Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
Demand for the new drug is ________ while demand for one brand of the over-the-counter pain relievers is ________.
A. the horizontal line at $60; the line labeled B
B. the line labeled B; the line labeled A
C. the line labeled A; the line labeled B
D. the vertical line at 100; the line labeled A.
Answer: C
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Average total costs are total costs divided by
A) total output. B) total fixed costs. C) total variable costs. D) the total number of workers employed.
The Gini coefficient is really a point estimate of equality at a certain time period. Why is this a limiting factor when it comes to examining issues of equality over a lifetime?
What will be an ideal response?
The incidence of a tax refers to
a. who receives the benefits from the revenue generated by the tax b. the changes in the marginal tax rate as income increases c. whether the tax is regressive, proportional, or progressive d. who bears the burden of the tax e. whether the tax is based on the ability-to-pay principle
Disposable income can be defined as national product
a. minus federal and state taxes. b. minus taxes plus transfers. c. minus indirect taxes. d. plus taxes plus transfers.