Programs that reduce the incentive to work make income redistribution inefficient
a. True
b. False
Indicate whether the statement is true or false
True
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Because of NAFTA, the U.S. shifts some of its imports from Japan to Mexico (a member of NAFTA). This is an example of
A. trade deflection. B. trade diversion. C. protectionism. D. rules of origin.
In order to sell more units, a monopolist must lower its prices. As shown in the table below, total revenue will initially ____________ and then ______________.
a. increase, continue to increase b. decrease, continue to decrease c. increase, decrease d. decrease, increase
When Cody went to the physician with a sore elbow, after hearing Cody's symptoms and examining the elbow manually, Cody's physician had two options: (1) prescribe an anti-inflammatory drug and advise Cody to abstain from vigorous physical activity for a period; or (2) advise Cody to undergo a magnetic resonance imaging (MRI) exam, a costly diagnostic procedure. Which of the following physicians is more likely to recommend option 1?
A. A physician who is not concerned about the marginal cost of an MRI. B. A physician who is part of an HMO. C. All physicians would recommend option 1. D. A physician who is compensated under a conventional health insurance plan.
For a perfectly competitive firm, the short-run break-even point occurs at the level of output where
A) P > MR = MC. B) MR = P > MC. C) MR < P = MC. D) P = MC = ATC.