In general, the optimal amount of medical care is:
A. enough to stay healthy.
B. the quantity at which the total cost of the care equals its total benefit.
C. as much as one can afford.
D. the quantity at which the marginal cost of the care equals its marginal benefit.
Answer: D
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Which of the following is true of fiat money?
A) Fiat money is illegal and difficult to counterfeit. B) The raw materials required for the production of fiat money are available only in a few countries. C) Fiat money is not backed by a physical commodity. D) The technology required to produce fiat money is not widely available.
Public goods are
A) under provided by the private market because the marginal cost of production is too high. B) under provided by the private market because the marginal benefits of consumption are too low. C) under provided by the private market because people's willingness to pay for the good is less than the marginal benefit of the good. D) over provided by the private market because the marginal benefits of consumption are too high.
The more excess reserves banks choose to keep
A) the lower the required reserve ratio. B) the smaller the deposit multiplier. C) the larger the deposit multiplier. D) the higher the required reserve ratio.
The consumer price index tries to gauge how much incomes must rise to maintain
a. an increasing standard of living. b. a constant standard of living. c. a decreasing standard of living. d. the highest standard of living possible.