Why have health care costs risen so much in recent years?
What will be an ideal response?
The elderly use a disproportionate amount of health care, and the population is getting older, so there is a rising demand for health care. Furthermore, new technologies have contributed to higher prices. Third-party financing for health care also encourages people to demand more services than they would otherwise, causing higher prices.
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The rate-of-return regulated public utility can have incentive to price some services too high and others too low, relative to efficient prices
Indicate whether the statement is true or false
Assume a family that earns $20,000 pays $2,000 in income taxes, while a family that earns $40,000 pays $3,500 in income taxes. In this situation, the income tax system is
A) progressive. B) regressive. C) proportional. D) one of the above but we cannot tell which one without more information.
Why do markets tend to underproduce public goods?
Which of the following was NOT a result of the BRAC anti-poverty program in Bangladesh?
a. Improved mental health b. Higher income levels a year after the program ended c. Improved female empowerment d. Large increases in income of over 10 percent