Medicare subsides will cause people to
A) consume less medical services than in the absence of the subsidies.
B) consume more medical services than in the absence of the subsidies.
C) consume the same amount medical services as they would if there were no subsidies.
D) be sicker because of inferior care.
B
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If the rate of inflation in Country A is higher than in Country B, then ________
A) in nominal terms, country A's currency should depreciate B) in nominal terms, country B's currency should depreciate C) the law of one price will not hold D) purchasing power parity does not apply
New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called “bandit barriers.” The police were surprised the bank did not take their advice. According to a deputy commissioner of police, “Commerce does very little of what we recommend. They’ve told our detectives they have no interest in ever putting in the barriers.” It would seem that Commerce Bank would have a strong incentive to install “bandit barriers” to deter robberies. Why wouldn’t they do it?
a. The banks probably resent any interference from the police department. b. The banks are concerned that “bandit barriers” would send the wrong message to customers—that the bank is unsafe. c. The banks must have weighed the cost of installing bandit barriers against the bene ts and decided that they have “no interest in ever putting in the barriers.” d. The banks would rather delay the installation of any theft deterring equipment in anticipation of new lower-cost innovations in the security devices market.
The cost incurred when the government collects taxes and uses resources to provide goods and services include:
a. the opportunity cost of the resources used b. the excess burden of the tax c. both of the above d. neither of the above
The largest and fastest-growing category of federal government expenditures is
A) grants to state and local governments. B) interest on the national debt. C) national park spending. D) transfer payments.