1. Which assumption do economists typically not make about individuals making decisions? People will maximize utility. Individuals have full information and are able to process this information. Individuals are rational decision makers. People are irrational decision-makers. 2. Which is not a common demand shifter? Consumer tastes and preferences. Consumer income. Fitting in with the group. Prices of substitute and complementary goods. 3 Which is not a moral hazard relate to health insurance?) Might encourage those clients to behave in riskier ways. Behavior of the insured party changes in a way that raises costs for the insurer. Individuals demand for pricier and more elaborate medical services. Prices of substitute and complementary goods could make them change companies. 4. Which is not a common supply shifter?) Cost of outputs Available technology Profitability of other goods Number of sellers in the market 5. Which is not a market failure? ( The efficient allocation of goods. When you are better off when someone else is worse off. Pursuit of self-interest leads to inefficiency. Corrections made by government may make matters worse. 6 Which is not a common characteristic of the uninsured? They are employed They don’t want insurance because they don’t like doctors They are children They have low incomes and resources available to them Which is not an example of the way being uninsured impacts an individual’s health status? ( The individual is more likely to postpone or fail to receive needed medical care. The individual is less likely to be screened for serious illnesses. The individual is more likely to enter the health care system in poorer health. The individual is more likely to receive less treatment, even for serious acute or chronic health conditions. Which is not a reason why the U.S. healthcare system is not a perfectly competitive market? ) Lack of perfect competition. Lack of Perfect information. Healthcare business must be a price taker. Corrections made by government may make matters worse. Which is not a reason why it is more difficult to have healthcare reform in the United States? Our healthcare system is more complex than other countries. Other countries already have universal coverage. Other countries have parliamentary systems. Our healthcare system has better products and services. . Which is correct concerning the concept of monopsony? A monopsony occurs when a firm has market power in employing factors of production. A monopsony occurs when a firm does not have market power in employing factors of production. A monopsony occurs when a firm does not have market power in employing factors of demand A monopsony occurs when a firm does not have market power in employing all the service factors . Which is correct concerning the price elasticity of demand for medical care and health status? The demand for health care is consistently found to be price elastic. The demand for health care is consistently found to be price inelastic. The demand for health care is price variable. The demand for health care is price invariable.