Which of the following is NOT a reason for rising health care expenditures in the United States over the last 40 years?
A) aging of the population
B) technological change
C) third-party financing of health care expenditures
D) discovery of new diseases
Answer: D
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How might asymmetric information cause a well-managed bank to be abandoned by its depositors?
What will be an ideal response?
Ordinary Least Squares Regression analysis attempts to
A) maximize the distance of each point from a regression line. B) select a line that fits the data well. C) maximize the residual. D) change a multivariate problem into a single dimension.
If the price of jelly increases 10 percent and the amount of peanut butter purchased decreases 20 percent, then the cross-price elasticity of these goods is:
A. 0.5. B. 2. C. 0.5. D. 2.
The economy is in long-run equilibrium when Senator Soldout argues that the Fed should do more to fight unemployment. He argues that if the Fed increased the money supply faster, more workers would find jobs. The Senator's argument
a. is completely correct. b. is completely wrong. c. is true for the short run but not the long run. d. is true for the long run but not the short run.