HSPM 412 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS| LATEST UPDATE
GUARANTEED SUCCESS
The continued upward growth in health care costs within the United States represents one
major concern with examining health care markets. True
Opportunity cost is a measure of . value based on the alternative not chosen.
Scarcity is defined as: . a situation that exists when the amount of a good or service in the
aggregate exceeds the amount available at a zero price.
Self-interest is the primary motivator of economic decision makers. True
A market failure arises when free markets fail to promote the efficient use of resources by
either producing more or less than the optimal level of output.
A perfectly competitive market assumes: a. Sellers all sell an identical good or service
b. Any individual buyer or any individual seller isn't powerful enough on his or her own to affect
the market price of that good or service
c. Both a and b This is the right answer C
What is NOT an important factor that shifts the demand curve in a market? The price of
unrelated goods
. Assume a competitive market for health care. Use the supply and demand framework, where
quantity of health care is on the horizontal axis and price of health care in on the vertical axis,
to analyze the following situation. Suppose that new legislation passes requiring higher
payments to doctors. What will happen to the equilibrium price and quantity of health care?
The equilibrium price will rise and the equilibrium quantity will decrease.
, What causes a movement along the supply curve in a market? Changes in the price of the
good or service of the market being considered
Which of the following will not shift the demand for office visits to the physician? a change
in the price of an office visit
Elasticity is A measure of how much buyers and sellers respond to changes in market
conditions.
Suppose researchers find that a 20 percent increase in the price of health care decreases the
quantity demanded by 3 percent. Which of the following statements accurately describes the
price elasticity of demand for health care: The elasticity is inelastic with magnitude of 0.15
A binding price floor leads to a shortage. False
Which of the following is an example of a perfectly inelastic medical good? a. Hospital beds
b. First aid kits
c. Chemotherapy/Dialysis Medications-this one C
d. Sutures
something that doesn't have a substitute is the answer
Price elasticity primarily depends on the ability of the consumer to find equivalent substitutes
for a particular good or service. True
Using the diagram above, which area(s) capture the consumer surplus after the tax is
implemented?-Module 4 Area A
Using the diagram above, which area(s) capture the producer surplus after the tax is
implemented?-Module 4 Area F
GUARANTEED SUCCESS
The continued upward growth in health care costs within the United States represents one
major concern with examining health care markets. True
Opportunity cost is a measure of . value based on the alternative not chosen.
Scarcity is defined as: . a situation that exists when the amount of a good or service in the
aggregate exceeds the amount available at a zero price.
Self-interest is the primary motivator of economic decision makers. True
A market failure arises when free markets fail to promote the efficient use of resources by
either producing more or less than the optimal level of output.
A perfectly competitive market assumes: a. Sellers all sell an identical good or service
b. Any individual buyer or any individual seller isn't powerful enough on his or her own to affect
the market price of that good or service
c. Both a and b This is the right answer C
What is NOT an important factor that shifts the demand curve in a market? The price of
unrelated goods
. Assume a competitive market for health care. Use the supply and demand framework, where
quantity of health care is on the horizontal axis and price of health care in on the vertical axis,
to analyze the following situation. Suppose that new legislation passes requiring higher
payments to doctors. What will happen to the equilibrium price and quantity of health care?
The equilibrium price will rise and the equilibrium quantity will decrease.
, What causes a movement along the supply curve in a market? Changes in the price of the
good or service of the market being considered
Which of the following will not shift the demand for office visits to the physician? a change
in the price of an office visit
Elasticity is A measure of how much buyers and sellers respond to changes in market
conditions.
Suppose researchers find that a 20 percent increase in the price of health care decreases the
quantity demanded by 3 percent. Which of the following statements accurately describes the
price elasticity of demand for health care: The elasticity is inelastic with magnitude of 0.15
A binding price floor leads to a shortage. False
Which of the following is an example of a perfectly inelastic medical good? a. Hospital beds
b. First aid kits
c. Chemotherapy/Dialysis Medications-this one C
d. Sutures
something that doesn't have a substitute is the answer
Price elasticity primarily depends on the ability of the consumer to find equivalent substitutes
for a particular good or service. True
Using the diagram above, which area(s) capture the consumer surplus after the tax is
implemented?-Module 4 Area A
Using the diagram above, which area(s) capture the producer surplus after the tax is
implemented?-Module 4 Area F
