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