Refer to the graph. If the interest rate rises from 2 percent to 3 percent, the supply of money must have:
A. Decreased by $50 billion
B. Decreased by $100 billion
C. Decreased by $150 billion
D. Increased by $50 billion
A. Decreased by $50 billion
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Refer to Figure 7-6. Answer the following questions:
1. What would be the equilibrium price and quantity if consumers had to pay the full price of medical services? 2. With insurance acting as a third-party payer, what price will consumers pay for medical service? 3. With insurance acting as a third-party payer, what price will doctors receive for medical service? 4. With insurance acting as a third-party payer, what will be the equilibrium quantity of medical services? 5. With insurance acting as a third-party payer, what will be the value of the deadweight loss?
Refer to Figure 7.6. Which graph represents decreasing returns to scale?
A. A
B. B
C. C
D. Both graph A and graph C
Which of the following changes in the price index produces the greatest rate of inflation: 100 to 110, 150 to 165, or 180 to 198?
a. 100 to 110 b. 150 to 165 c. 180 to 198 d. All of these changes produce the same rate of inflation.
A portion of a worker's earnings is rent if
A) the worker was the last person hired at the going wage rate. B) the supply curve of labor is horizontal. C) the worker would accept a small wage cut without quitting or working for someone else. D) the worker has industry-specific skills.