What is the equilibrium quantity in this market?
a. 4 units
b. 8 units
c. 12 units
d. 16 units
Ans: b. 8 units
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Which of the following statements about economic analysis is true?
A) Unlike positive economic analysis, normative economic analysis can be tested. B) There is much more disagreement among economists over normative economic analysis than over positive economic analysis. C) Normative economic analysis is concerned with "what is," whereas positive economic analysis is concerned with "what ought to be." D) Economics is primarily about normative analysis, which measures the costs and benefits of different courses of action.
According to the text, one of the disadvantages of our current welfare system is that
A. it gives the poor too much money. B. it provides incentives for the poor not to work. C. it works in the opposite direction of Rawl's view of justice. D. it is biased in favor of rich people.
Price floors and ceiling prices:
A. both cause shortages. B. both cause surpluses. C. cause the supply and demand curves to shift until equilibrium is established. D. interfere with the rationing function of prices.
All of the following are reasons that health care costs have risen so much in the past few decades EXCEPT
A. third party payments. B. higher imports. C. the aging population. D. new technologies.