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?

Accepted Answer

Supply elasticity measures the responsiveness of quantity supplied to changes in price.

Question 2

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

Accepted Answer

Marginal cost refers to the change in total cost that results from producing one additional unit of output.

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?

Accepted Answer

Toll goods can lead to market failure because they are excludable but non-rivalrous, meaning people can be prevented from using them even though their use doesn't reduce availability to others, potentially excluding those who value them more than the cost to society.

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?

Accepted Answer

An externality is an economic term for a cost or benefit that affects a third party who did not choose to incur that cost or benefit.

Question 5

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

Accepted Answer

Women often require more healthcare services due to reproductive health needs, including pregnancy, childbirth, and gynecological care, as well as a higher prevalence of certain chronic conditions.

Question 6

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

Accepted Answer

As a consumer's income increases, the demand for inferior goods typically decreases because consumers can afford to purchase more desirable substitutes.

Question 7

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

Accepted Answer

Public goods are nonexclusive because it is not feasible to prevent nonpaying individuals from using them, making exclusion impractical or too costly.

Question 8

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

Accepted Answer

The answer of If the demand for a good 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.

Accepted Answer

The answer of At the point where there is a...

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.

Accepted Answer

The answer of A __________ occurs when the market price...

Question 11

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

Accepted Answer

The answer of Which of the following identifies, predicts, and...

Question 12

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

Accepted Answer

Profit is defined as the price per unit sold less the production cost per unit.

Question 13

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

Accepted Answer

An oligopoly is a market structure where a few firms dominate the market, and there are substantial barriers to entry, but not as complete as in a monopoly.

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.

Accepted Answer

Moral hazard in healthcare occurs when individuals consume more medical services than necessary because they do not bear the full cost, often due to insurance coverage, leading to overutilization.

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.

Accepted Answer

When consumers pay less out-of-pocket due to lower co-payments or co-insurance, they are less affected by price changes, reducing their sensitivity to the cost of healthcare services.

Question 16

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

Accepted Answer

Insured consumers are generally less sensitive to the cost of healthcare goods and services because their insurance covers a portion of the costs, reducing their out-of-pocket expenses compared to uninsured consumers.

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.

Accepted Answer

Utility in healthcare refers to the satisfaction or benefit an individual derives from their health status and the healthcare goods and services they consume.

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.

Accepted Answer

Supply refers to the quantity of goods and services that producers are willing and able to sell over a specific period of time, not what consumers are willing to purchase.

Question 19

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

Accepted Answer

A complement is a product that is often used together with another product, enhancing its value or function.

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.

Accepted Answer

Elasticity measures how much the quantity demanded or supplied of a good responds to changes in price or income, indicating the sensitivity of demand or supply to these changes.

Quiz 9: Health Economics in a Health Policy Context