LSUS MHA 710 ECONOMICS 1
CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ Economics is best defined as the study of how to run a business most
profitably. True or False..
Answer: False
◍ Inoculation programs against certain diseases such as small pox, polio, and
whooping cough create.
Answer: positive externalities in consumption.
◍ All of the following will cause a shift in the medical care supply curve,
except:.
Answer: A change in the percentage of the population with health insurance
◍ In the nation of Pavlova, a significant proportion of the population suffers
from breathing difficulties later in life. Pavlova Medical produces the only
prescription drug that is effective in treating the condition. Which of the
following terms best describes the situation in the market?.
Answer: Monopoly
◍ Assuming that inputs are perfect complements, how will the production
isoquants be graphically depicted?.
Answer: L-shaped curves
◍ Exhaust from a factory that increases health risks for people living near the
factory is an example of an externality. True or False..
Answer: True
◍ In 2008 and 2009, the
, U. S. economy experienced a deep economic downturn. If there is a
short-run trade-off between inflation and unemployment, to combat the high
unemployment, President Obama should have pursued an inflationary policy
such as a stimulus package of reduced taxes and increased government
spending. True or False..
Answer: True
◍ Suppose the demand curve for medical care services is perfectly inelastic.
What will happen to the equilibrium price and quantity if supply increases?.
Answer: Price will fall and quantity will stay the same.
◍ A society faces many decisions, but a household does not. True or False..
Answer: False
◍ Even in the US, approximately, what percent of medical care is purchased
through insurance, government programs or other third party insurers.
Answer: 90
◍ The following graph depicts the market for CT scanners in the United
States.Assume an initial equilibrium at D1 and S1 with a price of $1.20
million per machine. If the government places a $100,000 excise tax on each
new scanner sold, the new equilibrium price will be:.
Answer: less than $1.30 million.
◍ Public policies aimed at increasing the size of the economic pie also lead to
a higher degree of equality. True or False..
Answer: False
◍ You can stay home and study to do well on your exam or you can go to the
movies with your friends, but not both. This example illustrates:
A. Scarcity and tradeoffs
B. Scarcity but not tradeoffs
C. Tradeoffs but not scarcity
D. Neither tradeoffs nor scarcity.
Answer: A. Scarcity and tradeoffs
◍ Your opportunity cost of going to a Maroon 5 concert during your Spring
, Break is:
A. Zero, because Maroon 5 is your favorite
B. The price of the concert ticket
C. The price of the concert ticket plus the cost of any beverages you buy at
the concert
D. The price of the concert ticket, plus the cost of any beverages you buy at
the concert, and the value of your time.
Answer: D. The price of the concert ticket, plus the cost of any beverages
you buy at the concert, and the value of your time
◍ Which of the following might cause a market to produce less than the
optimal quantity?.
Answer: Market control by a monopolist
◍ Certain employees are eligible for unemployment compensation if they lose
their jobs through no fault of their own. If Jim, a factory worker, will receive
compensation of half his regular pay for 52 weeks while he looks for a job,
then:
A. The unemployment compensation most likely raises Jim's incentive to
save while he is working. Unemployment compensation most likely
increases Jim's efforts to find a new job.
B. The unemployment compensation most likely raises Jim's incentive to
save while he is working. Unemployment compensation most likely
decreases Jim's efforts to find a new job.
C. The unemployment compensation most likely lowers Jim's incentive to
save while he is working. Unemployment compensation most likely
increases Jim's efforts to find a new job.
D. The unemployment compensation most likely lowers Jim's incentive to
save while he is working. Unemployment compensation most likely
decreases Jim's efforts to find a new job..
Answer: D. The unemployment compensation most likely lowers Jim's
incentive to save while he is working. Unemployment compensation most
likely decreases Jim's efforts to find a new job.
CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ Economics is best defined as the study of how to run a business most
profitably. True or False..
Answer: False
◍ Inoculation programs against certain diseases such as small pox, polio, and
whooping cough create.
Answer: positive externalities in consumption.
◍ All of the following will cause a shift in the medical care supply curve,
except:.
Answer: A change in the percentage of the population with health insurance
◍ In the nation of Pavlova, a significant proportion of the population suffers
from breathing difficulties later in life. Pavlova Medical produces the only
prescription drug that is effective in treating the condition. Which of the
following terms best describes the situation in the market?.
Answer: Monopoly
◍ Assuming that inputs are perfect complements, how will the production
isoquants be graphically depicted?.
Answer: L-shaped curves
◍ Exhaust from a factory that increases health risks for people living near the
factory is an example of an externality. True or False..
Answer: True
◍ In 2008 and 2009, the
, U. S. economy experienced a deep economic downturn. If there is a
short-run trade-off between inflation and unemployment, to combat the high
unemployment, President Obama should have pursued an inflationary policy
such as a stimulus package of reduced taxes and increased government
spending. True or False..
Answer: True
◍ Suppose the demand curve for medical care services is perfectly inelastic.
What will happen to the equilibrium price and quantity if supply increases?.
Answer: Price will fall and quantity will stay the same.
◍ A society faces many decisions, but a household does not. True or False..
Answer: False
◍ Even in the US, approximately, what percent of medical care is purchased
through insurance, government programs or other third party insurers.
Answer: 90
◍ The following graph depicts the market for CT scanners in the United
States.Assume an initial equilibrium at D1 and S1 with a price of $1.20
million per machine. If the government places a $100,000 excise tax on each
new scanner sold, the new equilibrium price will be:.
Answer: less than $1.30 million.
◍ Public policies aimed at increasing the size of the economic pie also lead to
a higher degree of equality. True or False..
Answer: False
◍ You can stay home and study to do well on your exam or you can go to the
movies with your friends, but not both. This example illustrates:
A. Scarcity and tradeoffs
B. Scarcity but not tradeoffs
C. Tradeoffs but not scarcity
D. Neither tradeoffs nor scarcity.
Answer: A. Scarcity and tradeoffs
◍ Your opportunity cost of going to a Maroon 5 concert during your Spring
, Break is:
A. Zero, because Maroon 5 is your favorite
B. The price of the concert ticket
C. The price of the concert ticket plus the cost of any beverages you buy at
the concert
D. The price of the concert ticket, plus the cost of any beverages you buy at
the concert, and the value of your time.
Answer: D. The price of the concert ticket, plus the cost of any beverages
you buy at the concert, and the value of your time
◍ Which of the following might cause a market to produce less than the
optimal quantity?.
Answer: Market control by a monopolist
◍ Certain employees are eligible for unemployment compensation if they lose
their jobs through no fault of their own. If Jim, a factory worker, will receive
compensation of half his regular pay for 52 weeks while he looks for a job,
then:
A. The unemployment compensation most likely raises Jim's incentive to
save while he is working. Unemployment compensation most likely
increases Jim's efforts to find a new job.
B. The unemployment compensation most likely raises Jim's incentive to
save while he is working. Unemployment compensation most likely
decreases Jim's efforts to find a new job.
C. The unemployment compensation most likely lowers Jim's incentive to
save while he is working. Unemployment compensation most likely
increases Jim's efforts to find a new job.
D. The unemployment compensation most likely lowers Jim's incentive to
save while he is working. Unemployment compensation most likely
decreases Jim's efforts to find a new job..
Answer: D. The unemployment compensation most likely lowers Jim's
incentive to save while he is working. Unemployment compensation most
likely decreases Jim's efforts to find a new job.
