Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The perceived price on the part of consumers is
A) Ps.
B) P0.
C) Pd.
D) undetermined without more information.
C
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A bubble is defined to be when:
A. an asset is not being traded very heavily. B. financial advisors purposely trying to deceive the public and sell a worthless asset. C. when the financial markets are trading an asset at much higher than historically justifiable prices. D. there are a limited number of buyers of an asset which causes the market to crash.
A free market system tends to
a. produce a fairly equal distribution of income. b. pay people exactly what they are worth. c. produce a relatively unequal distribution of income. d. pay most people more than they are worth, at the expense of reducing firms' profits.
Several studies in the 1990s concluded that the consumer price index overstated inflation by about
a. 3 percentage points per year, and that number of percentage points likely still applies now. b. 3 percentage points per year, but recent improvements to the CPI probably have reduced the overstatement of inflation to something less than 3 percentage points. c. 1 percentage point per year, and that number of percentage points likely still applies now. d. 1 percentage point per year, but recent improvements to the CPI probably have reduced the overstatement of inflation to something less than 1 percentage point
All of the following are surplus items on the balance of payments accounts EXCEPT
A) U.S. residents purchases of gold from foreign residents. B) foreign tourists spending funds in the United States. C) exports of merchandise. D) sales of U.S. dollars to foreign residents.