Evaluate the accuracy of the following statement: Since health care is a necessity, the demand for health care will be perfectly inelastic
Health care is certainly a necessity in almost all cases. However, based on budget or income limitations, it may not be possible for some consumers to afford certain services at higher price levels. Thus demand for health care would be very inelastic - in the range of 0.2 - but not perfectly inelastic at 0.0.
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According to the text, all of the following are EU member states EXCEPT:
a. Poland b. Ukraine c. France d. Germany e. Greece
If the minimum wage rate is set above the equilibrium wage rate, then
A) unemployment definitely increases. B) unemployment definitely decreases. C) unemployment either decreases or does not change. D) unemployment definitely does not change. E) None of the above answers is correct because the minimum wage decreases search but its effect on unemployment is ambiguous.
An example of a Pigovian tax would be a tax on:
A. corporate capital gains. B. cigarettes. C. income. D. All of these are examples.
The price level in the United States is more flexible downward than upward.
Answer the following statement true (T) or false (F)