When economists say that health care services are overconsumed, they mean that:
A. rich people buy too much health care and poor people buy too little.
B. some resources now used in the health care industry could produce alternative goods and services that society values more highly.
C. health care is being purchased in amounts such that marginal benefits exceed marginal costs.
D. the price of health care is below equilibrium so that quantity demanded exceeds quantity supplied.
For most nations, per capita spending on health care tends to:
A. remain constant as per capita income increases.
B. rise much faster than per capita income.
C. rise proportionately with per capita income.
D. fall as per capita income increases.
An increase in the poverty rate:
A. will necessarily shift the Lorenz curve toward the diagonal.
B. will necessarily shift the Lorenz curve away from the diagonal.
C. may leave the Lorenz curve unchanged.
D. normally accompanies strong growth of the economy.
idk i think c
To determine the correct answer for each question, we can go through the options and analyze them one by one.
1. When economists say that health care services are overconsumed, they mean that:
A. rich people buy too much health care and poor people buy too little.
B. some resources now used in the health care industry could produce alternative goods and services that society values more highly.
C. health care is being purchased in amounts such that marginal benefits exceed marginal costs.
D. the price of health care is below equilibrium so that quantity demanded exceeds quantity supplied.
The correct answer is option C. When economists say that health care services are overconsumed, they mean that health care is being purchased in amounts such that marginal benefits exceed marginal costs. This means that people are consuming more health care services than what is economically efficient.
2. For most nations, per capita spending on health care tends to:
A. remain constant as per capita income increases.
B. rise much faster than per capita income.
C. rise proportionately with per capita income.
D. fall as per capita income increases.
The correct answer is option B. For most nations, per capita spending on health care tends to rise much faster than per capita income. This is because as a nation becomes wealthier, its citizens tend to spend a larger portion of their income on health care services.
3. An increase in the poverty rate:
A. will necessarily shift the Lorenz curve toward the diagonal.
B. will necessarily shift the Lorenz curve away from the diagonal.
C. may leave the Lorenz curve unchanged.
D. normally accompanies strong growth of the economy.
The correct answer is option C. An increase in the poverty rate may leave the Lorenz curve unchanged. The Lorenz curve is a graphical representation of income distribution, and an increase in the poverty rate does not necessarily indicate a shift in this distribution. It is possible for the distribution to remain the same even with an increase in the poverty rate.