Question

(1 of 5)

Which concept of market efficiency is violated when health consumption is subsidized for the patient?

Overall efficiency

Fairness efficiency

Normative efficiency

Pareto optimality

(2 of 5)

If you tend to consume proportionately more of something when your income rises, what is the income elasticity of that item?

Less than one

Greater than one

Greater than zero

100%

(3 of 5)

What is one solution to markets in need of rationing?

Direct government production of the item in short supply

Increased regulation on producers

Price controls

Subsidies for patients that cannot afford the treatment

(4 of 5)

Which of the following creates a shortage of available supply?

Mandated consumption

High prices

Labor cost

Regulatory capture

Answer 1

Ans. 1. D. Pareto Optimality

2. B. Greater than 1 - The income elasticity would be more than 1 .

3. C. Price control - This is what is needed in a market that needs rationing.

4. A. Mandated Consumption - This creates a shortage in available supply.

Best of Luck !! !!

Answer 2

overall efficiency