Question 1 The standard supply/demand framework: Cannot be modified to explain r

Question

Question 1

The standard supply/demand framework:

Cannot be modified to explain real-world events.

should not be modified to explain real-world events.

can be modified to explain real-world events.

explains real-world events with no need for modification

Question 2

The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is :

defined by the dollar cost of the equipment.

the same for every health care provider.

measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine.

defined by the next best use of the money invested in the equipment.

impossible to calculate.

Question 3

The growing popularity of the Atkins (low-carb) Diet caused:

an increase in the demand for bread.

a movement up and to the left along the demand for bread curve.

a movement down and to the right along the demand for bread curve.

a decrease in the demand for bread.

Question 4

What phrase best describes medical care spending in the United States in 2015?

a.Total spending is under control and represents a shrinking percentage of GDP

b.Total spending is rising at double-digit rates and spending is soaring to over $5,000 per capita.

c.Total spending of less than $3 trillion represents less than 13 percent of GDP and almost $3,000 per capita.

d.Total spending of more than $3 trillion represents 18 percent of GDP and approximately $9,500 per capita.

e.Total spending of more than $3 trillion represents 14.8 percent of GDP and almost $6,000 per capita.

Question 5

The explanation for the law of demand involves:

a.suppliers' ability to substitute inputs.

b.consumers' ability to substitute different goods.

c.the government's ability to set prices.

d.the market's ability to equate supply and demand.

Question 6

The “invisible hand” using Adam Smith’s terminology refers to:

a.government control of the market.

b.The money supply that serves to keep the economy working smoothly.

c.Market forces working through the price mechanism.

d.The role of innovation in maintain a steady rate of growth.

e.“behind-the-scenes” policy making to influence how markets allocate scarce resources.

Question 7

Refer to the graphs above. A recent report indicated that 50 intensive-care unit patients die for every 1,000 who are managed with a heart device known as the right heart catheter. Suppose as a result, the FDA limited supply of the heart catheters. The effect of the report and subsequent action by the FDA on the market for right heart catheters is best shown by which of the graphs?

I

II

III

IV

Question 8

If charges for annual checkups were reduced to zero, by federal law, what would happen to quantity supplied and quantity demanded?

Quantity supplied would fall, quantity demanded would rise.

Health care supply and demand quantities are not affected by price, no change.

Quantity demanded would rise, quantity supplied would rise.

Quantity demanded would fall, quantity supplied would fall.

Question 9

An increase in price and decrease in quantity are consistent with a:

leftward shift in demand and no shift in supply.

rightward shift in supply and a rightward shift in demand.

rightward shift in supply and no change in demand.

leftward shift in supply and no shift in demand.

Question 10

Refer to the graphs above. A recent report indicates that the device known as the right heart catheter used to diagnose heart conditions poses more risks than previously thought. The effect of the report on the market for right heart catheters is best shown by which of the graphs?

I

II

III

IV

Explanation / Answer

Answer 1) The demand supply Framework d) explains real world events , without any modifications.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.