Suppose drug companies come out with new wonder-drugs capable of curing the common cold. What is the most likely effect on the demand for physicians' services?
A) The demand will become more elastic.
B) The demand will become more inelastic.
C) The demand will decrease if government or private insurance pays all or most of the physicians' fees.
D) The demand will increase if the drugs can only be obtained with a physician's prescription.
E) The demand will not change, though the quantity demanded almost certainly will.
D
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To examine how total production in an economy has changed over time, it would be better to examine
A) nominal GDP. B) real GDP. C) GDP at current prices. D) All of the above would give equal measures of production changes over time.
Problems with the federal government budget process include: a. tough choices to be made by Congress each year on which entitlement programs will receive full support. b. the constitutional requirement of Congress to balance the budget on an annual basis
c. an overly detailed budget that allows Congress to reward friends, thereby discouraging restraint on spending. d. a short review period for Congress that results in poor choices in funding programs. e. Congress having too much control over the budgetary process.
If the costs of negotiating and enforcing contracts are high relative to the benefits, buyers and sellers will have incentives to make economically efficient arrangements that increase value
Indicate whether the statement is true or false
Low voter turnout occurs because:
a. many potential voters underestimate the effect of their one vote b. many potential voters see the costs of voting as greater than the benefits c. many potential voters don't realize how much they benefit from voting d. all of the above