

the Federal Reserve

This organization acts as the United States' lender of last resort.

the Federal Reserve

Collective goods tend to be produced in this inefficient situation.

too expensive and underproduced

This expression equals average labor productivity.

total output divided by total workers

Multiplying equilibrium price and quantity gives this value.

total revenue

This term refers to equilibrium price multiplied by the equilibrium quantity.

total revenue

This curve intersects market demand above the private market equilibrium.

total social cost

This phenomenon occurs when imports exceed exports.

trade deficit

This phenomenon occurs when exports exceed imports.

trade surplus

This phrase refers to the depletion of a common resource via overuse.

tragedy of the commons

This category of spending includes Social Security payments.

transfer payments

These two government transactions do not count towards its expenditures.

transfer payments and interest on debt

A person who has not worked in the last week but sought work within the past four weeks has this employment category.

unemployed

This category of employment expands when the economy is below potential output.

unemployment

This rate measures the proportion of the labor force seeking jobs.

unemployment

This rate never reaches zero since an economy always has jobseekers.

unemployment

These two factors drive fluctuations in economic growth.

unemployment and inflation

This aggregate uses job-seeking as a proxy for economic performance.

unemployment rate

This measure of work indicates the state of the economy.

unemployment rate

This rate increases with lower job security.

unemployment rate

This rate remains low with high job security and wages.

unemployment rate

This term refers to the fraction of the labor force unable to find work.

unemployment rate

This type of supply curve has both slope and elasticity equal to one.

unit elastic

This demand curve has elasticity equal to one.

unit elastic demand curve

Someone suggesting that a car has the same value as one year of college tuition illustrates this function of money.

unit of account

This function of money allows it to be used to quantify a good's worth.

unit of account

The Bismarck model has these three key characteristics.

universal insurance, community rating, regulated private provision

Bismarck proposed this foundational healthcare law.

universal sickness insurance

The Beveridge model entails this type of insurance.

universal, single payer

Improvements in phone technology cause this distortion in reported inflation.

unmeasured quality change

This source of inflation results from technological improvement.

unmeasured quality change

This term refers to costs that can be changed.

variable cost

This type of cost depends on quantity produced.

variable cost

Risk-averse people avoid this factor.

variance (uncertainty)

The buyer of a bond assumes this short-term risk.

variation in interest rates

This metric indicates how often a dollar is spent in a year.

velocity of money

The exclusion of intermediate goods from GDP accounts for this economic phenomenon.

vertical integration

This phenomenon occurs when a motorcycle company produces its own steel.

vertical integration

The long-run aggregate supply curve has this diagrammatic representation.

vertical line

Diversification in mutual funds reduces this risk.

volatility

This term refers to all the different stores of value in the economy.

wealth

This phenomenon refers to the role of increased wealth in lowering the price level.

wealth effects

These three factors cause the aggregate demand curve to slope downwards.

wealth, interest rate, foreign exchange effects

This limitation of GDP is illustrated in the question of whether national defense is an intermediate good.

what constitutes a final good

High-risk individuals choose high-premium insurance for this reason.

wider coverage

Taxes most effectively solve this type of externality.

with a quantified value

GDP includes goods produced in this geographical range.

within a country's borders

These two primary factors caused a rise in labor force participation in 20th century United States.

women's entrance, declining birth rates

This group includes the employed, unemployed, and out of the labor force.

working-age population

When barriers to entry prevent competition, profits cannot reach this value.

zero

Business owners in a competitive market earn this amount of profit.

zero economic profits

This economist wrote An Inquiry into the Nature and Causes of the Wealth of Nations.

Adam Smith

This pioneering economist theorized that self-interest drives the market.

Adam Smith

This criterion describes an outcome that maximizes total surplus.

Pareto efficient

This situation is one in which well-being cannot be improved without harming someone's welfare.

Pareto efficient situation

These two groups form an economic market.

buyers and sellers

This type of market allocates supply to the buyers who value the good most.

competitive market

This type of market maximizes benefits received from exchange.

competitive market

A lower price for this type of good causes demand for another good to increase.

complement

These two values comprise total economic surplus.

consumer and producer surplus

Actors receive this benefit when purchasing a good at less than the price they are willing to pay.

consumer surplus

This quantity is the difference between the demand curve's height and market price.

consumer surplus

The availability of substitutes affects price elasticity for this market actor.

consumers

Economists assume people make choices by weighing these two types of factors.

costs, benefits

An increase in input costs leads to this type of change in supply.

decrease at every price

This term refers to the amount buyers are willing and able to purchase at any price.

demand

This table uses price and quantity to determine the demand of goods.

demand schedule

Economists primarily use these two types of representations in their work.

diagrams, formulae

Competitive markets have this characteristic function.

efficient allocation of goods

This term describes demand for which a 1% change in price results in a greater than 1% change in the quantity demanded.

elastic

At this point, no participant in the market has a reason to alter their behavior.

equilibrium

This term refers to the intersection of market supply and demand curves.

equilibrium

This situation occurs when sellers have more stock than buyers demand.

excess supply

This term describes situations where an actor affects another's well-being without any compensation being paid.

externalities

Goods with this level of substitutability have higher price elasticity of demand.

high

Inferior goods must have a lower quantity demanded with an increase in this factor.

income

These five factors can shift the market demand curve.

income, related goods' price, tastes, expectations, number of buyers

A decline in a good's price has this effect on the market for its complement.

increased quantity demanded

This term describes demand for which a 1% change in price results in less than 1% change in the quantity demanded.

inelastic

This type of good has a negative correlation between quantity demanded and income.

inferior

Increases in this cost lead to a reduction in quantity supplied at every price.

input costs

These four factors can shift the market supply curve.

input prices, technology, expectations, number of sellers

This term refers to all purchases required to supply a product.

inputs

This concept negatively relates the quantity demanded of a good to its price.

law of demand

This principle defines the relationship between price and quantity demanded.

law of demand

This principle states that quantity demanded has an inverse relation to price.

law of demand

This principle relates quantity supplied to price.

law of supply

This term refers to the positive relation between price and quantity supplied.

law of supply

Necessities generally have lower price elasticities of demand than this type of good.

luxury

This branch of economics focuses on the overall national economy.

macroeconomics

This buyer is indifferent between buying and not buying a good at a certain price.

marginal buyer

The height of the supply curve measures the willingness of this actor to trade.

marginal seller

This seller will leave the market if the price goes any lower.

marginal seller

This type of seller would leave the market if the price decreased.

marginal seller

Shifts in supply and demand affect this characteristic of the market.

market equilibrium

This type of good has lower price elasticities of demand than luxuries.

necessities

This type of good has a demand positively related to the buyer's income.

normal

This type of analysis involves value judgments relating to economic outcomes.

normative economics

The height of the supply curve measures this cost for a marginal seller.

opportunity cost

This term refers to lost benefits given up to gain other benefits.

opportunity cost

The height of the supply curve measures this cost.

opportunity cost of the marginal seller

This measurement reflects consumer sensitivity to changes of price.

price elasticity

This measurement describes how much the quantity demanded responds to a change in price.

price elasticity of demand

This measurement reflects how responsive consumers are to changes in the price of a good.

price elasticity of demand

The law of demand relates this factor to a good's price.

quantity demanded

This quantity is plotted on the x-axis of the demand curve.

quantity demanded

Market demand curves relate these two economic factors.

quantity demanded, price

This quantity is plotted on the x-axis of the supply curve.

quantity supplied

This term refers to the difference between a person's disposable income and expenditures.

savings

This basic economic problem arises from limited resources and unlimited wants.

scarcity

Economists rely on these five basic assumptions.

scarcity, trade-offs, opportunity cost, rationality, gains from trade

Price has this function in a competitive market at equilibrium.

signaling information

A perfectly competitive market requires this type of good or service.

standardized

This term refers to two goods for which an increase in one's price of one leads to an increase in the other's demand.

substitute

This term refers to the amount sellers are willing and able to produce at any given price.

supply

The height of this curve measures the willingness of a marginal seller to supply.

supply curve

This term refers to perceived benefits that affect the quantity demanded of a good.

tastes

This type of progress enables suppliers to produce at lower costs.

technological

This quantity includes the total area under the demand curve and above the market price.

total consumer surplus

This surplus equals the area above the supply curve and below the market price.

total producer surplus

This term refers to the sum of consumer and producer benefits in a market.

total surplus

This economic concept suggests that every choice requires a concession.

trade-offs

This type of decision arises from the scarcity of resources.

trade-offs