Reference no: EM13244431

1) A constant price elasticity of demand curve is one whose:
a) slope is the same at very point on the curve
b) price elasticity of demand is the same at every point on thecurve
c) quantity is the same at every point on the curve
d) price elasticity of demand and slope are the same at every pointon the curve

2)Which of the following will lead to a decrease in totalrevenue?
a) price goes up and demand is perfectly inelastic
b) price goes up and demand is price in inelastic
c) price declines and demand is price elastic
d) price increases and demand is price elastic

3) If total revenue goes down when price falls, the priceelasticity of demand is said to be:
a) price inelastic
b) unit price elastic
c) price elastic
d) positive

4)If total revenue goes up when price falls, the price elasticityof demand is said to be:
a) price inelastic
b) unit price elastic
c) price elastic
d) positive

5) Demand is price inelastic if:
a) the price of a good responds slightly to a quantity change
b) the demand curve shifts very little when a demand shifterchanges
c) the percentage change in quantity demanded is relatively smallin response to a relatively large percentage change in price
d) all of the above are true

6) An arrangement in which consumers choose their health-careservices while other institutions pay a share of the cost of thoseservices is called a(n)____ payer system
a) provider fees
b) insurance premiums
c) third-party
d) catastrophic insurance

7) A feature of the health-care market is:
a) that demand has fallen relative to supply
b) that supply has increased relative to demand
c) that demand has increased relative to supply
d) all of the above

8) Price ceilings which lead to shortages will impose costs onsociety because they:
a) will lead to long waiting lines
b) may result in black market prices, which are higher than themarket-determined price would be
c) lead to a smaller quantity offered on the market
d) do all of the above

9) A price ceiling will have no affect if:
a) it is set above the equilibrium price
b) the equilibrium price is above the price ceiling
c) set below the equilibrium price
d) it creates a shortage

10) If the government sets out to help low-income people byestablishing a maximum amount for rent:
a) a price floor has been set and a shortage of rental units payoccur
b) a price ceiling has been set and a shortage of rental units mayoccur
c) in the long run more rental units will appear
d) poor people will definitely be helped

11) A persistent shortage may occur if:
a) the government imposes a price ceiling
b) a price floor is imposed
c) demand keeps falling
d) all of the above occur

12) The equilibrium price is often considered to be"just right"because:
a) it equates the amount supplied with the amount demanded
b) it does not result in a shortage
c) it does not result in a surplus
d) of all the above

13) Those who make economic policy concerning price controls oftendo so in order to:
a) establish a more equitable result based on normativejudgements
b) raise revenues to support activities of government
c) change the facts on which economic theory is built
d) do all of the above