If the supply of health-care services is highly inelastic and larger government subsidies lead to an increase in the demand for the services,
a. the prices of health-care services will rise by only a small amount, but the quantity supplied will increase substantially.
b. the prices of health-care services will rise substantially, but the quantity supplied will increase by only a small amount.
c. both health-care prices and the quantity of the services supplied will increase substantially.
d. the prices of health-care services will decline, but there will be only a small change in the quantity supplied.
B
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The free rider problem is an economic issues associated with
a. Public Goods b. Negative externalities c. Social cost d. Marginal Benefits
Once monetary policy is dedicated to controlling the level of nominal GDP, then fiscal policy can be used to
A) choose the overall level of interest rates, with a high budget surplus implying a high level of interest rates. B) choose the overall level of interest rates, with a high budget deficit implying a high level of interest rates. C) control the level of inflation, with a high budget surplus implying a faster rate of inflation. D) control the level of inflation, with a high budget deficit implying a faster rate of inflation.
A testable proposition that predicts how people will react to changed circumstances is called a hypothesis
a. True b. False Indicate whether the statement is true or false
Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources
A. the number of resources used should be decreased since society must protect its scarce resources. B. the concept of opportunity costs does not exist. C. the economy is producing efficiently. D. more goods will be available than customers want to buy.