A company switches from a medical plan that covered all medical costs to a medical plan with a high deductible, making employees responsible for the first $1,500 of health care costs. Other things the same, a higher deductible is expected to:
A. increase both medical claims and hospital admissions.
B. reduce both medical claims and hospital admissions.
C. increase medical claims and reduce hospital admissions.
D. reduce medical claims and increase hospital admissions.
Answer: B
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Fred the farmer purchased five new tractors at $20,000 each. Fred sold his old tractors to other farmers for $50,000. The net increase in GDP of these transactions was
A) $50,000. B) $100,000. C) $125,000. D) $150,000.
The deviation of unemployment from its natural rate is called cyclical unemployment
a. True b. False Indicate whether the statement is true or false
If consumers spend 85 cents out of every extra dollar received, the:
A. MPC is 0.85. B. MPC is 0.15. C. MPC is 6.67. D. MPS is 0.85.
Exhibit 2-14 Production possibilities curve
In Exhibit 2-14, which of the following explains this economy's movement from point E to point F?
A. The rate of unemployment in this economy would have increased. B. Consumption goods production has increased, but capital goods production has decreased. C. The economy has decreased unemployment, but some degree of unemployment still exists D. The economy has achieved full employment.