Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.
Figure 6.3Refer to Figure 6.3. Molly's budget constraint is AC. It would swivel to AB if the price of
A. DVDs decreased.
B. CDs increased.
C. CDs decreased.
D. DVDs increased.
Answer: D
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Answer the following statements true (T) or false (F)
1. The CPI measures price changes for only about two-thirds of all spending. 2. The GDP Implicit Price Defoliator is the broadest index of price changes. 3. The PPI is an index of the price level of aggregate output. 4. Check able deposits are counted as part of the U.S. money supply. 5. Savings deposits are not counted as part of the M1 measure of the U.S. money supply.
If a society is on its production possibilities frontier, and decides to produce more health care,
a. the cost of producing an additional unit of health care will rise b. it must employ some previously unemployed resources c. its standard of living will rise d. some kind of inefficiency will occur e. the cost of producing an additional unit of some other good will rise
Chronic nursing home care is covered by
A. Medicare, Part B. B. the two parts split the cost. C. Medicare, Part A. D. no form of Medicare.
Other things equal, a price floor will reduce consumer surplus, but it will increase producer surplus if the government buys up any surplus at the price floor
a. True b. False Indicate whether the statement is true or false