Deck 9: Health Economics in a Health Policy Context

Question 1

Which of the following is defined as the percentage change in quantity supplied resulting from a 1% increase in the price of buying the good?

A) Demand elasticity
B) Supply elasticity
C) Consumer elasticity
D) Production elasticity

Answer 1

B

Question 2

Which of the following refers to the price of producing one more unit of the output?

A) Average cost
B) Marginal cost
C) Labor cost
D) Overhead cost

Answer 2

B

Question 3

Which types of goods may lead to market failure if the cost of using the good excludes users who would gain more from enjoying the good than they would cost society by consuming the good?

A) Nonrival goods
B) Exclusive goods
C) Toll goods
D) Private goods

Answer 3

C

Question 4

Which of the following is defined as any valued impact resulting from any action that affects someone who did not fully consent to it through participation in a voluntary exchange?

A) Externality
B) Abnormality
C) Anomaly
D) Informality

Question 5

Before the age of 65 years, women generally have needs for more healthcare services than men do.

Question 6

As a consumer's income increases, the demand for inferior goods will also increase.

Question 7

A public good is nonexclusive because it is too costly to try to exclude individuals who are nonpaying from enjoying public goods.

Question 8

If the demand for a good is not sensitive to changes in price, the product is __________.

Question 9

At the point where there is a balance between the price quantity supplied and the quantity demanded and the price is set to the marginal cost of production, there is __________ in the market.

Question 10

A __________ occurs when the market price in a competitive market is higher than the marginal cost of production causing producers to lower their prices and increase sales of their product.

Question 11

Which of the following identifies, predicts, and evaluates who receives a benefit and who pays for public policy?

A) Macroeconomics
B) Positive economics
C) Normative economics
D) Descriptive economics

Question 12

Which of the following is defined as the price per unit sold less the production cost per unit?

A) Cost
B) Profit
C) Supply
D) Demand

Question 13

What type of market structure is characterized by having a few dominant firms and substantial, but not complete, barriers to entry?

A) Perfectly competitive
B) Monopoly
C) Oligopoly
D) Monopsony

Question 14

The problem of moral hazard is particularly relevant in health care because consumers are incentivized to access more medical care if they think it will make them feel better.

Question 15

As the portion of the healthcare cost that a consumer pays based on co-payments or co-insurance decreases, the consumer becomes less sensitive to changes in the cost of the product.

Question 16

Insured consumers are equally as sensitive to the cost of healthcare goods and services as uninsured consumers are.

Question 17

In health care, an individual's utility can be thought of as a function of their health and the healthcare goods and services they desire.

Question 18

Supply is the quantity of goods and services that a consumer is willing and able to purchase over a specific amount of time.

Question 19

A complement is a product that is associated with another product.

Question 20

Elasticity is the term used to describe how responsive the change in demand or supply is when there is either a change in price or a change in income.