Question : 31) Refer to Figure 5-1. The market equilibrium price is A) : 1245124

 

 

31) Refer to Figure 5-1. The market equilibrium price is

A) $30.

B) $25.

C) $20.

D) <$20. 32) Refer to Figure 5-1. The market equilibrium quantity is ________ thousand vaccinations. A) 100 B) 200 C) 300 D) >300

 

33) Refer to Figure 5-1. The efficient equilibrium price is

A) $30.

B) $25.

C) $20.

D) <$20.   34) Refer to Figure 5-1. The efficient equilibrium quantity is ________ thousand vaccinations. A) 100 B) 200 C) 300 D) >300

 

35) Refer to Figure 5-1. At the efficient equilibrium

A) economic surplus is maximized.

B) economic surplus is minimized.

C) economic surplus is zero.

D) economic surplus is negative.

 

36) Refer to Figure 5-1. At the market equilibrium

A) the marginal benefit is equal to the marginal cost.

B) the marginal benefit is greater than the marginal cost.

C) the marginal benefit is less than the marginal cost.

D) the marginal benefit is zero.

 

37) Refer to Figure 5-1. At the market equilibrium, the deadweight loss is equal to

A) $0.

B) $250,000.

C) $500,000.

D) $1,000,000.

 

38) Because of the positive externality of vaccinations, economic efficiency would be improved

A) if fewer people were vaccinated.

B) if more people were vaccinated.

C) only if all people were vaccinated.

D) only if no people were vaccinated.

 

39) Vaccinating people against a communicable disease such as influenza not only reduces the chances that the person vaccinated will catch the disease but also reduces the probability that an epidemic of the disease will occur. Which of the following statements is true?

A) Reducing the chances that the person vaccinated will catch the disease is a private cost while reducing the probability of an influenza epidemic is a social benefit.

B) Vaccinating people against communicable diseases yields private benefits in excess of social benefits.

C) Reducing the chances that the person vaccinated will catch the disease is a private benefit while reducing the probability of an influenza epidemic is a social benefit.

D) The benefits of the influenza vaccination outweigh the costs.

 

40) In the United States, the bulk of health care spending is paid by health insurance companies. Such a system is also called a third-party payer system where consumers of health care pay a nominal fee and the rest are paid by the health insurance provider. Why might such a system lead to an inefficient outcome?

A) Health insurance companies have an incentive to control cost and therefore tend to deny consumers many cutting edge medical treatments.

B) Consumers have an incentive to over-consume health care services because they pay prices well below the cost of providing these services.

C) Physicians concerned that insurance companies may not approve payments tend not to order expensive tests for their patients.

D) Consumers fearing that excessive use of health care services may lead to a rise in insurance premiums tend to under-consume health care services.

 

 

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