Multiple Choice Questions, Please choose the Correct answer:

1. In the health expenditure function ( ) is:

A. The minimum expenditure on health care services.

B. The constant expenditure on health care services.

C. The expenditure on health care services when income

equal zero.

D. All of the above are true.

2. If the household health care expenditure function is

( E = 3500 + 0.25 Y ) then constant health care expenditure

of this household at income 20000 SR equal :

A. 5000 SR.

B. 3500 SR.

C. 8500 SR.

D. 12000 Sr.

3. The factors that cause an increase in demand of health care services are:

A. Population size.

B. Health Insurance program.

C. Prices of complements.

D. All of the above are true.

4. The factors that cause an increase in supply of health care services are:

A. Population size.

B. Health Insurance program.

C. Prices of complements.

D. All of the above are wrong.

5. The factors that cause an decrease in supply of health care services are:

A. Numbers of health care providers.

B. Technology.

C. Prices of health resources.

D. All of the above are true.

6. An increase in the demand of health care services will cause:

A. Increase in price and decrease in quantity of health care services.

B. Decrease in price and quantity of health care services.

C. Increase in price and quantity of health care services.

D. All of the above are true.

7. In the pure monopoly market of health care services:

A. There are many sellers

B. Individual firm's market share is tiny.

C. There are non barriers to Entry

D. All of the above are wrong.

8. When the elasticity of the demand of health care services equal ( 1.2 ) , the firm should :

A.Make an increase in its prices.

B. Make a decrease in its prices.

C. Make its prices constant.

D . All of the above are true.

9. Law of increasing opportunity cost of health care services cause:

A. Negative slope of PPC.

B. Positive slope of PPC.

C. decreasing slope of PPC.

D. All of the above are wrong

.

10. In health care market the economic problem arise from:

A. The limitless of needs.

B. The scare of health resources.

C. A + B.

D. All of the above are true.

11. Health care economic studies:

C. The supply of health care resources.

D. The demand of health care resources.

E. The impact of health care resources on a population.

F. All of the above are true.

12. In the health expenditure function ( ) is:

A. The minimum expenditure on health care services.

B. The maximum expenditure on health care services.

C. The expenditure on health care services when income

equal zero.

D. All of the above are true.

13. If elasticity of demand of health care services equal

1.3, we recommend the health care firm to :

A. Increase the price of health care services.

B. Decrease the price of health care services.

C. Make the price of health care services constant.

D. All of the above are wrong.

14. If elasticity of demand of health care services equal

- 0.3 , we recommend the health care firm to :

A. Increase the price of health care services.

B. Decrease the price of health care services.

C. Make the price of health care services constant.

D. All of the above are wrong.

14. If elasticity of demand of health care services equal

- 1.3 , we recommend the health care firm to :

A. Increase the price of health care services.

B. Decrease the price of health care services.

C. Make the price of health care services constant.

D. All of the above are wrong.

15. If elasticity of demand of health care services equal

- 1 , we recommend the health care firm to :

A. Increase the price of health care services.

B. Decrease the price of health care services.

C. Make the price of health care services constant.

D. All of the above are wrong.

16. If the percentage change in quantity demand equal

34% and percentage change in price of health care

services equal 29%, then elasticity the demand equal:

A. Inelastic.

B. Elastic.

C. Perfectly inelastic.

D. Perfectly elastic.

17. If the percentage change in quantity demand equal

34% and percentage change in price of health care

services equal 35%, then we recommend the health

care firm to :

A. Increase the price of health care services.

B. Decrease the price of health care services.

C. Make the price of health care services constant.

D. All of the above are wrong.

17. If the percentage change in quantity supplied equal

34% and percentage change in price of health care

services equal 35%, then we recommend the health

care firm to :

A. Increase the price of health care services.

B. Decrease the price of health care services.

C. Make the price of health care services constant.

D. All of the above are wrong.