Reference no: EM131085878

1. A primary cause of inefficiency in government is that

A. Antitrust is applied to government policies as well as market situations

B. Government employees tend to be lazier than private-sector employees

C. The gains from government projects are often concentrated, while the costs are dispersed among all taxpayers

D. Markets interfere with governments

E. All of these are true

2. According to the survey reported in the text, most people believe that health related goods and services should be allocated by the ___ allocation mechanism.

A. First come, first served

B. Random

C. Government

D. Price

E. Private

3. It is ___ that transfer(s) consumer surplus to producers and create(s) deadweight losses.

A. The commodity market

B. Restrictions to entry

C. The allocation mechanism

D. Government

E. Perfect competition

4. The practice of legislators supporting one another's projects in order to ensure support for their own is called

A. Social regulation

B. Partisanship

C. Democracy

D. Logrolling

E. Wasteful

5. When shopping in some countries, bargaining is standard. The sellers ask for a high price to start, and then decrease the price until the sale is made. This is due to

A. Producers trying to gain as much consumer surplus as they can

B. Prices changing so quickly that it doesn't make sense to make price tags

C. No government control

D. The market unable to reach equilibrium

E. Consumers trying to gain as much consumer surplus as they can

6. All of the following are examples of a first come, first served system of allocation EXCEPT

A. Classes at school

B. Tickets to concerts

C. Medical care

D. Access to highways

E. All of these are examples allocated by a first come, first served system

7. True or false? In a market system, those who own the most highly valued resources have the highest incomes.

8. True or false? Since consumers do not have to choose whether to use their own money for health care or for something else, the role of price as an allocation mechanism does not work in health care.

9. Health economics is important to study for all of the following reasons EXCEPT

A. Spending for health care in the U.S. Exceeds $2 trillion

B. The elderly are the smallest users of health care, and the young are the major users

C. Only 1% of the population account for almost 30% of total health care expenditures

D. Health care expenditures have risen from 5.9% of GDP in 1965 to over 16% of GDP today

E. None- all of these are true

10. An illegal drug dealer will maximize profit by providing and selling the quantity of drugs where

A. Private costs equal social costs

B. The greatest number of consumers can be derived

C. The price is maximized

D. Private property rights are best defined

E. Marginal revenue equals marginal cost