The Demand and Supply Curves Shown Below Apply to a Competitive

question 52

Multiple Choice

The demand and supply curves shown below apply to a competitive market for a factor used in the production of widgets. FIGURE 13-2
-Refer to Figure 13-2.This factor market is in equilibrium at point B.If a technological change occurs in the production of widgets that allows for increased production from each factor,then

• A)economic rents to the initial 40 units of the factor will decrease.
• B)equilibrium will move toward point D and the factor price will rise.
• C)total factor earnings will rise and economic rent to the 40th unit will be zero.
• D)equilibrium will move toward point C and economic rent to the initial 40 units will increase.
• E)total factor earnings will decrease and economic rent to the initial 40 units will increase.

---

Definitions:

Medically Necessary

A term used to describe medical services or supplies that are required to diagnose or treat an illness, injury, condition, disease, or its symptoms and meet accepted standards of medicine.

CMS-1500

A standard form used by healthcare providers to submit claims for services provided to patients covered by Medicare and other health insurance programs in the United States.

Centers for Medicare and Medicaid Services

A federal agency within the United States Department of Health and Human Services responsible for administering the nation's major healthcare programs, Medicare and Medicaid.

Initial Preventive Physical Exam

An introductory health assessment typically provided by Medicare, designed to establish a preventive health care plan for new beneficiaries.