In the United States, price ceilings on human organs have caused an increase in demand.
Answer the following statement true (T) or false (F)
False
The price does not cause a change in demand-only a change in quantity demanded.
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The water and diamonds paradox of value
A) is that water is essential for life and yet is cheap, whereas diamonds are totally nonessential and yet are expensive. B) points out that we generally have a low total utility of water and a high total utility of diamonds. C) is resolved by the principle that market price is determined by total utility, not marginal utility. D) none of the above
The strengths of the British National Health Service (NHS) include:
a. the fact that there is a surplus of clinicians, so there is little need for foreign-trained physicians and nurses to practice in Britain. b. the fact that no one has the ability to jump to the top of the slow-moving waiting list for medical treatment. c. the fact that patients have access to all medically necessary care regardless of cost. d. good access to primary and preventive care. e. the fact that there are no differences in access to medical care based on socioeconomic status or geographic location.
When a good causes positive external benefits to accrue to third parties, an unfettered market will
A) under-allocate resources to the good causing the benefit. B) over-allocate resources to the good causing the benefit. C) cause the equilibrium quantity, established before the benefit is taken into account, to be produced more efficiently. D) eliminate such goods.
Market failure
A. Occurs whenever the government pursues laissez-faire policies. B. Occurs whenever the government intervenes in the market mechanism. C. Occurs whenever an imperfection in the market mechanism prevents optimal outcomes. D. Never occurs.