Suppose health-care reform Y makes it unlawful for insurance companies to deny insurance to persons with a preexisting disease and sets a fine for those people who do not buy insurance. It follows that if the fine is
A) larger than the benefits derived from not buying insurance right away, then people will not buy the insurance and pay the fine.
B) smaller than the benefits derived from not buying the insurance right away, then people will not buy the insurance and pay the fine.
C) larger than the benefits derived from not buying insurance right away, then people will buy the insurance right away and not pay the fine.
D) b and c
E) none of the above
B
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When the housing bubble burst, prices fell particularly severely in
a. Georgia. b. Nevada. c. Pennsylvania. d. West Virginia.
The account that gives the most accurate understanding of the economy's potential for growth over the long term is
A. NDP. B. GDP. C. NI. D. GNP.
In the above figure, a movement from point C to point B could be explained by
A. an increase in the price level. B. increased government taxation. C. an increase in the quantity of money in circulation. D. the real-balance effect.
In the Solow model, if f(k) = 2k0.5, s = 0.3, n = 0.05, and d = 0.15, what is the value of k at equilibrium?
A. 9 B. 6 C. 3 D. 1