1. After attending medical school, I have decided to encourage all of my family
ID: 1212367 • Letter: 1
Question
1. After attending medical school, I have decided to encourage all of my family members to see me for their healthcare needs because I know their health problems and I have an incentive to keep them alive and as healthy as possible. What type of asymmetric information problem am I trying to correct by having my family members see me for care?
a. Adverse Selection
b. Diminishing returns
c. Principle-agent problem
d. Moral hazard
e. An adverse selection problem that became a principle-agent problem
2. After winning the lottery, I have decided to move from my apartment to a mansion. I have hired a professional company to move my belongings. What type of problem should I be most concerned about?
a. An adverse selection problem that became a principle-agent problem
b. Diminishing returns
c. Symmetric Information
d. Principle-agent problem
e. Adverse Selection
3. For 2 chips and 5 sodas to be a combination of goods to maximize your utility per dollar, the price of chips must be _____ if the price of soda is $1.00.
a. $3.75
b. $3.50
c. $3.00
d. $2.00
e. $2.50
4. Ouch! I am a retired grocery-store owner from Paris who fell out of a tree while bird watching in Dijon, France. The bill from the hospital for putting a cast on my broken are is estimated to be €2,000. How was this price for medical care determined?
a. Not at all by the role of the government as the primary payer of healthcare costs.
b. By the intersection of supply and demand, but the government played a significant monopolist role to control costs
c. By the intersection of supply and demand, but the government played a significant role in increasing supply
d. By the intersection of supply and demand
e. By the intersection of supply and demand, but the government played a significant monopsonist role to control costs. 5
5. A distortion in the healthcare market can occur when:
a. Health insurance companies require individuals to have a primary care doctor
b. When there is a lack of restrictions for entry into the market for delivering health care.
c. Doctors are rewarded for reducing a patient’s recovery time after surgery.
d. The existence of healthcare insurance encourages customers to seek more health care than they otherwise would.
e. The involvement of health maintenance organizations discourages efficiency in healthcare expenditures.
6. Higher prices:
a. Increase the marginal utility per dollar spent and causes consumers to buy more of a good.
b. Lower the marginal utility per dollar spent and cause consumers to buy less of a good.
c. Do not change the marginal utility per dollar.
d. Increase the marginal utility per dollar spent and causes consumers to buy less of a good.
e. Lower the marginal utility per dollar spent and causes consumers to buy more of a good.
Explanation / Answer
(1)The correct answer is option (A)
(2)The correct answer is option (A)
(3)The correct answer is option (B)
(4)The correct answer is option (E)
(5) The correct answer is option (E)
(6) The correct answer is option (A)
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