PHLT 412 Exam 3 Texas A & M University-College Station | UPDATED
Questions with 100% Verified Answers
Question:
Utility analysis:
Answer:
Diminishing marginal utility
Opportunity costs
Question:
Diminishing marginal utility:
Answer:
Happiness and well-being does not always increase as quantity increases
Question:
Opportunity costs:
Answer:
Costs associated with option you chose; the option you chose and dealing with the costs
of of choosing that
Question:
Scarce resources:
Answer:
Finite amount of healthcare goods, personnel and capital inputs. Consumer choices are
based on efficiency (allocative, production, technical)
Question:
Allocative efficiency:
Answer:
Most value/benefit from goods and services.
Question:
Production efficiency:
, Answer:
Reducing the cost of input to make resources
Question:
Technical efficiency:
Answer:
Doing the least to get the good
Question:
Demand:
Answer:
The quality of goods and services that a consumer is willing and able to purchase over a
specified time.
Question:
Common demand shifters:
Answer:
Price of original good
Price of substitute good
Price of complimentary good
Income
Quality (actual or perceived)
Demographics of person
Question:
Demand elasticity:
Answer:
The percentage change in the quantity demanded resulting from a 1% change in price or
income. % change in quantity demanded/%change in price. If a product is elastic a
change in price/income will result in an equivalent or greater change.
Question:
Demand/Supply elastic:
Answer:
, Change is greater than plus or minus 1
Question:
Demand/Supply inelastic:
Answer:
Change is smaller than plus or minus 1
Question:
Health insurance and demand:
Answer:
Health insurance acts as a buffer between the consumer and cost of healthcare goods
and services. Goods and services cost the consumer less than the charged price
because of the presence of health insurance.
Question:
Moral hazard:
Answer:
Because a consumer does not pay the full cost of a good, the consumer may purchase
more goods than he would otherwise purchase without insurance.
Question:
Supply:
Answer:
The amount of goods and services that producers are able and willing to sell at a given
price over a period of time. Suppliers are driven to maximize profits. In a competitive
market, profit is maximized at the level of output where marginal cost equals price.
Question:
Common supply shifters:
Answer:
Input cost
Sale price
Number of sellers
Change in technology
Questions with 100% Verified Answers
Question:
Utility analysis:
Answer:
Diminishing marginal utility
Opportunity costs
Question:
Diminishing marginal utility:
Answer:
Happiness and well-being does not always increase as quantity increases
Question:
Opportunity costs:
Answer:
Costs associated with option you chose; the option you chose and dealing with the costs
of of choosing that
Question:
Scarce resources:
Answer:
Finite amount of healthcare goods, personnel and capital inputs. Consumer choices are
based on efficiency (allocative, production, technical)
Question:
Allocative efficiency:
Answer:
Most value/benefit from goods and services.
Question:
Production efficiency:
, Answer:
Reducing the cost of input to make resources
Question:
Technical efficiency:
Answer:
Doing the least to get the good
Question:
Demand:
Answer:
The quality of goods and services that a consumer is willing and able to purchase over a
specified time.
Question:
Common demand shifters:
Answer:
Price of original good
Price of substitute good
Price of complimentary good
Income
Quality (actual or perceived)
Demographics of person
Question:
Demand elasticity:
Answer:
The percentage change in the quantity demanded resulting from a 1% change in price or
income. % change in quantity demanded/%change in price. If a product is elastic a
change in price/income will result in an equivalent or greater change.
Question:
Demand/Supply elastic:
Answer:
, Change is greater than plus or minus 1
Question:
Demand/Supply inelastic:
Answer:
Change is smaller than plus or minus 1
Question:
Health insurance and demand:
Answer:
Health insurance acts as a buffer between the consumer and cost of healthcare goods
and services. Goods and services cost the consumer less than the charged price
because of the presence of health insurance.
Question:
Moral hazard:
Answer:
Because a consumer does not pay the full cost of a good, the consumer may purchase
more goods than he would otherwise purchase without insurance.
Question:
Supply:
Answer:
The amount of goods and services that producers are able and willing to sell at a given
price over a period of time. Suppliers are driven to maximize profits. In a competitive
market, profit is maximized at the level of output where marginal cost equals price.
Question:
Common supply shifters:
Answer:
Input cost
Sale price
Number of sellers
Change in technology
