Refer to the indifference curve in Figure 3.3. Which of the following is true about the MRS?
A) It is negative.
B) It is positive.
C) It is equal to zero.
D) It is undefined.
D
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The top 25 most frequently used DRGs accounted for approximately _______ percent of all discharges under Medicare
a. 28 b. 38 c. 48 d. 58 e. 68
In a market characterized by many sellers, assume that transaction costs for both buyers and sellers are both costlessly cut to zero. What will happen to total economic value?
a. Economic value will remain unchanged because the decrease in consumer surplus will offset the increase in producer surplus. b. Economic value will remain unchanged because the decrease in producer surplus will offset the increase in consumer surplus. c. Economic value will certainly increase but its magnitude will depend on the initial transaction costs of the market participants. d. Economic value will certainly decrease but its magnitude will depend on the initial transaction costs of the market participants.
Gross domestic product measures
A. the total income of everyone in the economy. B. the value of all output in the economy. C. the total spending of everyone in the economy. D. all of the above
The Prime Minister of Richlandia hires you as an economic consultant. He is concerned that the output level in Richlandia is too low and that this will cause unemployment to rise. He feels that it is necessary to increase output by $20 billion. He tells you that the MPC in Richlandia is 0.75. Which of the following would be the best advice to give to the Richlandian Prime Minister?
A. Increase government purchases in Richlandia by $5 billion. B. Reduce taxes in Richlandia by $4 billion. C. Increase government purchases in Richlandia by $15 billion. D. Reduce taxes in Richlandia by $10 billion.