1. Which of the following describes the accuracy of the Consumer Price Index (CPI)?

a.Changes in the CPI are unrelated to the true rate of inflation.

b.

Changes in the CPI understate the true rate of inflation.

c.

Changes in the CPI accurately reflect the true rate of inflation.

d.

Changes in the CPI overstate the true rate of inflation.

2. Which of the following measurements gives the least accurate indication of the economic wellbeing of people?

a.average life expectancy

b.GDP growth rate

c.distribution of income

d.infant mortality rate

3. Supplier-induced demand for health care results from

a.asymmetric information between health care providers and patients.

b.asymmetric information between the government and insurers.

c.moral hazard between healthcare providers and patients.

d.the government regulations restricting healthcare supply.

4. When a person has private insurance and must pay a percentage of medical care charges, this payment is referred to as:

a.an annual premium

b.a deductible.

c.a coinsurance payment.

d.a fee for service

5. What is the effect of a minimum wage in a low-skill labor market?

a.a lower wage rate than the market wage rate.

b.a higher quantity of labor demanded.

c.a higher wage rate than the market wage rate.

d.a shortage of low skill labor.

6. Which of the following is NOT a reason for the poor health outcomes in the US despite high and increasing health care expenditure?

a.waste and inefficiency

b.rapid technological change

c.attitudes of patients

d.shortage of health care professionals and nurses

7/ Large-scale immigration of low-skill immigrants can result in:

a.a lower wage in low-skill labor markets.

b.a reduction in overall employment in low-skill labor markets.

c.higher employment of native-born workers in low-skill labor markets.

d.higher wages in all types of labor markets.

8/ A recession is defined as

a.two years of declining GDP.

b.a contraction in the economic growth rate from 5 per cent to 3 per cent

c.a significant decline in inflation and unemployment lasting more than a few months.

d. two consecutive quarters of declining GDP.

9/ Which of the following is a supply-side policy that can be used to achieve economic growth?

a. An increase in capital.

b. A decrease in unnecessary regulations.

c. An improvement in labor productivity.

d. All of the above.

10/ Price ceilings on food products in developing countries contribute to:

a.shortages of food.

b.increased incentives for food production.

c.higher incomes for farmers.

d.surplus of food