Only money prices affect incentives; shadow prices do not.
Answer the following statement true (T) or false (F)
False
Shadow prices take opportunity costs into account and therefore affect incentives.
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The above figure supports all of the following statements regarding health care EXCEPT
A) the demand for health care is insensitive to price changes; as the price goes up, so does the quantity demanded. B) if all medical expenses were paid for by third parties, the quantity demanded would increase tremendously. C) due to third party payments, patients demand a higher quantity of health care services per year. D) the lower the deductible, the greater is the quantity demanded of health care services per year.
Keynes emphasized the idea that wages and prices adjusted very rapidly bringing an economy back to the full employment level of output
a. True b. False Indicate whether the statement is true or false
GDP excludes the value of all these goods and services EXCEPT
What will be an ideal response?
Assuming a CEO has to sacrifice more than his assistant in order to engage in full-time typing, we would say that his assistant has a(n) ________ advantage in typing versus the CEO
A) absolute B) comparative C) pecuniary D) overwhelming