Healthcare Economics Questions In Tutorial Library

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TITLE: Healthcare Economics Questions

CLASS / COURSE: Healthcare

QUESTION DESCRIPTION:

1. If the supply (level) of RNs decreases, and the level of demand for healthcare increases, what will happen to the equilibrium price and quantity?

a. Price will increase and quantity will increase.

b. Price will increase and quantity will decrease.

c. Price will increase and quantity will be indeterminate.

d. Price will be indeterminate and quantity will increase.

e. None of the above


2. What will happen to the equilibrium price and quantity of healthcare if the population increases?

a. Price will increase, quantity will be unchanged

b. Price will decrease, quantity will be unchanged

c. Price will increase, quantity will decrease.

d. Price will increase, quantity will increase


e. None of the above

3. Which of the following about price elasticity of demand is NOT true?

a. It measures the responsiveness of quantity demanded to a change in price

b. It is the percentage change in price divided by the percentage change in quantity demanded

c. If the percent change in price is greater than the percent change in quantity demanded then demand for the good is elastic.

d. If the percent change in price is less than the percent change in quantity demanded then demand for the good is inelastic.

e. None of the above
 

4. Which of the following factors leads to a change in the level of demand (shift in the demand curve)?

a. The price of the good

b. Price of substitutes for the good

c. The number of suppliers

d. All of the above

e. None of the above
 

5. Which of the following factors leads to a change in quantity demanded (movement along the demand curve)?

a. The price of the good

b. Price of substitutes

c. Price of complements

d. The number of consumers

e. All of the above

 

6. According to studies undertaken by the U.S Department of Agriculture, the price elasticity of demand for cigarettes is between –0.3 and –0.4 and the income elasticity is about +0.5. Suppose a major brokerage firm advised its clients to buy cigarette stocks under the assumption that, if consumer incomes rise by 50 percent as expected over the next decade, cigarette sales will double. Is this good advice?

a. Yes, price elasticity indicates this will happen.

b. Yes, income elasticity indicates this will happen.

c. No, price elasticity indicates that the change will not be that great.

d. No, income elasticity indicates that the change will not be that great.

e. None of the above.
 

7. According to studies undertaken by the U.S Department of Agriculture, the price elasticity of demand for cigarettes is between –0.3 and –0.4 and the income elasticity is about +0.5. Suppose the Congress, influenced by studies linking cigarette smoking to cancer, plans to raise the excise tax on cigarettes so the price rises by 10 percent. Estimate the effect the price increase will have on cigarette consumption (in percentage terms).

a. Cigarette consumption will rise 6 to 8 percent.

b. Cigarette consumption will fall 6 to 8 percent.

c. Cigarette consumption will fall 3 to 4 percent.

d. Cigarette consumption will increase 3 to 4 percent.

e. None of the above.

 

8. Suppose angioplasty and coronary artery bypass graft (CABG) surgery are substitute treatment alternatives for coronary artery disease. What should happen to the equilibrium P and Q of angioplasty procedures if a new CABG technique is introduced that is less invasive and requires one-third the recovery period of regular CABG surgery?

a. Both P and Q will increase.

b. Both P and Q will decrease.

c. P will increase and Q will decrease.

d. P will decrease and Q will increase.

e. The introduction of a new CABG procedure should have no effect on the P or Q
of angioplasty procedures.
 

9. A shortage of hospital beds will likely lead to

a. An increase in the supply of hospital beds.

b. A decrease in the demand for hospital beds.

c. An increase in the price of a hospital stay.

d. A decrese in the price of a hospital stay.

e. None of the above.
 

10. A physician's office expenses increase 10 percent so she decides to raise the price of office visits by that much. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice revenues?

a. Office visits and total revenue stay the same if demand is elastic.

b. Office visits and total revenue rise if demand is inelastic.

c. Office visits and total revenue fall if demand is inelastic.

d. Office visits will fall and total revenue will rise if demand is inelastic.

e. Office visits will rise and total revenue will fall if demand is elastic.


 

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1. Marketing
2. Business Economics
3. Economics

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