Chapter 5 - Econ

Front

People who buy houses in good-weather locations receive this benefit absolutely for free.

Back

True

Front

If the quantity demanded of medical care is higher at a zero price than at some positive price, then it follows that the demand for those specific items that make up health care will be higher (than it would be if the quantity demanded of health care were lower).

Back

True

Front

The existence of a third party in the medical care market separates the buying of medical care from the paying for medical care.

Back

True

Front

Colleges and universities use such things as grade point averages and standardized test scores as

Back

non-price rationing devices

Front

To an economist, freeway congestion is a sign that the price to drive on the freeway is

Back

below its equilibrium level

Front

Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. Which toll creates equilibrium at 8 a.m.?

Back

P2

Front

Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. A toll of P1 creates __________ at 8 a.m. and __________ at 11 p.m.

Back

a shortage; a surplus

Front

Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. Which toll creates equilibrium at 11 p.m.?

Back

0

Front

Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. A toll of P2 creates __________ at 8 a.m. and __________ at 11 p.m.

Back

equilibrium; a surplus

Front

Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. Which toll creates equilibrium at 8 a.m.?

Back

P2