Health care costs rose more than 10 percent in 2011, according to a survey of insurers by Aon Consulting Worldwide. If the increase in costs solely comes from increased prices for MRI and X-ray machines, then for the health care industry
A) fixed costs are increasing.
B) long run average total cost is decreasing.
C) productivity is increasing.
D) variable costs are increasing.
A
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When the price of Gatorade is $2 per bottle, the quantity demanded is 500 bottles per at the local grocer. When the price falls to $1 per bottle, the quantity demanded increases to 1000. Given this information, the demand for Gatorade is
A) inelastic. B) elastic. C) unit elastic. D) perfectly elastic.
Refer to Scenario 4 . What is the opportunity cost of building one more prison?
What will be an ideal response?
Which of the following is true of the federal funds rate?
a. It is the interest rate that one bank charges another for overnight lending. b. It is the interest rate that the Federal Reserve Bank charges commercial banks for borrowing money. c. It is the interest rate you earn in your saving account. d. It is the interest rate the bank charges business firms for borrowing money. e. It is the interest rate that a domestic bank charges a foreign bank for borrowing money.
The law of supply states that an increase in the price of a good
a. decreases the demand for that good b. decreases the quantity demanded for that good c. increases the supply of that good. d. increases the quantity supplied of that good. e. does none of the above