Question 1

Economics is the Study of __________

a) Human behavior under stressful situations
b) The interaction of people in social situations
c) Biological systems in the environment
d) Scarcity of resources or goods

Question 2

When someone tries to do something that provides the most personal satisfaction, it is called ____________ by economists.

a) Irrational self-interest
b) Rational self-interest
c) Greed
d) Selfishness

Question 3

Microeconomics is the study of ______, whereas macroeconomics is the study of ________.

a) Small business economics, large business economics
b) The U.S. economy; the world economy
c) Small markets; large markets
d) Economics at the individual level, economics at a national level.

Question 4

Demand is _________________

a) Purely a function of supply
b) Not a factor in economics
c) The amount of a good or service that people want to buy at a certain price for a given period of time.
d) Not measureable

Question 5

Which of the following can increase the price of medical care even if the demand for medical care remains constant?

a) Decrease in the cost of medical care.
b) Availability of high end technology in modern medical services.
c) Increase in the cost of medical care.
d) An increase in preferences for herbal medicines among people

Question 6

Which of the following factors DOES NOT lead to a shift in the demand curve for a particular product?

Income
Its Price
Tastes and Trends
Prices of other goods

Question 7

An increase in consumer incomes will:

Increase the demand for an inferior good
Increase the supply of an inferior good
Increase the demand for a normal good
Decrease the supply of a normal good

Question 8

What is the economic term when you consume a good up to a point when you no longer enjoy consuming it - such as eating too much ice cream?

You are over-satiated
Diminishing Marginal cost
Scarcity of resources
Diminishing marginal utility

Question 9

When lower risk individuals opt-out of health insurance coverage and higher-risk individuals choose to purchase insurance, what is this called?

Moral Hazard
Adverse selection
Pre-existing condition
Expected value

Question 10

What does the demand curve for health care services look like when someone has health insurance coverage?

It is flat.
It is elastic and downward sloping.
Inelastic
It is elastic and upward sloping.

Question 11

Which of the following is not an element of the economic way of thinking?

a) Use assumptions to simplify complex behavior
b) Use normative statements
c) Rational people respond to rational incentives
d) Thinking at the margin

Question 12

If the demand for bandages is relatively elastic, a 10 percent decline in the price of bandages will:

a) Decrease the amount demanded by more than 10 percent
b) Increase the amount demanded by more than 10 percent
c) Decrease the amount demanded by less than 10 percent
d) Increase the amount demanded by less than 10 percent

Question 13

What is the marginal principle? Provide an example of the marginal principle.

Question 14

You have a part-time job at the library that pays $10 per hour, 3 hours per day on Saturdays and Sundays. Some friends want you to join them on a weekend ski trip leaving Friday night and returning Monday morning. They estimate your share of the gas, motel, lift tickets, and other expenses to be around $30. What is your opportunity cost of taking the ski trip?

Question 15

An advance in health care technology that lowers the cost of providing health care will shift he demand curve to right.

True
False

Question 16

Which of the following is the largest component (in dollar value) of healthcare spending in 2014?

a) Physician and clinical services
b) Prescription Drugs
c) Hospital Care
d) Nursing Home and Continuing Care Facilities

Question 17

Which of the following factors IS NOT a determinant of recent increases in national health expenditures.

a) Lower cost-sharing requirements
b) Increased percentage of individuals with insurance
c) Growth in prescription drug expenditures
d) ACA health coverage expansions

Question 18

By 2020, which of the following factors is expected to contribute the most to national health expenditures growth relative to GDP?

Lower medical inflation
Aging of the population
Lower growth rates in GDP
ACA coverage expansions
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