Better health allows people to work harder, which raises a country's total income. This indicates that in effect, better health
A) is a primary cause of price increases.
B) reduces the incentive to work.
C) shifts out a country's production possibilities frontier.
D) increases consumer surplus.
Answer: C
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A move up, along the short-run Phillips curve represents a decrease in the unemployment rate.
Answer the following statement true (T) or false (F)
American Airlines makes numerous nonstop flights from Chicago's O'Hare Airport to the airport at Dallas-Fort Worth. The distance between those two cities is 1,000 miles. The only variable cost, fuel, costs $.06 for each passenger-mile it flies. Bob, on his way to an emergency business meeting, buys a ticket in coach class for $1,300 at the very last minute. The marginal cost of flying Bob from
Chicago to Dallas-Fort Worth is: a. b and e. b. higher than the average cost of previous passengers. c. $600. d. $160. e. $60.
Suppose an economy is initially in long-run equilibrium and it then experiences a supply shock in the form of exceptionally high energy prices. Which of these will be true in this economy? a. The short-run aggregate supply curve will shift leftward, and the long-run supply curve will shift rightward. b. The short-run aggregate supply curve and the long-run supply curve will shift rightward
c. The short-run aggregate supply curve will not shift, and the long-run aggregate supply curve will shift rightward. d. The short-run aggregate supply curve will shift rightward, but the long-run aggregate supply curve will not shift. e. The short-run aggregate supply curve and the long-run supply curve will shift leftward.
Input-output analysis is rarely used because
a. it requires tremendously complex calculations. b. it requires large amounts of data. c. market economies can instead rely on the price mechanism to organize production. d. All of the above are correct.