A shortage of hospital beds in a hospital services market will lead to:
a. a decrease in the demand for hospital beds.
b. upward pressure on the price of a hospital stay.
c. a construction boom to eliminate the shortage.
d. an increase in the supply of hospital beds.
e. downward pressure on the price of a hospital stay.
b. upward pressure on the price of a hospital stay.
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Which of the following is the formula for total cost?
a. TC = ATC x MC b. TC = ATC ÷ MC c. TC = MC ÷ q d. TC = ATC x q
Human effort that can be applied in the production process is called:
A) natural resources. B) technology. C) labor. D) specialization.
Economic rent is a concept that can be applied
A) only to land, as that is the only resource that is in limited supply. B) only to land and natural talent. C) to any factor of production that is fixed in supply. D) to any resource or factor of production that has a supply curve with a positive (upward) slope.
Which of the following is not an advantage of risk pooling?
A) By insuring large groups as opposed to individuals, health insurance providers reduce adverse selection. B) It gives very sick people in the group the same access to health care and to pay the same premiums as healthy individuals. C) It is easier for an insurance company to estimate the average number of claims likely to be filed under a group policy than it is to predict the number of claims likely to be filed under an individual policy. D) Individuals who are insured and therefore do not have to pay the full cost of health care services may be inclined to over-use those services.