Deck 10: Health Care Supply

Question 1

The __________________ of the market is heavily dependent on theories of how firms behave, and the topic is often called the theory of the firm.

Answer 1

supply side

Question 2

Most hospitals and nursing homes, and some insurance companies, do not aim to maximize profit but aim instead to maximize other more altruistic goals such as the number of covered lives.

Answer 2

True

Question 3

Which of the following factors underlying the supply curve increases the quantity supplied at every price, causing a rightward shift in the supply curve?

A) Technological change
B) Input price
C) Size of the industry
D) Weather

Answer 3

D

Question 4

Which of the following in the market is now modeled in static and dynamic frameworks, and estimates are made for the responsiveness of price changes in the markets as they are influenced by the quality and breadth of the provider network?

A) Production
B) Competition
C) Technology
D) Advancement

Question 5

what is the factor underlying the supply curve of the following description.
-As the product becomes cheaper to produce, suppliers are willing to offer more for sale at a given market price.

Question 6

what is the factor underlying the supply curve of the following description.
-If physicians' wages were to rise, this increase in labor cost would result in suppliers' decreased willingness to offer as much for sale at the original price.

Question 7

what is the factor underlying the supply curve of the following description.
-Because physicians can use radiology for diagnosis as well as treatment, this will cause the quantity supplied to decrease at every market price, thus shifting the supply curve to the left.

Question 8

what is the factor underlying the supply curve of the following description.
-As more firms enter the market, the aggregate supply of the product will be greater at every price, thus causing supply to shift to the right.

Question 9

Analysis of supply in economics is often dominated in neoclassical frameworks by theories of the firm that are based on an assumption that the firm's main goal is to maximize ________________.

Question 10

An important aspect of healthcare provision is that, typically, firms do not aim to maximize profits nor do they aim to earn any profits at all.

Question 11

Theories based on profit maximization have another use in that they provide a helpful set of performance____________________ against which firms' actual performance can be compared.

Question 12

In the healthcare economy, as in many other markets, if the firm has a high capital-to-labor ratio, it is more responsive to changes in price due to the inability to easily switch production capacity because of the fixed nature of capital or the substitutability of labor for capital.

Question 13

In any market, including the market for healthcare services, there is a __________ relationship between price and quantity supplied.