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.
Answer: B
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Intraindustry trade is characterized by what two features of the industry and market?
A) Diseconomies of scale and homogeneous products B) Non-tariff barriers and large-scale foreign investment C) Quota auctions and low effective rates of protection D) Economies of scale and differentiated products E) Government subsidies and industrial policy
Under a system of pollution taxes, we expect firms to cut pollution until the marginal benefit from tax savings equals the marginal increase in production costs due to decreasing pollution.
Answer the following statement true (T) or false (F)
Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. Profit-maximizing two-part pricing yields total revenue of
A) $24. B) $40. C) $16. D) $32.
The purchasing power of the average person in the world today is:
A. is about the same as it has been during the last two centuries. B. more than 30 times as high as it was 200 years ago. C. has increased steadily over the last two centuries. D. more than 20 times as high as it was 300 years ago.