Economics Chapter 4 Study Guide
(Exhibit: Rent Controls) If rent controls are set at Rent0:
B) some renters would be willing to pay a price as high as Rent4 for Q0 units.
In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was:
B) primarily due to technological change and an increase in the number of sellers.
In the 1960s the dominant maker of mainframe computers was:
A) IBM.
(Exhibit: Rent Controls) If rent controls are imposed, they will most likely be set at either _______ or _______.
A) Rent0; Rent1
During the Great Depression:
A) agriculture was hit particularly hard.
Most firms in the United States today are:
A) sole proprietorships and partnerships.
According to the textbook, much of the discussion about the health-care "problem" in the United States has focused on:
B) rising spending for health care.
In 1960, the percentage of total output the United States devoted to health care was about ________ percent.
B) 5
Between 1930 and 1933, the prices received by farmers tended to:
B) decrease.
A price that the government guarantees farmers will receive for a particular crop is a(n):
B) price support.
(Exhibit: Rent Controls) Without rent controls, the equilibrium rent is _______ and the equilibrium quantity is _______.
C) Rent2; Q2
Which of the following would lead to an increase in the demand for health care?
C) The average population age increases.
The bulk of the nation's output is produced by:
C) corporations.
Health care is a(n):
C) normal good.
A minimum price set above the equilibrium price is a:
C) price floor.
A firm owned by one individual is called a:
C) sole proprietorship.
An arrangement in which consumers choose their health-care services while other institutions pay a share of the cost of those services is called a(n) ________ payer system.
C) third-party.
In 2015, the percentage of total output the United States devoted to health care was about ________ percent.
D) 18
In the market for health care:
D) B and C are true. (the effect of third-party payers decreases the price that consumers pay, providers are encouraged to supply a greater quantity than they would without third-party payers.)
A maximum price set below the equilibrium price is a:
D) price ceiling.