Econ Test 3
Based on the article Last word Singapore's efficient and effective health care system, which is not a method singapore used to provide a top-tier health care system?
A national health care plan
An increase in income leads to greater demand for health care. this implies health care is:
A normal good
Average fixed costs
AFC = TFC/Q
Average total costs
ATC = TC/ Q
Average variable costs
AVC = TVC/ Q
The affordable care act aims at solving which one of the major problems the united states is experiencing in the health care industry?
Access to Health Care
When one party has more information about some aspect of product quality the other does not have access to, this is known as
Adverse selection
Which is an example of an explicit cost of Sue's Flower Shop?
Advertising Costs
Which of the following industries would you expect would have the smallest concentration ratio?
Agricultural Products
Which of the following represents a long-run adjustment?
BMW constructs a new assembly plant in South Carolina
Which of the following is NOT an example of moral hazard?
Bill purchases a painting from craigslist and later finds out that it is a forgery
Which of the following is an example of price discrimination?
Early Bird Specials for shoppers who shop early.
Which of the following ways did the Affordable Care Act expanded coverage to the poor?
Expand Medicaid
The primary goal of the Affordable Care Act is:
Extend health insurance coverage to all Americans
Which of the following is not an economic implication of higher health care costs?
Government surpluses
If you owned a small farm, which of the following would be a fixed cost?
Hail insurance
Which of the following is the most visible effect of an increase in the cost of health care?
Higher health insurance premiums
Health insurance has lead to an
Increase in demand, increasing in equilibrium price
In recent years one of the major problems with the health care industry is:
Increasing cost
**Which of the are the problems with health insurance in the United States?
Increasing costs and lack of access
**One reason for market failure in the health care industry is:
Insurance distorts prices
Based on the Case Study 1 articles, both articles discuss the importance of informing consumers of prices this is important because:
It informs consumes and increase competition
Which of the following is an example of adverse selection?
Jim buys a car from a used car salesman
Marginal Costs
MC = DeltaTC/DeltaQ
Which of the following ways did the Affordable Care Act expanded coverage to the poor?
Mandate employers to provided insurance
Which of the following ways did the affordable care act expanded coverage to the poor
Mandate employers to provided insurance
Relative to the rest of the world, the U.S. spends ___ on health care (As a percentage of the whole economy)
More
** A main reason the United States does not have a national health care plan because
Most Americans are very happy with their health insurance
The steel and automobile industries would be examples of which market model?
Oligopoly
**Moral Hazard Occurs When
One Party changes behavior because they do not experience risk
There would be a unique product for which there are few or no close substitutes under which market model?
Pure Monopoly
**Four Market Models
Pure competition, pure monopoly, monopolistic competition, oligopoly
**Which of the following is an example of Adverse selection?
Sam gets a physical, which is required by his health insurance company
**Per Capita spending on health care in the United States, relative to other countries is:
Significantly higher
Which of the following is NOT one of the reasons for increasing health care costs?
Supply of Physicians
Which of the following best approximates a pure monopoly
The Only bank in a small town
A major distinction between a monopolistically competitive firm and an oligopolistic firm is that:
a recognized mutual interdependence exists between firms in one industry but not in the other.
The law of diminishing returns indicates that:
as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.
A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 1000 units is $2.50. The minimum possible average variable cost is $2.00. The market price of the product is $2.50. To maximize profit or minimize losses, the firm should:
continue producing 1000 units.
One reason market failure is present in the Health Care industry is:
diminishing returns to health
Based on the article How the ACA May health costs, which of the following is one way the ACA decreased the cost of health care
implementation of accountable care organization
Based on Case Study 2, German Companies Take Back the Power, the market for energy was initially a(n):
monopoly, but is moving toward a competitive market.
Based on Case Study 2, Bill should:
produce less in the short-run and exit in the long-run.
The market structure with the largest number of firms is:
pure competition
Under which market model are the conditions of entry the most difficult?
pure monopoly
Which market structure has the most control over price?
pure monopoly
A firm's output is currently such that its marginal cost is $4 and marginal revenue is $5. Assuming profit maximization, the firm should:
raise it's output
Economic profits are typically:
smaller than accounting profits because the former take implicit costs into account.
Suppose firms selling pizza in Columbia, on average, have the folowing revenue and cost structure: Price: $10.00 AFC: $5.00 AVC: $6.00. Pizza firms will:
stay open in the short run and exit in the long run.
