Question 1(5 points)

Refer to the diagram above. If a plague reduces both labor demand and labor supply, national income, or GDP will:

Question 1 options:

rise slowly.

rise quickly.

stay the same.

fall.

Question 2(5 points)

Following World War II, the federal excise tax on cigarettes in the United States fell as a proportion of the cigarette price because:

Question 2 options:

cigarette prices rose.

the tax was raised only intermittently as cigarette price rose.

cigarette prices fell due to decreased demand.

the tax was decreased due to political pressure.

Question 3(5 points)

The optimal level of vaccination will most often be __________ because __________.

Question 3 options:

100 percent; vaccinations benefit everyone

less than 100 percent; the high marginal costs of the last few may exceed the marginal benefits

50 percent; most who really need the vaccinations will get them

variable; some groups are more susceptible to a disease than others

Question 4(5 points)

Hamilton's research found the U.S. television and radio advertising ban to be ineffective in reducing smoking because:

Question 4 options:

people paid little attention to advertising.

demand was inelastic.

the ban was accompanied by the reduction of anti-cigarette messages.

smokers switched to other forms of tobacco.

Question 5(5 points)

As of 2007 the costs of the least expensive "second line" drugs for treating HIV/AIDS were about __________ percent of the costs of least expensive "first line" drugs.

Question 5 options:

130

415

565

1200

Question 6(5 points)

A primary category of external costs associated with alcohol consumption is:

Question 6 options:

taxes paid to governments.

traffic injuries and fatalities occurring to those who have consumed alcohol.

traffic injuries and fatalities to those who are involved in accidents caused by those who have consumed alcohol.

cigarette smoking by those who drink.

Question 7(5 points)

The HIV/AIDS epidemic has had its greatest toll in:

Question 7 options:

Europe.

the United States.

Southeast Asia.

Africa.

Question 8(5 points)

As of 2012, combined state and federal cigarette taxes are as high as __________ per pack with the state taxes generally constituting a __________ share.

Question 8 options:

$1.52; smaller

$2.00; larger

$3.27; smaller

$4.47; larger

Question 9(5 points)

Manufacturers of legal addictive substances argue that they continue to advertise in order to:

Question 9 options:

get people to start using the substances.

get people to switch brands.

raise more tax monies for the government.

decrease their revenues so they will have less taxes to pay.

Question 10(5 points)

In Thailand __________ condom use by sex workers accompanied __________ rates of sexually transmitted diseases.

Question 10 options:

decreasing; stable

prohibition of; increasing

decreasing; increasing

increasing; decreasing

Question 11(5 points)

HIV/AIDS can be passed:

Question 11 options:

through drinking water.

by mosquitoes.

through contact with blood, blood products, or other bodily fluids.

through drinking water and mosquitoes.

Question 12(5 points)

Flu vaccinations are different from year to year because the strains of flu differ. Suppose that for a given year, because the nature of the particular strain of flu, it is twice as expensive (the marginal cost is twice as high at any output level) to vaccinate. According to the economic analyses, the optimal level of vaccination will:

Question 12 options:

rise because the disease is more dangerous.

rise because people will make greater effort to be vaccinated.

fall because at the previous level, marginal cost will exceed marginal benefit.

fall because fewer people need the vaccine.

Question 13(5 points)

Suppose that cigarettes cost $2.50 per pack, and a state imposes a $1.00 per pack excise tax. In response, average cigarette consumption decreases by 10 percent. This would indicate a price elasticity of:

Question 13 options:

-0.03.

-0.30.

-1.00.

-3.00.

Question 14(5 points)

The 2010-2011 Burkina Faso MenAfriVac program __________ because __________

Question 14 options:

succeeded in reducing meningitis; it lowered the vaccine cost and improved distribution

succeeded in reducing meningitis; the vaccine was more potent than previous vaccines

failed to reduce meningitis; the vaccine was too expensive for people to buy

failed to reduce meningitis; the population would not cooperate in the vaccination programs

Question 15(5 points)

If the prevalence elasticity of prevention demand is __________, then demand for treatment may __________, because the epidemic has abated.

Question 15 options:

small; increase

large; decrease

zero; decrease

infinite; increase

Question 16(5 points)

In Figure 24-3, for smoking, pointEis an unstable equilibrium because:

Question 16 options:

smoking is an addictive habit.

cigarette smoking is an inferior good.

increasing cigarette consumption builds addictive capital, leading to

still more smoking.

Answers (a) and (b) are correct.

Question 17(5 points)

In Figure 24-3 above, for smoking, the term "steady state" means that an addicted smoker has a(n) __________ addictive stock.

Question 17 options:

increasing

decreasing

U-shaped

constant

Question 18(5 points)

In Figure 24-3 above, if the price of cigarettes rises, the consumption of cigarettes could go fromC₄at pointDto:

Question 18 options:

C₃at pointD.

C₂at pointB.

C₅at pointE.

zero at pointF.

Question 19(5 points)

If the demand elasticity is between 0 and -1.0, an increased tax on tobacco or alcohol will:

Question 19 options:

increase consumption and increase tax revenues.

decrease consumption and increase tax revenues.

decrease consumption and decrease tax revenues.

have no impact on consumption or tax revenues.

Question 20(5 points)

Caffeine __________ an addictive drug because it __________.

Question 20 options:

is not; exhibits reinforcement but not tolerance

is: exhibits reinforcement and tolerance

is not; exhibits tolerance but not reinforcement

is not; is not harmful