Assume the price of Advil increases. As a result, you decrease the quantity of Advil purchased each month and purchase more Tylenol. This is an example of the:
A. income effect.
B. utility effect.
C. consumption effect.
D. substitution effect.
Answer: D
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A decrease in the level of real GDP in the economy leads to
A) a leftward shift in the demand for money curve. B) a rightward shift in the demand for money curve. C) a leftward movement along the demand for money curve. D) a rightward movement along the demand for money curve.
In the long run
A) fixed costs tend to be greater than variable costs. B) variable costs tend to be greater than fixed costs. C) all costs are fixed costs. D) all costs are variable costs.
Which of the following would be an example of case-based payment?
A. Four-tier pharmacy formularies B. Copayment waivers for primary care services C. Medicare DRGs D. All of the above
Which of the following is the best example of causation? (versus correlation)?
A. Oil prices go up and gasoline prices go up. B. Women's skirts get shorter and the stock market goes up. C. The groundhog sees its shadow and winder lasts longer. D Ice cream sales and the number of drownings.