Which of the following would be most likely to happen if salaries for physicians were dramatically reduced?
a. Patients would receive better care.
b. Insurance companies would merge.
c. More colleges would offer medical studies.
d. Fewer people would go to medical school.
d. Fewer people would go to medical school.
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A commercial bank has actual reserves of $1 million and checkable-deposit liabilities of $9 million, and the required reserve ratio is 10%. The excess reserves of the bank are
A. $900,000. B. $1 million. C. $100,000. D. $50,000.
If a doctor knows that an insurance company will pay for most of a patient's bill, the doctor has more of an incentive to require additional medical procedures and tests, even if the patient may not require them. This is an example of
A) adverse selection. B) moral hazard. C) asymmetric information. D) the principle-agent problem.
While everyone wants a clean environment, it can be very hard to achieve. An approach governments could take to promote that outcome is to:
A. create social norms. B. create and enforce strict laws and heavy fines. C. influence individual's incentives. D. All of these are ways governments can get the "green" behavior they want.
If a nation has a higher level of technology than another nation it means that they will be able to produce:
A. more outputs with the same inputs. B. less with the same amount of physical capital. C. more with no capital. D. the same output with the same level of inputs.