Refer to the demand and supply diagram that relates to the health care market. The efficiency loss caused by the availability of health insurance is shown by area:
A. P 1 abP 2 .
B. abc.
C. adc.
D. Q 1 acQ 2
C. adc.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Going to the dentist would be counted in GDP as
A) insurance utilization. B) a measure of welfare. C) a service. D) crowns and fillings.
Goods with small substitution effects tend to be normal goods.
Answer the following statement true (T) or false (F)
The concept of "rational expectations" is consistent with the notion of
a. utility maximization. b. profit maximization. c. strong mechanisms towards equilibrium in markets d. auction markets. e. all of the above.