In the United States, doctors and hospitals that provide most health care are
A) primarily private firms.
B) primarily employed by the government.
C) split evenly between private firms and employed by the government.
D) 100 percent employed by the government.
Answer: A
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Financial contributions to the campaigns of members of Congress, state legislators, and other elected officials by firms that seek special interest legislation that make the firms better off are
A) illegal. B) the result of the voting paradox. C) irrational because elected officials will almost always act in the interest of the voters who have to pay the cost of the legislation. D) examples of rent seeking.
Assuming Vice President Smith has to sacrifice more than his assistant in order to engage in full-time typing, we would say that his assistant has a(n) ________ advantage in typing versus Mr. Smith
A) absolute B) comparative C) pecuniary D) overwhelming
If a production process created pollution, then the social cost curve would be:
A. below the market supply curve. B. the same as the original market supply curve. C. above the market supply curve. D. zero.
The distribution of surplus gained from private parties solving an externality problem on their own, as described by the Coase theorem, is dependent on:
A. who has more power to see to enforcement. B. which party has more negotiating power or wealth. C. where the initial rights of the parties lie. D. None of these statements is true.