Recipients of Medicare tend to demand a greater quantity of low-value, high-cost services because
A) the services are readily available.
B) recipients are coerced into demanding such services.
C) the government mandates that they demand such services.
D) the services are heavily subsidized.
D
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If a prisoners' dilemma game is played repeatedly, what punishment strategies might the players employ and how does playing the game repeatedly change the equilibrium?
What will be an ideal response?
Suppose there are two firms, Boors and Cudweiser, each selling nonalcoholic beer. Suppose Boors and Cudweiser are not viewed as perfect substitutes but rather demand for Boors is QB = 5000 ? 1000PB + 100PC and demand for Cudweiser is QC = 3000 ? 1500PC + 100PB. For simplicity, assume zero marginal costs. Which is the more preferred beer?
a. Boor's b. Cudweiser c. they are equally preferred d. neither are preferred
What is the difference between a tariff and a quota?
What will be an ideal response?
In the interest-rate-based transmission mechanism, a decrease in the money supply will
A. shift the aggregate supply function inward and increase real Gross Domestic Product (GDP). B. reduce investment, shift the aggregate demand function inward, and lower real Gross Domestic Product (GDP). C. reduce the rate of interest and the level of investment. D. increase the price level.